Business Tax Audit Defense Attorney

As your business tax audit defense attorney, Booth P.C. acts as your shield and advocate throughout the IRS examination, handling all communications with the IRS so you are not dealing with auditors directly and do not inadvertently say or provide something that increases exposure. We analyze the audit notice and issues under review, control the flow and scope of information provided, prepare and present necessary documentation in a way that supports your reported positions, and push back against improper requests or proposed adjustments. Our role is to protect your rights, minimize additional tax, penalties, and interest, and, if necessary, challenge the IRS’s audit results through appeals or litigation to achieve the most favorable resolution possible for your business.

Your business should hire a tax audit defense attorney as soon after you receive an IRS audit notice, or immediately if the audit involves large dollar amounts, payroll taxes, cryptocurrency, worker classification, or multiple tax years, because early representation can significantly limit risk and cost. at Booth P.C. we step in before mistakes are made, take over all IRS communications, set the audit strategy, and control what information is provided and how it is framed, which often prevents issues from expanding or becoming adversarial. The earlier we are involved, the more leverage we have to narrow the scope of the audit, protect your business operations, reduce proposed adjustments and penalties, and position the case for a favorable resolution through the audit, Appeals, or, if necessary, litigation.

When the IRS starts an audit, the most important step for your business to take is to respond deliberately and strategically rather than reactively. At Booth P.C. we review the audit notice to identify the scope, years, and issues under examination, confirm deadlines, and notify the IRS that all communications should go through our office, which protects you from informal questioning or over-disclosure. We then develop a strategy, gather and organize documentation, and respond to IRS requests in a controlled and defensible manner, ensuring the audit stays limited, your rights are protected, and your exposure to additional tax, penalties, and interest is minimized.

For a business tax audit, Booth P.C. will work with you to gather only the documents that are relevant and necessary to support the items under examination, rather than turning over everything the IRS might ask for. Commonly required records include tax returns for the audited years, general ledgers, profit-and-loss statements, balance sheets, bank statements, payroll records, invoices, receipts for expenses, contracts, and documentation supporting deductions, credits, or income reported. At Booth P.C. our role is to review these materials first, identify strengths and risks, organize them in an audit-ready format, and decide how and when to present them so the IRS receives sufficient support without expanding the scope of the audit or creating unnecessary exposure for your business.

Taxpayers have important rights during an IRS audit. These include the right to professional and courteous treatment, the right to be informed about the audit process, and the right to representation by an attorney, CPA, or enrolled agent. You may also appeal IRS decisions, request clarification, and only provide records relevant to the audit. Additionally, you are protected against unreasonable IRS requests or harassment.

During an IRS audit, Booth P.C. will raise defenses that focus on both the substance of your tax positions and the procedural limits on the IRS’s authority, with the goal of reducing or eliminating proposed adjustments. Substantively, we defend as accurate your reported income, deductions, credits, and accounting methods by substantiating them with proper records, legal authority, and industry practice, while challenging IRS assumptions, estimates, or misapplications of the law. Procedurally, we push back against overbroad or irrelevant information requests, statute of limitations issues, improper audit expansion, and penalty assertions, particularly where there is reasonable cause or good-faith reliance. At Booth P.C. our strategy is to control the audit, narrow disputed issues, and position the case for a favorable resolution at the examination level or, if needed, in IRS Appeals or Court.

If the IRS identifies issues during the audit, it will propose adjustments in an examination report. When you retain Booth P.C., we immediately step in to challenge or negotiate those findings before they become final. We review the IRS’s analysis, dispute unsupported assumptions or legal errors, present additional documentation or legal authority, and argue against penalties where reasonable cause or good-faith compliance applies. If the examiner will not resolve the issues fairly, we escalate the case to IRS Appeals to seek an independent review, and if necessary, we preserve your right to litigate, all while working to minimize additional tax, penalties, and interest and protect your business from unnecessary IRS enforcement.

If you disagree with an IRS audit finding, Booth P.C. can appeal it by requesting review through IRS Appeals, which provides an independent evaluation separate from the examiner. After the IRS issues a proposed adjustment or examination report, we submit a written protest explaining the factual and legal basis for disagreement, supported by documentation and applicable law, and negotiate with an Appeals officer whose role is to resolve disputes fairly and avoid litigation. If Appeals does not resolve the case favorably, we preserve your right to challenge the assessment in court, all while working to limit additional tax, penalties, and interest and protect your business’s long-term interests.

Yes, hiring a tax attorney can often reduce or eliminate audit penalties by identifying and asserting defenses that the IRS may not consider unless properly raised and supported. At Booth P.C., we evaluate whether penalties were proposed incorrectly, argue reasonable cause and good-faith reliance on professional advice, challenge valuation or estimation errors, and ensure the IRS meets its burden for penalty assertions. By presenting your facts and legal arguments clearly and negotiating strategically with the examiner or Appeals, Booth P.C. frequently succeeds in having penalties abated or substantially reduced, even when some tax adjustment remains.

Handling an IRS audit without legal representation exposes your business to significant risk, as seemingly routine interactions with the examiner can unintentionally and dramatically expand the scope of the audit or create admissions that increase tax liability. Without counsel, businesses often overproduce documents, misunderstand legal standards, miss procedural defenses, or fail to properly challenge penalties and proposed adjustments. By contrast, when you retain Booth P.C., we control communications, limit disclosure to what is legally required, protect privileged information, and position the case strategically, reducing the risk of higher tax assessments, penalties, extended audits, or escalation into enforcement or litigation.

Businesses choose Booth P.C. for tax audit defense because we focus on protecting your company at every stage of an IRS examination, not just responding to IRS requests. We bring deep experience in federal tax procedure and audit defense, take over all communications with the IRS, and strategically manage the flow of information to limit exposure and prevent audit expansion. Our approach is proactive and business-minded: we identify risks early, challenge improper adjustments and penalties, and pursue the most efficient resolution, whether at the audit level, in Appeals, or through litigation, so your business can stay focused on operations while we handle the IRS.