An audit is not simply another tax-preparation engagement. The professional must understand the return, the records, the examination process, and how to present the taxpayer’s position.
Start with representation authority
Enrolled Agents, CPAs, and attorneys generally have unlimited rights to represent taxpayers before the IRS. Then ask how much actual examination work the person handles.
Relevant issue experience matters
An examination involving business expenses, reasonable compensation, basis, rental losses, or another technical issue benefits from a representative familiar with both the substantive tax law and the examination process.
Organization matters
A good representative identifies the issues, requests the relevant records, organizes the response, and avoids sending unnecessary information that is not responsive to the examination.
Ask how disputes are escalated
If agreement cannot be reached at examination, ask whether the representative handles appeals or whether another professional would become involved.