Table of Contents
Valor Tax Relief Team
Professional Tax Resolution Specialists
Published: September 10, 2026
Last Updated: September 10, 2026
Key takeaways
- Representation role. An IRS audit and appeals lawyer helps respond to examinations, dispute proposed adjustments, and pursue eligible appeals.
- Three audit types. Correspondence, office, and field audits vary in scope and complexity.
- Common issues. Unreported income, questioned deductions, business expenses, crypto, foreign accounts, and payroll taxes.
- Appeals option. Eligible taxpayers who disagree may request review through the IRS Independent Office of Appeals.
- Deadlines matter. Appeal requests generally require identifying disputed issues, supporting documentation, and timely filing.
- Different goals. Audit lawyers dispute what you owe; tax resolution professionals address an established liability.
What an IRS audit means for you
An IRS audit reviews your return to verify accuracy and compliance with tax laws. Receiving an audit notice does not necessarily mean you made a mistake or will owe additional tax.
The IRS may examine returns because of discrepancies with third-party information, unusually large deductions, complex transactions, business activity, investment income, cryptocurrency, or other items requiring clarification. Common areas include income, deductions, credits, business expenses, filing status, and investment transactions.
Examinations can end with no adjustment, a bill for extra tax plus penalties and interest, or occasionally a refund. Keeping accurate records makes it easier to defend what you filed.
Role of an audit and appeals tax attorney
An IRS audit and appeals lawyer is a tax attorney who helps taxpayers address IRS disputes involving examinations, proposed adjustments, and eligible appeals—before, during, or after an audit.
Audit representation: core responsibilities
An audit lawyer helps you understand what the IRS is examining and develop an appropriate response. That may involve reviewing your return, analyzing identified issues, gathering documentation, and communicating with IRS personnel.
Example: A self-employed contractor reports $95,000 of business income and $38,000 in expenses. During an audit, the IRS questions $12,000 of those deductions. An audit lawyer could review records, determine which expenses are adequately supported, research applicable rules, and help present your position to the IRS.
An audit lawyer may also represent you during meetings with the IRS—especially when an examination involves multiple tax years, significant potential liability, complicated transactions, or tax law interpretation questions.
Appeals representation: what changes
An appeals lawyer helps challenge IRS determinations you believe are incorrect. The lawyer may review the examination report, identify factual or legal disagreements, prepare an appeal request, and present your position during an Appeals conference.
The IRS says taxpayers considering an appeal generally should have received correspondence explaining appeal rights, should disagree with the decision, and should not have signed an agreement accepting the determination.
An appeals lawyer’s job is not simply to tell the IRS that you disagree. A well-prepared appeal should identify the specific issues in dispute and support your position with relevant facts, documentation, and applicable tax law.
Is an audit lawyer the same as a tax attorney?
The labels often overlap. “Tax attorney” describes a lawyer specializing in tax law; “audit lawyer” or “appeals lawyer” usually means that same attorney is working on a specific IRS examination or dispute.
Other tax professionals, including certified public accountants and enrolled agents, may also represent taxpayers before the IRS when they meet applicable requirements. The appropriate professional depends on the complexity of the issue and the type of assistance you need. See our guide on tax attorney privilege and IRS representation.
Reasons the IRS selects returns for review
The IRS conducts audits to verify that information on a return is accurate and complies with federal tax laws. Selection does not necessarily mean you did anything wrong.
Examinations may arise from discrepancies with third-party data, large deductions, complex transactions, business activity, investment income, cryptocurrency, foreign accounts, or other items needing clarification.
An audit does not automatically mean you owe money. Outcomes can include no changes, additional tax with penalties and interest, or a refund. Documentation supports what you reported.
Correspondence, office, and field examinations
The IRS conducts examinations in different ways depending on issue complexity. The three traditional types are correspondence, office, and field audits.
Correspondence audit
Conducted through the mail. The IRS sends a notice explaining items under review and requests supporting documentation—such as records establishing eligibility for a questioned credit. You generally respond by submitting requested documentation according to the instructions and deadline in the notice.
Correspondence audits are often narrower in scope than in-person examinations but should still be taken seriously. An examination can expand when the IRS identifies additional issues or does not receive adequate information.
Office audit
Takes place at an IRS office. You or your representative may provide records and answer questions about specific return items. Office audits involve more direct discussion than correspondence examinations because you may meet face-to-face with an IRS examiner.
The documents and questions involved depend on the issues under examination—there is no single standard package for every office audit.
Field audit
A more comprehensive in-person examination at your home, business, or representative’s office. The IRS describes field audits as examinations that may involve reviewing books, records, and other financial information on site.
Field reviews matter most for businesses and taxpayers with layered finances. A revenue agent may dig into several parts of your records and broaden the scope if new issues surface.
How a lawyer can help with each audit type
The need for professional representation depends on the facts of your case. You may be comfortable handling a straightforward correspondence audit independently, while a complex field examination involving a business, multiple tax years, or substantial potential liability may warrant professional assistance.
An audit and appeals lawyer can help you understand what information is relevant, organize supporting evidence, and communicate with the IRS in a way that addresses the specific issues under examination—regardless of audit type.
What to do if you receive an IRS audit notice
An audit notice is not a reason to panic, but it does require attention to deadlines. Understanding what the IRS is asking for is the first step toward an appropriate response.
Read the notice carefully
Start by identifying the tax year under examination and the specific items the IRS wants to review. The notice should explain what information is requested, where to send it, and when the response is due.
Look for information explaining your rights and any available appeal procedures. Different IRS notices can have different requirements and deadlines—do not assume one procedure applies to every audit.
Gather supporting documents
Documentation depends on the issues examined. Questioned business expenses may require invoices, receipts, bank statements, and mileage records. Charitable contribution reviews may need donation receipts. Provide records that directly address the IRS’s questions rather than unrelated volumes of information.
Respond by the deadline
Ignoring an audit notice can make the situation more difficult. When requested records never arrive, the IRS may issue a decision based on whatever information it already has.
If you cannot meet the deadline or need clarification, review the notice for instructions about contacting the IRS. In some cases, bringing in a qualified representative early is the better move.
Consider professional representation
Representation may be worth considering if the audit involves substantial potential tax liability, complicated tax law, multiple years, a business, disputed deductions, or potential fraud concerns.
An audit lawyer can help you understand what the IRS is asking before responding—particularly valuable when issues are complicated or you are uncertain how requested information affects your case. Learn more about audit representation.
What issues can an audit and appeals lawyer help with?
Audit and appeals lawyers assist with a wide range of disputes—especially when you disagree with how the IRS applied the law or interpreted facts.
Unreported or underreported income
The IRS may question whether you reported all income reflected on third-party information returns. If you report $72,000 but Forms 1099 show $82,000, the discrepancy may cause the IRS to ask you to explain the difference.
There can be legitimate reasons for an apparent discrepancy—income reported elsewhere on the return, errors on an information return, or duplicate reporting of the same transaction. Documentation can help explain the difference.
Questioned tax deductions and credits
The IRS may disallow deductions or credits if you cannot substantiate them or do not meet applicable requirements. You may have grounds to challenge the adjustment if the IRS misunderstood the facts or incorrectly applied the tax law.
For example, if the IRS disallows a business deduction because it believes the expense was personal, you may provide records demonstrating the expense’s business purpose.
Self-employment and business expenses
Business returns carry heavy deduction schedules and accounting detail. Examiners often probe whether costs were truly business-related, properly documented, and not personal spending in disguise.
Owners can also be questioned on revenue reporting, worker status, payroll withholding, depreciation, inventory methods, and related items. See self-employment tax basics and our small business owner hub.
Cryptocurrency transactions
Digital asset transactions can create complicated reporting issues involving sales, exchanges, income, basis, and other tax considerations. Records from multiple exchanges may need to be reconciled.
If you receive an IRS notice concerning digital asset transactions, carefully review the records involved rather than assuming the IRS’s calculation is necessarily correct or incorrect.
Foreign income and financial accounts
International tax matters can involve additional reporting requirements. These cases become particularly complicated when taxpayers have foreign financial accounts, investments, businesses, or income.
Cross-border rules add reporting layers and penalty exposure, so audits touching foreign accounts or overseas income often call for advisors who work in that niche regularly.
Payroll and employment tax issues
Businesses may face examinations involving worker classification, payroll taxes, withholding, or other employment tax matters. An IRS examination could question whether workers were properly classified as employees or independent contractors.
Misclassifying workers can ripple across multiple years and trigger back withholding, penalties, and amended filings.
Tax fraud or potential evasion concerns
Examinations become high-stakes when the IRS suspects deliberate misreporting or hidden income. A bookkeeping error and willful fraud are legally distinct—and the IRS treats them that way.
If an audit involves potential civil fraud or criminal tax exposure, consider obtaining qualified legal advice before making substantive statements to the IRS.
What happens after an IRS audit?
When an examination wraps up, the IRS typically sends a letter or report summarizing its conclusions and any proposed changes. What happens next hinges on whether the agency agrees with how you filed.
Results range from a clean close-out (no changes) to a balance due with interest and penalties—and occasionally a refund if the IRS finds you overpaid.
Disagree with the outcome? You may qualify to take the matter to the IRS Independent Office of Appeals, where a different officer—outside the original examining team—reviews your evidence and arguments.
Can you appeal an IRS audit?
Yes. You may appeal certain audit findings if you disagree and received a notice explaining appeal rights. Appeals can address disputed income, deductions, credits, penalties, or other adjustments.
Not every notice qualifies. Appeals is generally not appropriate when you agree with the tax owed but cannot afford to pay—that is typically a collection issue, not a dispute over findings. See our audit reconsideration guide for related options.
Inside the IRS Independent Office of Appeals
Appeals offers a separate review path for eligible disputes—handled by officers who were not part of the original examination team. The goal is a fair resolution before anyone ends up in court, when the facts and law allow it.
Review examination findings
List every line item you dispute, then read the examination report, notice, proposed adjustments, and any attachments side by side with your records.
Avoid a vague “I disagree” posture. Frame each issue: what the IRS decided, the reasoning behind it, and the facts or legal authority that point to a different answer.
Determine appeal grounds
Confirm your notice actually grants appeal rights and that the disputed item is something Appeals is allowed to review.
Be ready to spell out whether you are challenging the law, the facts, or both—and assemble proof that backs each point.
Submit your appeal request
Written filing is required. Disputes of $25,000 or less (tax, penalties, and interest combined per period) may qualify for a streamlined Small Case Request rather than a full formal protest; larger amounts need the longer protest format. Watch the response window in your letter—often about 30 days.
Mail the first request to the office named on your notice, not straight to Appeals. That unit may try to settle with you first; unresolved items get routed upstream.
One exception: if you are appealing on behalf of a partnership, S corporation, exempt organization, or employee benefit plan, you must file a formal written protest no matter how small the dollar amount is. The $25,000 Small Case Request option is not available for these entity types.
Prepare documentation and arguments
Documentation can be critical to an IRS appeal. Suppose the IRS disallowed $18,000 in business deductions because it determined you did not have adequate records. You may support the deductions with invoices, receipts, bank statements, contracts, mileage records, and other documentation.
Organize the evidence around the specific issues being disputed. A clear explanation connecting the documents to the relevant tax issue can make your position easier to evaluate.
Work with the Independent Office of Appeals
Appeals sits apart from Examination and Collection—its mandate is neutral review of qualifying disagreements.
Meetings are usually informal and may happen by phone, video, mail, or in person. The officer weighs both sides against the record and applicable statutes.
You can go alone or bring counsel. Attorneys, CPAs, and enrolled agents are among the practitioners authorized to speak for you in Appeals.
Negotiate a resolution
Settlements are possible when neither side has an airtight case—Appeals can split the difference instead of forcing a winner-take-all outcome.
Gray areas in the law or incomplete records often create room to compromise short of Tax Court.
Still, filing an appeal is not a guaranteed discount. Results turn on evidence quality, legal support, and how persuasively each side argues its view.
Receive the Appeals decision
The appeal may result in the IRS position being upheld, your position being accepted, or a compromise being reached. You generally have the right to receive a written response regarding the Office of Appeals’ decision.
What if you disagree with the Appeals decision?
If Appeals does not resolve the dispute, you may be able to challenge the matter in U.S. Tax Court or another appropriate court. Tax litigation involves strict rules and deadlines—review your notices carefully and consider professional guidance.
Audit lawyer vs. tax resolution professional
Disputing a tax liability and resolving one are not always the same thing.
What an IRS audit lawyer handles
Audit counsel concentrates on the merits: Was the return right? Did the IRS math check out? Were deductions denied on shaky grounds? Were facts misread? Is an appeal viable? Everything centers on the liability itself—not how to pay it.
What a tax resolution professional handles
Tax resolution generally focuses on how an established tax liability can be addressed. For example, a taxpayer who agrees that they owe $48,000 but cannot afford to pay the full balance immediately may need assistance exploring an installment agreement, Offer in Compromise, Currently Not Collectible status, penalty relief, or another applicable collection option. The appropriate solution depends on your financial circumstances and eligibility.
When tax resolution may be necessary after an audit
Picture someone who accepts a $50,000 audit adjustment. The fight over correctness is over; now the problem is cash flow and collection tools.
That pivot—from dispute to payment strategy—is why audit lawyers and resolution specialists often enter at different stages. For collection-focused help, see back tax relief.
How Valor Tax Relief can help
Valor Tax Relief helps taxpayers map their IRS situation, respond to notices, and weigh relief paths when a balance is already established—options such as an Offer in Compromise, monthly payment plan, penalty relief, or Currently Not Collectible status where rules allow.
If an audit results in tax debt that you cannot afford to pay in full, the focus may shift from disputing the liability to resolving the balance. Valor can help you evaluate your options and work toward addressing outstanding IRS tax debt.
Read how a tax lawyer negotiates with the IRS and tax lawyer vs. tax relief company for related context on when each type of professional fits your situation.
Frequently asked questions
Tax help for people who owe
Audits feel stressful, but you retain rights at every stage. Selection alone does not prove wrongdoing or guarantee a bill. When the IRS proposes changes, read the report closely and decide whether you accept each adjustment—or whether Appeals is the next step.
Keep three tracks straight: responding during the exam, challenging a final determination, and managing debt you already accept. Complex cases or large dollar amounts usually benefit from experienced guidance. Visit our FAQ hub or contact Valor for a free consultation.
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