Preparation for the tax audit is everything. Both the representative and the taxpayer have much to do before they ever set foot into the IRS office. The entire tone of the audit will depend on the degree of preparation by the tax audit lawyer. If there is sloppiness or ignorance on the part of the taxpayer’s representative, it will paint a big target on the taxpayer’s back.
Therefore, before the audit, all supporting records and other substantiating documentation should be rounded up, studied, and digested so that they can be organized for quick production to the revenue agent during the audit interview. What about original evidence that is unavailable to support the taxpayer’s position–what is the next best thing? Let’s say checks or purchase invoices have been mislaid or destroyed that would have proven certain purchases, cost of goods sold. In such circumstances the taxpayer and his tax lawyer must make every effort to obtain these same items from the taxpayer’s bank and from the supplier itself. Photocopies of bank statements and of the checks themselves are easily available from the bank. Although as a general rule information and material should never be volunteered during the tax audit interview, the movement of the case and control of its parameters can be held by the taxpayer’s representative if he or she maintains a superior knowledge and understanding of the facts and the documentation that is key to the audit.