CHECKLIST: How to Represent Clients in 1040 Audit and CP2000 Issues

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By Michael Rozbruch
Roz Strategies

The IRS is aggressively going after taxpayers to recoup some of their lost revenue (lost revenue to the tune of $385 billion per year!) which means our clients are under scrutiny now more than ever.

The question is, how do we fight back and effectively represent our clients in a 1040 audit and CP2000 issues?

First, are you qualified to represent your client in an audit?

When you reach the audit level, 1040 or otherwise, you must have a valid Power of Attorney (Form 2848). Some practitioners are what we call Annual Filing Season (AFS) practitioners. Any AFS practitioner who is not an attorney, CPA, or EA, is allowed to sign the Power of Attorney. So even though you may have signed the Tax Information Authorization, Form 8821, that doesn’t mean you can represent the taxpayer before exams. You must have a valid Power of Attorney.