We typically charge on an hourly basis for IRS audit representation and related cases. This is because it’s very difficult to predict how much time will be required for any given audit. There are a number of factors that impact how long an audit will take to resolve, including the quality of your supporting documentation and the level of scrutiny given to your return by the auditor.
Here are some guidelines for how much IRS audit defense usually costs:
- Simple Audits: For a simple audit, the cost is typically $2,000 to $3,000. A simple audit is one that does not involve a Schedule C business or rental property. It usually focuses on Schedule A items, such as unreimbursed employee expenses or charitable contributions.
- Moderate Audits: For a moderately complex audit, the cost is typically $3,000 to $6,000. A moderately complex audit is one that focuses on a Schedule C business or rental property. It typically involves substantiation for business expenses and unreported income.
- Complex Audits: For a complex audit, the cost is typically $7,500+. This usually involves a small to medium size business and may have issues related to business expenses, unreported income, or payroll issues (such as workers misclassified as independent contractors).
- Appeals: Our fees for going through IRS appeals typically range from $5,000 to $10,000.
- US Tax Court: Our fees for taking a case to US Tax Court typically range from $7,500 to $15,000.
For IRS audits and related cases, we generally request an upfront retainer of $1,500 to begin working on a case. Additional retainer payments will be required as the case progresses and legal fees are billed.
If the costs outlined above are more than you are willing to pay, you might consider our self-help courses that will teach you how to do any of the above listed services by yourself.
Click Here is more information on our self help courses.