audit defense desk

Got a 2050C? Don't
panic. Forward it here.

If you're on retainer with us and the IRS sends an audit notice, we represent you end-to-end — including CPA-attorney joint engagement when the matter requires privileged communication. 98.4% of our defenses close with zero additional tax owed.

Begin retainer Forward a letter →
98.4%
audit-survival rate
$0
avg. additional tax owed
240+
cases defended
if you receive an irs letter

What to do, in order.

// step_01

Don't reply yourself.

Even acknowledging the letter creates a representation record. Forward it unopened.

first 5 minutes
// step_02

Forward to us.

Email a photo of the letter to audit@yourbusiness.com — we triage within 4 hours.

first hour
// step_03

File power of attorney.

Form 2848 lets us speak directly to the IRS on your behalf. We send it to you for signature.

day 1–2
// step_04

Build defense file.

Work-paper bundle, transaction-hash receipts, FMV oracle records, classification rationale.

day 3–14
// step_05

Respond to IRS.

Formal written response & supporting evidence packet. We track every IRS reply.

within 30 days
irs letter type guide

Twelve letter codes, decoded.

CodeMeaningSeverityHow we respond
CP2000Computer-matched discrepancy — your return doesn't match a 1099 the IRS received.LowReconcile the difference. Often a missing exchange 1099.
2050CNotice of examination — your return is being audited.MediumPower of attorney + work-paper packet within 30 days.
5071CIdentity verification — IRS suspects identity theft.LowVerify identity through ID.me. We coach the call.
566-SLetter examining specific Schedule D transactions.MediumProvide cost-basis substantiation per transaction.
52530-day proposed deficiency letter — IRS computed additional tax.HighFormal protest within 30 days or accept assessment.
3219Statutory Notice of Deficiency — your last chance to petition Tax Court.HighFile Tax Court petition or pay. CPA-attorney joint engagement.
CP2501Underreporter inquiry — pre-CP2000 outreach.LowSubstantiate the items in question by mail.
SBSESmall Business / Self-Employed division audit notification.MediumSchedule C audit defense — document substantiation.
FTB-AState (CA Franchise Tax Board) audit letter.MediumState-specific response. Multi-state nexus review.
CP14Balance due notice — assessment was finalized; pay or set up plan.MediumPenalty abatement request if first-time, then payment plan.
CP08You may be eligible for additional refund (good news).LowVerify qualification, file Form 1040X if applicable.
3176CFrivolous return penalty — IRS believes return is frivolous.HighImmediate response within 30 days or face $5K penalty.
retainer subscription

Sleep through tax season.

Audit defense isn't an emergency line item — it's a subscription. Pay $1,200/year, never touch a 2050C envelope yourself again. Available add-on for any service tier.

Retainer covers federal and state representation for any return we filed. CPA-attorney joint engagement included for matters requiring privileged communication.

// retainer is contingent on us preparing your return — we don't defend returns we didn't reconcile.

Add retainer to my plan
audit defense retainer

Annual subscription

$1,200 / year
Per filer. Add-on to any service tier. Included free with Institutional.
  • Power-of-attorney filing for the IRS
  • Federal & state representation
  • All 12 audit letter codes covered
  • Work-paper packet preparation
  • Direct CPA-on-call (4-hour response)
  • CPA-attorney joint engagement available
  • Tax Court petition filing if escalated
  • Penalty abatement requests
  • Multi-year coverage on subsequent renewals
  • $0 additional cost regardless of complexity
Begin retainer →
already received a letter? · forward now

The first 24 hours matter most.

If you've received any IRS or state letter, forward it to us today. The earlier we file power of attorney, the more options stay open. Free triage even if you're not yet a client.

Email audit@yourbusiness.com