IRS AUDIT DEFENSE

An audit is a record-building exercise. Everything that follows it — Appeals, Tax Court, penalties — is decided on the record the examination produces, and that record is largely built by the taxpayer’s own responses. This is the stage at which representation changes outcomes most and costs least.

JD · CPA Attorney and accountant
30+ Years in tax practice
U.S. Tax Court Admitted to practice
FL · MA Bar admissions
1 Signature on every return

An audit is decided by the record you hand over.

Every answer becomes evidence at Appeals and in court. Bring counsel in before the file is built, not after.

Scheduling does not create an attorney-client relationship. No such relationship exists until the firm has run a conflicts check and both sides have signed a written engagement agreement.

The tax controversy resolution arc, showing planning, notice, examination, IRS Appeals, United States Tax Court and appellate review, with a collection branch and resolution available at every stage.
WHAT THE FIRM HANDLES
Authorities routinely at issue §469 passive activity §704(b) allocations §704(d) · §752 basis §1031 exchanges §6662 accuracy §7525 privilege Kovel
1

Every examination type

correspondence, office, and field, individual and business.

2

Information document requests

what is responsive, what is not, what is privileged, and what a production quietly concedes.

3

Privilege review before production

including Kovel arrangements where accounting analysis needs to sit inside the privilege.

4

Direct engagement with the agent

so the taxpayer is not the one answering questions under examination.

5

Method and substantiation

the two issues that decide most examinations, and the two most often conceded by accident.

6

Penalty exposure

assessed at the outset, not after the adjustment has already landed.

REAL ESTATE AND PARTNERSHIP EXAMINATIONS

Real estate is the firm’s core asset class, and the issues that arise on examination are the same ones the firm addresses in planning: passive activity classification under section 469, partnership allocations under section 704(b), basis under sections 704(d) and 752, depreciation method and recovery period, like-kind exchange treatment under section 1031, and self-employment tax exposure for limited partners and LLC members. Familiarity with these rules from the planning side translates directly into a faster and better-documented defense.

PRIVILEGE

Communications with an attorney are privileged. The section 7525 practitioner privilege available to accountants is narrower — it fails in criminal matters and in state proceedings, and does not extend to return preparation. Where accounting analysis is needed inside the privilege, the firm engages it under a Kovel arrangement so that the work is performed for the law firm rather than alongside it.

The detailed procedure is set out in The Exam Station.

Everything that follows an audit is decided on the record the audit produced.

HOW AN ENGAGEMENT BEGINS
Step one

Book a free consultation

Thirty minutes, no charge. Bring the notice — we read it together on that call.

Step two

The deadline is identified

Which notice it is, what it asserts, and which forums are still open behind it.

Step three

Conflicts check and written engagement

Scope and fee agreed in writing before any work begins.

HOW A CONTROVERSY RESOLVES
Step four

The firm takes over

Correspondence with the Service runs through the firm. You stop answering.

Step five

The position is built and pressed

Records, authority, and the argument — pressed at the earliest stage that will take it, because that is the cheapest place to win.

Step six

Resolution

Closed at examination, settled at Appeals on the hazards, or tried. The firm does not hand the file to anyone to reach the last of those.

An examination is easier to defend early than to unwind late. Contact the firm through the contact page or call (561) 529-5873. Representative engagements are described on the Experience page.

© Donovan Legal PLLC. 2026. | DISCLAIMER
Click Here To Call Donovan Legal