IRS Audit Monitoring

Service description

Monitor a business's IRS account for either code changes input by the IRS that indicate forthcoming audits, tax liens, or other adverse IRS actions. The service also monitors certain taxpayer submissions to the IRS to check for irregularities to be corrected (e.g. missed payroll tax filings).

Benefit

Monitoring reads the IRS’s own account transcript codes, which can change ahead of audits, liens, and other adverse actions — notice before the letter arrives.

ROI

It also reviews what has been filed against your IRS account, so irregularities — a missed payroll tax deposit, for example — surface while they are still small. Early detection keeps small issues from becoming expensive problems and preserves your window to respond within IRS deadlines.

When you benefit

Ongoing — monitoring runs continuously once it is set up, and each alert is reviewed as it arrives; there is no annual cycle to time.

What it costs

Typically flat fee.

When you pay

Typically paid upfront for monitoring over a given time period.

Your commitment

Business signs an IRS Form 2848, usually prepared by the provider.

Documents to gather

• Your EIN confirmation letter (CP 575) or other EIN verification
• Your most recently filed federal return
• The Partnership Representative's details, if the business is subject to the BBA
• Any existing IRS authorization forms (2848 or 8821)

Risks to know

None. The Form 2848 nor the monitoring of a business's IRS increases any risk of adverse action from the IRS or otherwise flag the account for any additional scrutiny.

When risks arise

From the first transcript read onward, whenever the IRS posts a change to the account.

The process

Business provides service provider the necessary information to complete IRS Form 2848. Service provider prepares the IRS Form 2848 and the business signs it. IRS Form 2848 is submitted to the IRS to give service provider access to business's IRs tax account for monitoring.

Common industries

All.

Further research

(i) Reads IRS transcripts pulled from your IRS.gov tax account (ii) IRS Transcript Codes