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Author: |
Paul Winn, CLU, ChFC |
Course Length: |
Pages: 39 ||| Word Count: 19,557 ||| Review Questions: 10 ||| Final Exam Questions: 15 |
CPE Credits: |
3.0 |
IRS Credits: |
3 |
Price: |
$26.95 |
Passing Score: |
70% |
Course Type: |
Text - IRS Enrolled Agents |
Technical Designation: |
Technical |
Field Of Study: |
Taxes |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course examines the nature of IRS tax audits and how to represent clients during the process, addressing common taxpayer fears about IRS correspondence.
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Frequently Asked Questions: |
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Description: |
The possibility of receiving a letter from the IRS requesting documents for a tax audit often produces considerable taxpayer fear. However, an IRS tax audit doesn’t suggest that the IRS has found a significant error or omission on the client’s tax return. Instead, it is only a review and examination of a client’s tax return rather than an indication the IRS has identified the taxpayer as a tax cheat. Navigating an IRS Tax Audit examines the nature of tax audits, the format they may take and the reasons why any particular tax return might be chosen for audit. It then discusses taxpayer representation before the IRS and the power of attorney needed to engage in client representation. |
Usage Rank: |
21429 |
Release: |
2023 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: Auditing & Assurance Services (Course Id 1881)
Internal: Auditing - Creating a Plan for Success (Course Id 1882)
External: Income tax audit (Wikipedia overview)
External: IRS Audits
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
13-Feb-2026 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Navigating an IRS Tax Audit - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives Upon completion of this course, students should be able to:
Chapter 1
Chapter 2
Chapter 3
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Course Contents: |
Course Learning Objectives Introduction Chapter 1 – The Nature of IRS Tax Audits Chapter Learning Objectives Introduction Understanding IRS Tax Audits No Claim of Wrongdoing Not All Audits are Alike Correspondence Audits Office Audits Field Audits Statute of Limitations Anatomy of a Tax Audit Tax Audit Best Practices Summary Chapter 1 Review Questions Chapter 2 – Understanding & Minimizing IRS Tax Audit Risk Chapter Learning Objectives Introduction Why the Return was Chosen – It’s the DIF Audit Probabilities Who Undergoes Audits Minimizing Audit Triggers Avoiding the Appearance of Excess Avoiding Unreported Income Ask for an Extension Cash Businesses The Gig Economy Unearned Income Circumstances That May Trigger Audits Virtual Currency Virtual Currency Transactions Determining the Cost Basis of Virtual Currency Cost Basis of Purchased Virtual Currency Cost Basis of Virtual Currency Received for Goods or Services Cost Basis of Inherited Virtual Currency Formerly Gifted Inherited Virtual Currency Cost Basis of Virtual Currency Received as a Gift Cost Basis of Gifted Property When FMV is Less than Donor’s Adjusted Basis Cost Basis of Gifted Property When FMV is Equal to or More than Donor’s Adjusted Basis Requirement for Substantiating Documentation Cost Basis Summary Tax Treatment of Virtual Currency Received for Services Virtual Currency Received as Wages Virtual Currency Received by an Independent Contractor Tax Treatment of Virtual Currency Transactions Exchanged Virtual Currency Exchange of Virtual Currency for Other Property Tax Treatment of Charitable Gifts of Virtual Currency Reporting Virtual Currency Income, Gain or Loss Capital Gains or Loss Reporting Ordinary Income Reporting Good Records Are Key to a Successful Audit Summary Chapter 2 Review Questions Chapter 3 – Representing the Client Before the IRS Chapter Learning Objectives Introduction Client Rights in an IRS Audit Who is Permitted to Practice before the IRS Tax Preparers with Limited Practice Rights Enrolled Actuaries Enrolled Retirement Plan Agents Tax Return Preparers Professionals with Unlimited Practice Rights Other Representation Representation Based on Taxpayer Relationship Who may not Practice before the IRS Loss of Eligibility Failing to Meet Renewal Requirements Power of Attorney Acts Performed Under a Power of Attorney Substituting or Delegating Authority Agent Authorizing IRS to Disclose Returns to Others When a Power of Attorney is Required Non-IRS Power of Attorney Perfecting a Power of Attorney Processing a Non-IRS Power of Attorney Common Reasons for IRS Rejection of a Power of Attorney Signatures and/or Signature Dates Missing Lack of Specificity as to Authorized Acts When the Matter isn’t a Tax Matter Civil Penalties Filing and Updating a Power of Attorney Retention/Revocation of Prior Power(s) of Attorney Revocation of Power of Attorney/Withdrawal of Representative Preparing IRS Form 2848 Taxpayer Information – Line 1 The Individual Client Clients Filing 1040 Schedule C Clients Filing a Joint Return Corporate, Partnership or Association Clients IRS Employee Retention Credit Voluntary Disclosure Program Summary Chapter 3 Review Questions Glossary |
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