TREA | IRS & NYS Audit Representation

IRS & New York State Audit Representation

Few things create more stress than receiving an IRS or New York State audit notice.

Whether the audit is conducted by correspondence, in an office, or in the field, audits should never be handled without professional representation.

Auditors are trained to protect the government’s interests — not yours. Effective audit defense requires structure, documentation, and procedural control.

TREA represents taxpayers facing IRS, New York State, and New York City audits, using a disciplined, evidence-driven process.

Types of Audits We Handle

Common audit issues include:

Underreported income
Business expense substantiation
Vehicle and mileage deductions
Rental activity and real estate losses
Schedule C claims
Real estate professional status
EITC / CTC documentation

Payroll audits often focus on:

These audits may result in personal liability if not handled properly.

Common among:

Restaurants and food service businesses
Retail stores and boutiques
Salons and barbershops
Bodegas and convenience store
Auto shops
Delivery-platform businesses (Uber Eats, DoorDash, Grubhub)

Frequent audit issues include:

New York State is among the most aggressive jurisdictions for residency audits.

Auditors evaluate:

Residency audits require organized, compelling, and contemporaneous evidence.

Why Audits Should Not Be Handled Alone

Without professional representation:

Auditors may expand audit scope through questioning
Missing records are assumed to indicate underreporting
Verbal statements can be used against the taxpayer
Estimates may be applied when documentation is incomplete
Audits may expand to additional years

With representation:

You do not speak directly with the auditor
Information is provided strategically, not casually
Documentation is organized to audit standards
Rights are protected
Assessments are often reduced significantly

Why Clients Choose Our Audit Representation Process

Former NYS auditor insight into audit methodology

CPA-level documentation and financial accuracy standards

Focus on IRS and NYS enforcement matters

Structured, detail-driven advocacy

Experience reducing assessments and penalties

Clear communication with taxing authorities

Audit Defense Using the Triple-S Framework

Study → Satisfy → Solve

PHASE 1 - STUDY

(Audit Risk & Exposure Review)

We analyze:

Audit notices and scope
Years at risk
IRS or NYS authority and procedures
Income and expense records
POS data (when applicable)
Payroll records
Bank statements
Prior filings

This phase identifies weaknesses before the auditor does.

Not every case proceeds beyond Phase 1.

PHASE 2 - SATISFY

(Compliance & Documentation Preparation)

When required, we:

Correct inconsistencies
Reconstruct missing records
Organize proof to audit standards
Prepare reconciliations and schedules
POS data (when applicable)
Payroll records
Bank statements
Prior filings

Preparation determines outcomes.

PHASE 3 - SOLVE

(Representation & Resolution)

Handle all communication with auditors
Attend meetings on your behalf
Submit organized documentation
Challenge improper assumptions
POS data (when applicable)
Reduce disallowed items where supported
Negotiate penalty relief
Bring audits to closure efficiently

When necessary, we pursue:

Special Focus: NYS Patrol (Walk-In) Audits

NYS “Patrol” auditors may enter a business without notice, often targeting:

Restaurants

Convenience stores

Retail shops

These audits move quickly and can produce inflated assessments.

See our dedicated NYS Patrol Audit Defense page.

Who This Page Is For

Individuals receiving IRS or NYS audit notices
Self-employed taxpayers
Real estate investors
Business owners
Gig-economy workers
Anyone facing an active audit
Self-employed taxpayers

How to Get Started

Audits escalate quickly. The first step is determining whether a full review is appropriate.