IRS & New York State Audit Representation
- Income Tax
- Sales Tax
- Payroll Tax
- Residency
- Correspondence
- Field Audits
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
- IRS Income Tax Audits
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 Tax Audits (IRS & NYS)
Payroll audits often focus on:
- Worker classification issues
- Unreported wages
- Late or missing payroll filings
- Trust fund exposure
- NYS-45 compliance issues
These audits may result in personal liability if not handled properly.
- New York State Sales Tax Audits
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:
- POS discrepancies
- Estimated assessments
- Credit card vs. cash mismatches
- Gross vs. net delivery revenue
- Missing invoices or Z-tapes
- New York State Income Tax & Residency Audits
New York State is among the most aggressive jurisdictions for residency audits.
Auditors evaluate:
- Domicile
- Days spent in New York (statutory residency)
- Home ownership and usage
- Lifestyle indicators
- Driver’s license, voter registration, and similar ties
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)
We
- 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:
- Audit reconsideration
- Appeals
- Payment arrangements or hardship relief
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.
Client Stories
Get Clarity Before You Commit
