Tax Audit Defense Calculator
Calculate defense strategy and likelihood of success for audit disputes.
Defense Context
Success Likelihood
Adjustment:$ 15000
Stage:examination
Success Rate:40%
Cost Estimate:$ 0
UNCERTAIN - Moderate documentation and IRS position
Defense Options
| Stage | Strategy | Action | Deadline | Success |
|---|---|---|---|---|
| Examination | Provide Documentation | Submit supporting documents to examiner | During audit | Moderate |
| Examination | Examiner Meeting | Meet with examiner to explain position | During audit | Moderate |
| Examination | Manager Conference | Request meeting with examiner manager | Before 30-day letter | Moderate |
| 30-Day Letter | File Protest Letter | Submit written protest to IRS Appeals | 30 days from letter | Moderate to High |
| 30-Day Letter | Appeals Conference | Request Appeals Office conference | 30 days from letter | Moderate |
Potential Outcomes
| Outcome | Description | Likelihood | Financial Impact |
|---|---|---|---|
| Full Victory | Adjustment fully reversed | 20% | $ 0 |
| Partial Victory | Some adjustment reduced | 40% | $ 7500 |
| Settlement | Negotiated partial payment | 30% | $ 10500 |
| Full Adjustment | IRS position upheld | 60% | $ 15000 |
Recommendation
Examination ongoing. Gather additional supporting documents. Consider professional representation.
Audit Defense Key Points
- Respond timely to all notices
- 30-day letter: Appeals deadline
- 90-day letter: Tax Court deadline
- Documentation is critical
- Manager conference before Appeals
- Appeals: informal process
- Tax Court: formal litigation
- Professional help for complex cases
- FTA for first-time penalties
- Reasonable cause argument