Receiving an audit notice from the IRS or the California Franchise Tax Board is stressful, but the right professional can make a significant difference in how the process unfolds. Understanding who is qualified to represent you — and how to find them — is a critical first step.
Not All Tax Preparers Can Represent You
Representation rights before the IRS are governed by IRS Circular 230. Only certain professionals have unlimited representation rights, meaning they can represent you at any examination, collection proceeding, or appeal — not just for returns they prepared themselves:
- Enrolled Agents (EAs): Licensed by the IRS specifically for tax representation. Many EAs focus exclusively on audit defense and IRS resolution work.
- CPAs: California-licensed CPAs with an active license have unlimited representation rights before the IRS.
- Tax Attorneys: Particularly valuable for complex cases involving potential criminal liability or large disputed amounts.
Other preparers — including CTEC-registered preparers — have limited or no representation rights before the IRS for returns they did not prepare.
FTB Audits Require California-Specific Knowledge
California FTB audits follow different procedures than IRS audits. Look for a professional with documented experience handling FTB correspondence and examinations. The FTB audits residency, income sourcing, and conformity with California-specific adjustments to federal returns — areas where general federal experience may not be enough.
How to Find an Audit Representative
- The National Association of Enrolled Agents (NAEA) offers a directory at naea.org to find EAs by location and specialty.
- The California Society of CPAs (CalCPA) referral service can connect you with CPAs who handle audit representation.
- State Bar of California’s Certified Tax Law Specialists can be searched at calbar.ca.gov.
Questions to Ask Before Hiring an Audit Representative
- Have you handled audits of the same type as mine (correspondence, office, field)?
- Do you have experience with FTB audits specifically, or primarily federal?
- What is your typical fee structure for audit representation — hourly, flat, or retainer?
- Can you provide references from prior audit clients?
Verify Before You Engage
Confirm that any professional you hire for audit representation holds a current, active credential. Use the IRS Office of Enrollment contact form for enrolled agents, the California Board of Accountancy license search at dca.ca.gov/cba, or the California State Bar for attorneys. A disciplinary history is also worth reviewing before you share sensitive financial documents.
Official sources referenced: IRS.gov, California Board of Accountancy (dca.ca.gov/cba), California Franchise Tax Board (ftb.ca.gov). Not reviewed by a credentialed tax professional.