IRS Audits & Appeals

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Receiving that first IRS audit notice can trigger immediate anxiety—even when your tax returns are completely accurate. The reality is that audits aren’t just about verifying numbers you reported.
Revenue agents systematically cross-reference everything against third-party data, dig through years of financial records, and they’re specifically trained to identify problems that could increase your tax liability.

Here’s what catches most taxpayers off guard: honest, compliant taxpayers can still face devastating assessments because of documentation gaps, timing discrepancies, or simply because they couldn’t explain a legitimate transaction to the auditor’s satisfaction. The IRS uses statistical models to flag returns that deviate from “norms” for similar taxpayers—and once selected, the examination process can expand across multiple years if auditors suspect significant underreporting.

Field audits are the most comprehensive—IRS agents come to your home, business, or accountant’s office to conduct an in-person examination of your records. These make up less than 3% of all audits but tend to focus on high-income returns and complex business situations. Without experienced legal representation, taxpayers often make critical mistakes during these examinations that can’t be undone—like volunteering information the IRS didn’t request or failing to assert their procedural rights.

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What is an IRS Tax Audit?

The IRS audit process isn’t as mysterious as many people think, but it’s definitely more serious than most taxpayers realize. When the agency decides to examine a return, they’re not just double-checking math—they’re questioning every significant item and looking for patterns that suggest broader compliance problems.

Audits get triggered by everything from computer algorithms that flag unusually high charitable deductions to disgruntled ex-employees who call the IRS hotline. Taxpayers might have done nothing wrong and just hit the audit lottery, or maybe something on their return looked suspicious to IRS computers. How someone got selected doesn’t really matter—what matters is knowing how to handle what comes next.

The firm’s audit defense blog covers technical details, but here’s the reality: how taxpayers handle the first 30 days after receiving that notice often determines whether they’re looking at a minor adjustment or a major financial disaster.

IRS Audits & Appeal Services

Every audit starts the same way at Mixon Tax Law: assume the IRS will find something wrong, and work backwards from there. That might sound pessimistic, but it’s actually the most effective defense strategy developed over years of practice.

The key involves getting ahead of IRS questions before they ask them. Phillip spends hours going through client records looking for the same red flags that will catch a revenue agent’s attention. When potential issues surface, the firm prepares explanations and gathers supporting documentation before the IRS even knows there might be a problem.

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Individual Income Tax Audits

IRS audits often begin with an Information Document Request (IDR), asking for tax returns, bank records, receipts, and supporting documentation. Mixon Tax Law assists clients in gathering proper documentation, managing communications with IRS Revenue Agents, and limiting exposure to additional tax liabilities or penalties. Proper representation during individual audits protects taxpayers from making statements that could expand the examination scope.
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Business Tax Audit Defense

Business audits involve complex issues including income reporting, deduction substantiation, and employment tax compliance. These examinations can drag on for months, sometimes over a year. The firm handles everything from organizing records to final negotiation, ensuring the audit doesn’t become a bigger problem than the original tax issues. The last thing any business needs is an IRS examination disrupting operations.
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Partnership Tax Audits (BBA Rules)

Partnerships facing audit under the Bipartisan Budget Act of 2015 (BBA) deal with unique compliance requirements and potentially significant financial exposure. Mixon Tax Law assists in managing partnership representative designations, handling imputed underpayments, and navigating partnership-level assessments effectively. These rules fundamentally changed how partnership audits work, creating traps for unwary business owners.
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Estate and Gift Tax Audits

Estate and gift tax audits can be complex and emotionally difficult, often involving asset valuation disputes, privately held business interests, or charitable beneficiary issues. The firm works closely with fiduciaries and heirs to protect family interests and ensure compliance during these sensitive proceedings. These audits require both technical expertise and diplomatic handling of family dynamics.
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IRS Return Preparer Initiative Defense

The IRS has intensified enforcement efforts against fraudulent return preparers through its Criminal Investigation Return Preparer Program (RPP). If tax professionals find themselves under investigation or receive IRS notices regarding their practice, Mixon Tax Law can help defend professional reputations and limit potential civil or criminal penalties.
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Appeals Process Representation

When audit results are unfavorable, the Appeals Office often provides the best opportunity for reasonable resolution. The appeals process has produced some of the firm’s biggest wins. One case involved an examining agent demanding $300,000 in additional tax, ultimately settled at Appeals for $15,000. Success requires knowing how to present cases to people who actually have the power to make reasonable deals.
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Correspondence Audit Management

Mail audits may seem simple, but responding incorrectly can escalate minor issues into major problems. These examinations seem straightforward until one wrong response turns them into full-blown examinations. The firm handles all paperwork and correspondence, ensuring the IRS receives what they need to close the file without accidentally triggering a deeper dive into tax situations.
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Field Audit Representation

Field audits represent the most intensive IRS examinations, often conducted at business locations or accountant offices. Mixon Tax Law manages the entire process, controls information flow to the examining agent, and protects client rights throughout the extensive review process. Field audits require careful management to prevent scope expansion and protect taxpayer interests.

Working with experienced legal representation can make all the difference in how audits unfold and the financial impact they ultimately have on taxpayer situations.

IRS Audits & Appeal Services

Every audit starts the same way at Mixon Tax Law: assume the IRS will find something wrong, and work backwards from there. That might sound pessimistic, but it’s actually the most effective defense strategy developed over years of practice.

The key involves getting ahead of IRS questions before they ask them. Phillip spends hours going through client records looking for the same red flags that will catch a revenue agent’s attention. When potential issues surface, the firm prepares explanations and gathers supporting documentation before the IRS even knows there might be a problem.

Mixon Tax Law Individual Income Tax Audits icon

Individual Income Tax Audits

IRS audits often begin with an Information Document Request (IDR), asking for tax returns, bank records, receipts, and supporting documentation. Mixon Tax Law assists clients in gathering proper documentation, managing communications with IRS Revenue Agents, and limiting exposure to additional tax liabilities or penalties. Proper representation during individual audits protects taxpayers from making statements that could expand the examination scope.
Mixon Tax Law Business Tax Audit Defense icon

Business Tax Audit Defense

Business audits involve complex issues including income reporting, deduction substantiation, and employment tax compliance. These examinations can drag on for months, sometimes over a year. The firm handles everything from organizing records to final negotiation, ensuring the audit doesn’t become a bigger problem than the original tax issues. The last thing any business needs is an IRS examination disrupting operations.
Mixon Tax Law Partnership Tax Audits icon

Partnership Tax Audits (BBA Rules)

Partnerships facing audit under the Bipartisan Budget Act of 2015 (BBA) deal with unique compliance requirements and potentially significant financial exposure. Mixon Tax Law assists in managing partnership representative designations, handling imputed underpayments, and navigating partnership-level assessments effectively. These rules fundamentally changed how partnership audits work, creating traps for unwary business owners.
Mixon Tax Law Estate and Gift Tax Audits icon

Estate and Gift Tax Audits

Estate and gift tax audits can be complex and emotionally difficult, often involving asset valuation disputes, privately held business interests, or charitable beneficiary issues. The firm works closely with fiduciaries and heirs to protect family interests and ensure compliance during these sensitive proceedings. These audits require both technical expertise and diplomatic handling of family dynamics.
Mixon Tax Law IRS Return icon

IRS Return Preparer Initiative Defense

The IRS has intensified enforcement efforts against fraudulent return preparers through its Criminal Investigation Return Preparer Program (RPP). If tax professionals find themselves under investigation or receive IRS notices regarding their practice, Mixon Tax Law can help defend professional reputations and limit potential civil or criminal penalties.
Mixon Tax Law Appeals Process Representation icon

Appeals Process Representation

When audit results are unfavorable, the Appeals Office often provides the best opportunity for reasonable resolution. The appeals process has produced some of the firm’s biggest wins. One case involved an examining agent demanding $300,000 in additional tax, ultimately settled at Appeals for $15,000. Success requires knowing how to present cases to people who actually have the power to make reasonable deals.
Mixon Tax Law Correspondence Audit Management icon

Correspondence Audit Management

Mail audits may seem simple, but responding incorrectly can escalate minor issues into major problems. These examinations seem straightforward until one wrong response turns them into full-blown examinations. The firm handles all paperwork and correspondence, ensuring the IRS receives what they need to close the file without accidentally triggering a deeper dive into tax situations.
Mixon Tax Law Field Audit Representation icon

Field Audit Representation

Field audits represent the most intensive IRS examinations, often conducted at business locations or accountant offices. Mixon Tax Law manages the entire process, controls information flow to the examining agent, and protects client rights throughout the extensive review process. Field audits require careful management to prevent scope expansion and protect taxpayer interests.

Working with experienced legal representation can make all the difference in how audits unfold and the financial impact they ultimately have on taxpayer situations.

Frequently Asked Questions

Audit Process & Procedures

How does the IRS pick who gets audited?
Every tax return goes through computer screening that looks for items that stand out. Like if someone claims teacher status while reporting $15,000 in unreimbursed business expenses, or donated half their income to charity, computers flag it as worth closer examination. Most flagged returns are fine, but they still get audited. High earners get audited more often, and certain businesses like cash-intensive operations are always on IRS radar. Sometimes it’s just bad luck.
What should someone do immediately after receiving an audit notice?
Stop everything and contact legal representation before doing anything else. Too many cases worsen significantly when taxpayers attempt handling initial responses themselves and accidentally make situations much worse. That first letter might look simple, but how taxpayers respond sets the tone for the entire audit.
How long does the audit process typically take?
Timeline depends on complexity and record organization. Simple mail audits might wrap up in a few months with proper responses. Business audits can drag on for over a year, especially if agents keep finding new issues to examine. Better preparation upfront means faster resolution.
Can the IRS expand audits beyond the original tax year?
Unfortunately, yes, and this is where situations can get scary. When agents find significant underreporting or patterns of non-compliance, they’ll often expand to examine additional years. Effective representation works hard to keep audits focused on original scope, but sometimes expansion proves unavoidable when serious problems exist.

Documentation & Evidence

What records should taxpayers provide to the IRS?
Only exactly what they ask for, nothing more. Clients sometimes volunteer extra documents thinking it will help their case, only to create new problems the IRS never would have found otherwise. Experienced attorneys review every document request carefully and ensure complete answers without opening new issues.
What if taxpayers can't find some requested records?
Missing paperwork makes representation tougher, but it’s not a death sentence for cases. Attorneys become detectives—pulling together bank statements, cancelled checks, credit card records, anything that shows what really happened. The IRS wants logical explanations, and these can usually be built from available pieces.
How important is having organized records?
Extremely important. Disorganized records make legitimate deductions look suspicious in countless cases. When information gets presented in logical, professional ways, it builds credibility with examining agents. Poor organization makes taxpayers look like they’re hiding something, even when they’re not.
Can the IRS obtain bank records without asking taxpayers?
Banks hand over records to the IRS readily. They don’t want the headache of fighting the government. The good news—the IRS still has to justify what they’re requesting. If they’re being too aggressive and want records that have nothing to do with cases, attorneys can file objections. Sometimes it works, sometimes it doesn’t.

Legal Representation & Rights

Should taxpayers get an attorney, or can their accountant handle audits?
CPAs know technical details, but only attorneys can invoke attorney-client privilege or represent clients in Tax Court if situations escalate. Phillip’s CPA background means clients get both skill sets. Plus, if there’s any hint of criminal issues, taxpayers absolutely need attorney representation from day one.
What rights do taxpayers actually have during audits?
More than most people realize. Taxpayers can have representation present at all meetings, can limit scope to what’s in the original notice, and don’t have to answer questions beyond what’s legally required. The IRS must explain what they’re looking for and why. Most importantly, taxpayers can appeal any result they don’t like.
Do taxpayers have to meet directly with IRS agents?
Absolutely not, and legal counsel usually recommends against it. Taxpayers think they can explain away problems, but agents are trained interrogators and everything said can be used against them later. Attorneys handle all IRS communications—that’s what legal representation provides.
What happens when taxpayers disagree with audit findings?
Multiple options exist. Appeals is usually the next step, and frankly, it’s often where the best results get achieved. Appeals officers have more flexibility to settle cases reasonably. If that doesn’t work, cases can go to Tax Court. Most cases don’t go that far, but knowing the option exists provides important leverage.

Outcomes & Consequences

What are realistic audit outcomes?
Most audit clients end up paying something—that’s statistical reality. But we’re not talking about losing homes unless serious compliance problems exist. Some cases result in “additional tax” of a couple hundred dollars, while others uncover overlooked deductions worth more than initially owed.
How can penalties and interest be reduced?
Penalty abatement is often possible when attorneys can show reasonable cause for any errors, or if this is the taxpayer’s first significant compliance problem. Interest is harder to address since it’s required by law, but attorneys can sometimes negotiate reduced settlement amounts that effectively lower total payments.
What if audits turn up something that looks criminal?
That’s when everything changes and cases need to shift into criminal defense mode immediately. Never, ever discuss cases further without criminal representation. Background in both civil and criminal tax matters helps attorneys spot these issues early and take the right protective steps.

Why Choose Mixon Tax Law for IRS Audit Defense

Audit defense is equal parts accounting knowledge and courtroom strategy. Effective representation requires understanding technical tax issues while knowing how to deal with IRS personnel and protect client rights. Learn more about Phillip’s background to see why that combination has worked so well for clients over the years.

His CPA license means he can dig into numbers and understand complex transactions in ways that most attorneys can’t. The legal training is what enables pushing back against unreasonable IRS positions and taking cases to court when necessary. It’s a combination rarely found, and it makes a real difference in audit outcomes.

Here’s what Mixon Tax Law brings to audit cases that’s different from other Houston tax professionals:

Dual Professional Credentials

CPA expertise combined with legal advocacy skills provides comprehensive audit defense capabilities unavailable from single-credential practitioners.

Previous Firm Experience

Background at a previous employer firm provides insight into sophisticated financial analysis and documentation standards expected in complex tax matters.

Direct Attorney Access

Clients work directly with Phillip throughout the audit process, not junior staff or paralegals. This ensures consistent strategy and immediate expert guidance when situations develop.

Litigation Experience

Ready to take cases to Tax Court when settlement negotiations fail to achieve reasonable results. This willingness to litigate strengthens negotiating positions during administrative proceedings.

Houston Market Knowledge

Established relationships with local IRS personnel and understanding of regional audit patterns provides strategic advantages in case management.

For clients facing appeals after unfavorable audit results, Mixon Tax Law’s experience as a Houston IRS appeals lawyer provides additional value. Appeals Officers have settlement authority that examining agents don’t possess, and knowing how to present cases effectively in this environment often determines final outcomes.

Experienced Tax Appeals Representation

Our commitment doesn’t end with the audit report—when results are unfavorable, we continue fighting through IRS Appeals and, if necessary, Tax Court to challenge incorrect assessments and protect your interests.
Talk to an expert today

Why Choose Mixon Tax Law for IRS Audit Defense

Audit defense is equal parts accounting knowledge and courtroom strategy. Effective representation requires understanding technical tax issues while knowing how to deal with IRS personnel and protect client rights. Learn more about Phillip’s background to see why that combination has worked so well for clients over the years.

His CPA license means he can dig into numbers and understand complex transactions in ways that most attorneys can’t. The legal training is what enables pushing back against unreasonable IRS positions and taking cases to court when necessary. It’s a combination rarely found, and it makes a real difference in audit outcomes.

Here’s what Mixon Tax Law brings to audit cases that’s different from other Houston tax professionals:

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Dual Professional Credentials

CPA expertise combined with legal advocacy skills provides comprehensive audit defense capabilities unavailable from single-credential practitioners.
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Previous Firm Experience

Background at a previous employer firm provides insight into sophisticated financial analysis and documentation standards expected in complex tax matters.
checkmark icon

Direct Attorney Access

Clients work directly with Phillip throughout the audit process, not junior staff or paralegals. This ensures consistent strategy and immediate expert guidance when situations develop.
checkmark icon

Litigation Experience

Ready to take cases to Tax Court when settlement negotiations fail to achieve reasonable results. This willingness to litigate strengthens negotiating positions during administrative proceedings.
checkmark icon

Houston Market Knowledge

Established relationships with local IRS personnel and understanding of regional audit patterns provides strategic advantages in case management.

For clients facing appeals after unfavorable audit results, Mixon Tax Law’s experience as a Houston IRS appeals lawyer provides additional value. Appeals Officers have settlement authority that examining agents don’t possess, and knowing how to present cases effectively in this environment often determines final outcomes.

checkmark icon

Experienced Tax Appeals Representation

Our commitment doesn’t end with the audit report—when results are unfavorable, we continue fighting through IRS Appeals and, if necessary, Tax Court to challenge incorrect assessments and protect your interests.
Talk to an expert today

Client Success Stories

Results speak louder than promises. Over the years, Mixon Tax Law has helped numerous individuals and businesses navigate complex audit situations and achieve favorable outcomes. Read detailed client testimonials to understand the level of service and results clients can expect.

Meet Your IRS Audit Defense Attorney

Phillip Mixon is probably one of the few attorneys in Houston who actually looks forward to IRS audits. Not because they’re fun—they’re stressful for everyone involved—but because he’s developed a system that works, and he likes the challenge of outmaneuvering revenue agents who think they have all the advantages.

His previous employer’s firm background taught him to think like the IRS thinks. When handling merger and acquisition work at that firm, anticipating every possible tax challenge to complex transactions was required. That same mindset applies perfectly to audit defense—assume they’re going to find problems, and prepare responses before they even ask the questions.

Check out the background page for the full story, but here’s the short version: Phillip has been on both sides of complex tax issues, and that experience helps him protect clients more effectively than attorneys who’ve only practiced on one side.

Meet Philip
Mixon Tax Law Attorney Phillip Mixon Headshot

Get Started with Your IRS Audit & Appeal Defense

Time is critical when dealing with IRS audits. Don’t let procedural deadlines pass while trying to figure out options. Contact Mixon Tax Law immediately to discuss your situation and develop a strategic response plan. Call (713) 814-4737 to speak directly with Phillip about your audit notice. He personally handles the initial consultation for every new audit case, because early case assessment is crucial for developing effective defense strategies.

The firm handles IRS audit defense for clients throughout Texas and nationwide for federal tax matters. Whether dealing with correspondence audits, field audits, or appeals processes, don’t face the IRS alone. Professional representation can make the difference between a minor adjustment and a financial disaster.

Here’s the reality: audit deadlines are brutal, and the IRS doesn’t care about excuses. Contact the firm as soon as that notice arrives, because every day of delay means lost options that could make a real difference in outcomes.

IRS Audit & Appeal Defense Resources

Knowledge is power when dealing with the IRS. Mixon Tax Law maintains comprehensive resources to help taxpayers understand their rights and obligations during the audit process.

The firm’s tax law blog regularly covers audit defense topics, recent court decisions affecting taxpayer rights, and practical tips for maintaining compliance to reduce future audit risk. These resources complement the personalized legal advice provided to clients facing active audit situations.

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Phillip also speaks regularly at professional conferences on audit defense topics and maintains active involvement in tax law organizations to stay current on developing issues that affect clients.

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Proven IRS Audit & Appeal Defense You Can Trust

Looking back on years of audit defense work, the cases that stand out aren’t necessarily the ones with the most complex technical issues—they’re the ones where thorough preparation and strategic thinking made the difference between financial disaster and reasonable resolution.

Previous experience taught that details matter enormously in tax work. Revenue agents are trained to look for inconsistencies and unexplained items, so presenting coherent, well-documented cases is essential. Legal training adds the advocacy component—knowing when to push back against unreasonable IRS positions and how to protect client rights throughout the process.

After years of audit defense, Phillip has seen every trick the IRS uses and developed counters for most of them. When business or personal finances are at risk, clients need an attorney who’s actually won these battles before.

Talk to an expert today
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