Audit Defense

An audit is not a verdict. But how you respond to one can determine whether it becomes one.

Receiving an audit notice from the IRS or a state tax authority is one of the most unsettling experiences a business owner, executive, or high earner can face. The instinct is often to panic — or worse, to respond without proper representation and inadvertently make the situation significantly worse.

At Blackridge Tax, we handle audits differently. We do not simply react to what the IRS or state tax authority puts in front of us. We take control of the process — managing every interaction, controlling the flow of information, and positioning your case for the best possible outcome from the very first response.

“When you retain Blackridge Tax for audit defense, you do not speak to the auditor. We do. Every document produced, every question answered, and every position taken is carefully managed to protect your interests.”

Types of Audits We Handle

The IRS and state tax authorities conduct several types of audits — each with different levels of complexity, risk, and required response. Regardless of the type of audit you are facing, the worst thing you can do is ignore it. Failure to respond guarantees the worst possible outcome.

Correspondence Audits

Computer-generated letters asserting errors. Many taxpayers do not realize these automated adjustments can often be successfully challenged with the right regulatory knowledge.

CP2000 Notices

Informing you of underreported income from third-party reports. We review these to identify credits or deductions that can offset the assessment.

Office & Field Audits — In-Person Examinations

A field audit is conducted by a local IRS Tax Examiner or Revenue Agent at your place of business, home, or an IRS office. These are the most comprehensive and intrusive type of audit — carrying the highest risk for taxpayers who are not properly represented.

Many taxpayers attempt to handle field audits themselves, only to discover they have inadvertently opened themselves up to further scrutiny and significantly larger assessments. At Blackridge Tax, we manage every aspect of the in-person examination process — controlling what information is provided and how auditor’s questions are answered.

State Tax Audits — California FTB, EDD & CDTFA

Critical Decision

Audit Statute of Limitations

The IRS generally has three years to assess additional tax. When that window is closing, they will often ask you to sign a waiver extending the statute. This is a critical decision that should never be made without representation. We evaluate every request to determine the strategy that best protects your interests.

Legal Deadline

Notice of Deficiency (The 90-Day Letter)

This formal legal document gives you 90 days to file a petition with the U.S. Tax Court. Missing this deadline can permanently forfeit your right to challenge the assessment. If you have received this — or missed one and an assessment has already been made — contact us immediately for Audit Reconsideration.

State Tax Audits — California FTB, EDD & CDTFA

In most cases, when a federal audit concludes with an increase in assessed tax, the IRS automatically shares that information with the state — triggering a corresponding state tax adjustment. California’s state tax authorities are among the most aggressive in the country.

When a business’s books and records are inadequate, state auditors can rely on indirect audit methods to estimate sales volumes and income — resulting in astronomical assessments that bear little resemblance to reality. We represent clients before all California state tax authorities, challenge indirect audit methods, and fight for the most favorable resolution available under state law.

Understanding Your Audit Defense

Unlike tax debt cases where the focus is on your ability to pay, audit cases center on documentation. The critical objective is to present your financial records clearly and in a manner consistent with sound accounting principles.

Many clients come to us mid-audit having discovered their documentation is incomplete. We specialize in reconstructing reasonable and defensible expenses to minimize assessments. Beyond documentation, we focus on persuading the examining officer to adopt an audit methodology more appropriate to your specific industry — a strategy that can dramatically change the outcome of your case.

Next Steps

Stop talking to the auditor.

Put a specialized legal barrier between you and the IRS. Protect your rights.