[1] The representative must be authorized to practice before the IRS or state, and specific credentials are required.
The types of representatives who are allowed to represent taxpayers before the IRS in income tax audits include attorneys, certified public accountants, and enrolled agents.
[2] An audit representative develops the strategy used to defend the taxpayer's position.
In an August, 1979 article in the Journal of Accountancy, Professors Ray Roberts, CPA and Philip Storrer, CPA proposed the idea of "prepaid tax return audit fees".
[3] Addressing the high costs of retaining professional help during an audit, the professors suggested to fellow accountants that they offer their clients the opportunity to prepay audit representation fees for a small amount.