For most income tax audits, you can expect to incur between $3500 and $10,000 in legal cost for each year of the audit. We strive to be as efficient as possible in providing our audit representation services and this range is widely dependent on the issues present in the audit, the level of substantiation and organization of records, and the risk.
In many cases for clients who have smaller issues and are well organized, pricing can stick to the bottom of this range. Also, between audit years, we can also potentially streamline our preparation and presentation of similar circumstances.
Our pledge to our clients is to be prudent in our management of resources and to assist in mitigating costs, both time and monetary costs, as much as possible. Cost conservation is one of many strategic decisions that needs to be examined in the course of an audit.
If cost is a concern, which it is for many clients, please feel free to discuss it with us. We also encourage you to take advantage of our strategy sessions, which is a low-cost way to receive the benefit of our insight about your particular situation.