IRS Audit Representation in LA
Entertainment Industry Audit Triggers
Entertainment industry professionals in LA face higher audit risk on specific line items. Large Schedule C deductions relative to income, home office claims, vehicle expenses, travel and meals, and agent/manager commissions all draw attention when the ratios look unusual. The IRS knows what typical deduction patterns look like for actors, producers, and freelance crew — and returns that fall outside those patterns get flagged.
The best audit defense starts before the audit: contemporaneous records, receipts organized by category, mileage logs, and a clear business purpose for every deduction claimed. We build returns with audit-readiness in mind, so if a notice arrives, the documentation already exists.
What Happens During an Audit
A correspondence audit is the most common type. The IRS sends a letter (usually a CP2000 or a specific request for documentation) and gives you 30 to 60 days to respond. We review the notice, gather the supporting documents, prepare the response, and submit it on your behalf. In most cases, you never have to talk to the IRS at all.
Field audits and office audits are less common but more involved. An IRS examiner reviews your records in detail, sometimes over multiple sessions. We attend these meetings with you (or instead of you, under a power of attorney), present the documentation, and negotiate on any disputed items. The goal is always to resolve the audit at the examination level before it escalates to appeals.
California FTB Audits & Notices
The Franchise Tax Board runs its own audit program independently of the IRS, and California is more aggressive than most states about examining returns. Residency audits are especially common for high earners who claim they’ve moved out of California — the FTB scrutinizes those claims closely, looking at where your driver’s license is registered, where your kids go to school, and how many days you actually spent in the state.
We handle FTB correspondence, protests, and hearings the same way we handle federal audits: professionally, with documentation, and with a clear strategy for the best possible outcome. If you’ve received a notice from the FTB, don’t ignore it — California’s penalty and interest rules are steep, and the clock starts ticking from the date on the notice.
Why LA Clients Choose Us for Audit Defense
Most people panic when they get an audit notice. That’s understandable, but it’s not productive. About 75% of the correspondence audits we handle get resolved with no additional tax owed — the client had the documentation, and we just needed to present it properly. The other 25% involve some adjustment, but even then, the amount is usually smaller than what the IRS originally proposed.
If you’re currently under audit or have received a notice, bring it to us as soon as possible. Response deadlines matter, and early engagement gives us the most room to work with. If you’re not under audit but want to make sure your returns are defensible, that’s even better — we’ll make sure the documentation is there before you need it.
Need Audit Help?
Contact us as soon as you receive a notice — early response gives us the most room to work.
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