IRS & State Representation · Redding, CA
Got a letter from the IRS? Don’t ignore it.
- CA License #96754 — IRS Authorized Representative
- IRS, FTB, EDD & CDTFA
- Serving Shasta County since 2007
IRS Notice CP2000
Proposed changes to your tax return
Action required
Response deadline
60 days
Proposed balance due
$4,820
Owner reviewed notice
Confused
Licensed CPA involved
Not yet
After Susan
Notice responded.
Balance disputed.
Federal and state agencies. Every type of notice.
Federal
IRS — Internal Revenue Service
- CP notices — balance due, math errors, proposed changes (CP2000, CP503, CP504)
- Underreporter inquiries — income not matching information returns
- Audit correspondence — mail and office examination support
- Installment agreement requests and penalty abatement
- 940 / 941 federal payroll tax discrepancies
- Trust fund recovery penalty (TFRP) notices
California — Income & Payroll
FTB & EDD
- FTB — Franchise Tax Board income tax notices and proposed assessments
- FTB collection notices, liens, and levy correspondence
- EDD — Employment Development Department payroll audits
- DE 9 / DE 9C quarterly payroll discrepancies
- EDD worker classification audits (employee vs. contractor)
- Unemployment insurance and SDI assessment disputes
California — Sales & Use Tax
CDTFA
- CDTFA — California Department of Tax and Fee Administration sales tax audits
- Sales and use tax assessments and proposed deficiencies
- Back-period filing requirements and voluntary disclosure
- Nexus determinations for businesses selling across California
- Penalty and interest abatement requests
- Compliance reviews for taxable vs. exempt sales
What’s included
Representation that goes beyond forwarding the letter.
- Notice review and plain-language explanation — what the agency is actually claiming, why they’re claiming it, and what the realistic outcomes are. You understand the situation before any response goes out.
- IRS Power of Attorney (Form 2848) filed so Susan can correspond directly with the IRS on your behalf. You don’t have to be on the call.
- Written responses drafted and submitted with documentation supporting your position — receipts, prior returns, payroll records, or whatever the notice requires.
- Audit support for correspondence and office examinations — Susan reviews the same records the examiner is looking at, checks the accuracy of their findings, and defends against items that are overstated or unsupported.
- Payroll tax disputes — 940, 941, and California EDD quarterly discrepancies reviewed against your payroll records. Worker classification disputes with the EDD addressed directly.
- Sales tax defense — CDTFA assessment responses, taxability analysis for your specific product or service, and documentation review for audit periods.
- Penalty and interest abatement requests where there’s a reasonable cause argument — first-time abatement, reliance on professional advice, or procedural errors on the agency’s part.
Common notices Susan handles
- IRS CP2000 — underreporter proposed changes
- IRS CP503 / CP504 — balance due and final notice
- IRS Letter 566 — audit correspondence exam
- FTB notices — proposed assessment, collection, or lien
- EDD Notice of Assessment — payroll audit findings
- CDTFA Notice of Determination — sales tax assessment
- 940 / 941 discrepancy letters from IRS or state
First thing to do
Why a licensed CPA
The agency has trained examiners.You should have a licensed CPA.
Only CPAs, attorneys, and enrolled agents can represent you
A bookkeeper, an unlicensed preparer, or a family friend with tax software legally cannot represent you before the IRS or California taxing agencies. Susan holds a California CPA license and is authorized to practice before all relevant federal and state agencies on your behalf.
She checks whether the finding is actually correct
Not every proposed assessment is right. CP2000 notices are generated algorithmically and frequently misidentify income that was already reported under a different line. EDD audit findings often overstate a liability because an auditor applied the wrong classification to your workers. Susan reads the data, not just the dollar figure.
She knows the same rules the examiner is using
Payroll tax, sales tax, income tax, and penalty abatement all have their own procedural rules and appeal windows. Susan knows which arguments are worth making, which documentation actually matters, and which positions have a realistic chance of reducing the assessment.
You don’t have to talk to anyone at the IRS
With a Power of Attorney on file, the IRS corresponds directly with Susan — not with you. That matters when you’re nervous, when the questions are technical, or when the examiner is asking for information in a specific format that an untrained respondent would handle incorrectly.
How representation is priced
Scoped before you commit.
Simple notice response
CP notices, proposed changes, and balance-due letters with a clear factual basis. Flat fee, quoted after reviewing the notice.
Audit support
Correspondence and office exam support — reviewing records, disputing findings, and accompanying you. Priced by scope after a review call.
EDD & CDTFA matters
Payroll audits and sales tax assessments. Scoped separately based on the audit period and records involved.
What happens after you call Susan about a notice.
01
Free call — share the notice
Describe what you received — agency, notice type, dollar amount if any, and deadline. Susan tells you exactly what the notice means, how serious it is, and what a response would involve. You don’t pay anything for this call. Don’t respond to the agency before talking to her.
02
Susan reviews the notice and underlying records
She reads the actual notice — not just the summary — and reviews the relevant records: your return, the agency’s data, payroll reports, sales records, or whatever the notice is based on. She checks whether the proposed assessment is accurate, and identifies where there’s a legitimate basis to dispute it.
03
Response prepared and submitted
Susan drafts the written response, attaches the supporting documentation, and submits it directly to the agency via the proper channel — certified mail, fax, or the agency’s practitioner line. She keeps a record of every submission and follows up on anything that goes unanswered.
04
Resolution and documentation
Once the agency responds, Susan reviews their determination. If they accepted the position, you get a letter closing the matter. If they didn’t, she advises on next steps — appeal, payment plan, or penalty abatement — with a clear explanation of what each option means and what it costs.
Common questions about IRS and state representation.
I got an IRS notice but I think it’s wrong. What do I do?
Call Susan before you respond to the agency. Many IRS notices — especially CP2000 underreporter notices — contain errors. They’re generated automatically when the IRS’s records don’t match your return, but that mismatch often has an innocent explanation. Responding without a licensed CPA reviewing the notice first can waive your right to dispute and lock you into a higher liability than you actually owe.
What’s the difference between audit support and a full audit engagement?
Audit support means Susan reviews the same records as the examiner, checks the accuracy of proposed findings, and defends against items that are overstated or incorrect. This covers most IRS correspondence exams, office examinations, and state agency audits. A full audit engagement involves formal workpaper production, Tax Court representation, or criminal investigation defense — those are handled by specialized tax litigators. Susan will tell you clearly which category your situation falls into and refer you if it exceeds her scope.
The EDD is auditing my payroll. What does that usually mean?
EDD payroll audits most commonly involve one of two issues: worker classification (the EDD believes someone you’re treating as a 1099 contractor should be a W-2 employee) or wage discrepancies (your quarterly DE 9 or DE 9C filings don’t match your 940/941 federal payroll records). Both are addressable with the right documentation. Susan reviews your payroll records against the EDD’s data and responds with a position. Worker classification disputes in California are fact-specific and need to be argued carefully — the AB5 standard changed the landscape significantly.
The CDTFA says I owe sales tax on sales I don’t think are taxable. Can that be disputed?
Yes, and it’s worth checking before you pay. California sales tax is assessed on tangible personal property unless a specific exemption applies, and CDTFA auditors sometimes apply the taxability rules incorrectly — especially for businesses with a mix of taxable and exempt sales, or businesses selling services with a tangible component. Susan reviews the specific transactions being assessed, analyzes the taxability of each category under California Revenue and Taxation Code, and responds with supporting documentation and legal authority where applicable.
Can penalties be reduced or waived?
Often, yes. The IRS offers first-time abatement for taxpayers with a clean compliance history, and reasonable cause abatement for situations involving serious illness, natural disaster, reliance on professional advice, or other circumstances outside your control. California agencies have similar provisions. Susan evaluates whether an abatement argument applies in your situation and makes the request formally as part of the representation. Penalty abatement alone can sometimes exceed the cost of the representation engagement.
Do I need Susan to have prepared my return originally?
No. Susan can represent you on a return or filing she didn’t prepare. She’ll review the original return and the supporting records as part of the engagement. If she finds an error in the original filing that’s driving the notice, she’ll tell you — and if an amended return would resolve or reduce the issue, she can prepare that as well.
