IRS Audit Defense Lawyer in South Carolina

If the IRS has selected your return for audit, you have the right to be represented by an attorney at every stage. South Carolina Tax Law Firm PA provides IRS audit defense for individuals and businesses across South Carolina, from the first audit letter through IRS Appeals and, if needed, the U.S. Tax Court. We review the notice, confirm your deadlines, take over communication with the examiner, and work to keep the audit limited to the issues the IRS actually raised.

Call (803) 753-7376 or request a consultation. Have the audit letter in front of you, including the letter number and the response date.

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What an IRS audit means for South Carolina taxpayers

An IRS audit, which the IRS calls an examination, is a review of a filed return to check that income, deductions, and credits were reported correctly. Being selected does not mean the IRS has decided you did something wrong. But what you say and send during the audit shapes the result, and the deadlines in the letters are real. The IRS conducts audits in three ways.

Correspondence audits

Most audits are handled by mail. The IRS asks you to send documents supporting specific items, such as a deduction, a credit, or unreported income. Correspondence audits look simple, but a rushed or incomplete response often leads to a proposed tax bill with penalties and interest.

Office audits

An office audit takes place at an IRS office, with an examiner reviewing records and asking questions in an interview. The IRS has offices in South Carolina, including Columbia, Florence, Greenville, Myrtle Beach, and North Charleston. An attorney can attend in your place.

Field audits

A field audit is conducted by a revenue agent at your home, business, or your representative’s office. Field audits are usually broader and are common for businesses, self-employed taxpayers, partnerships, S corporations, and higher-income returns. They often begin with an Information Document Request (Form 4564) listing the records the agent wants.

A CP2000 notice is not technically an audit. It is an automated proposal based on a mismatch between your return and information the IRS received, such as a Form 1099 or W-2. It still has a response deadline, and the same care applies.

How our IRS audit defense works, step by step

Review the notice and the deadline. We identify the type of audit, the tax years and issues involved, and every date that matters.
File a power of attorney. With IRS Form 2848 on file, the examiner contacts us instead of you, and we can request your IRS account transcripts.
Assess the exposure before anything is sent. We review the return, your records, and the assessment statute of limitations so we know what the IRS can and cannot reach.
Organize and present the records. We respond to Information Document Requests with documents that answer the question asked, and we reconstruct records where originals are missing.
Meet with the examiner. We attend interviews and meetings on your behalf and address the examiner’s legal and factual positions.
Review the proposed result. If the examiner proposes changes on Form 4549, we check the math, the law, and any penalties before you decide whether to agree.
Appeal if you disagree. We file a written protest with the IRS Independent Office of Appeals, or petition the U.S. Tax Court after a notice of deficiency.
Address South Carolina. A final federal change usually affects your South Carolina return too, so we handle the follow-up with the SC Department of Revenue.

IRS audit deadlines you should not miss

Audit letter response date. The first letter gives a date to respond or schedule an appointment. Missing it can lead the IRS to decide the audit using only the information it already has.
Information Document Request due date. Each Form 4564 has its own due date. Extensions are often possible if requested before that date.
30-day letter. If you do not agree with the examiner’s proposed changes, you generally have 30 days from the date of the letter to request a conference with IRS Appeals.
Notice of deficiency (90-day letter). You have 90 days from the date of the notice to file a petition with the U.S. Tax Court, or 150 days if the notice is addressed to you outside the United States. The Tax Court cannot extend this deadline.
Assessment statute of limitations. The IRS generally has three years from the date a return was filed to assess more tax, six years if income was understated by more than 25 percent, and no limit for a fraudulent return or a return that was never filed. Get advice before signing Form 872 or any other agreement to extend this period.
South Carolina follow-up. South Carolina generally requires you to report a final federal change on an amended South Carolina return within 180 days.

These are general rules, and exceptions apply. Check the dates on your own notice, and see IRS Publication 556 for the IRS’s own explanation of examinations and appeal rights.

Your rights during an IRS audit

The Taxpayer Bill of Rights applies in every audit. The rights that matter most in practice are:

The right to representation. An attorney can deal with the IRS for you. Unless the IRS issues a summons, you generally do not have to attend the interview yourself.
The right to challenge the IRS’s position and be heard. You can provide documents and explanations, and the examiner must consider them.
The right to appeal in an independent forum. IRS Appeals is separate from the examination function, and the U.S. Tax Court is a court independent of the IRS.
The right to finality. The IRS has limited time to audit a year and assess tax.
Notice of third-party contacts. The IRS must generally tell you in advance before contacting others, such as banks or customers, about your tax matter.

IRS audits we handle

Individual income tax audits, including itemized deductions, credits, and unreported income
Small business and self-employed audits, including Schedule C income and expenses
S corporation and partnership audits, including the centralized partnership audit regime
Rental real estate, passive activity, and hobby loss issues
Digital asset and cryptocurrency reporting
Employment tax audits and worker classification
Audits involving foreign accounts, foreign income, or international information returns
Estate and gift tax examinations
Tax-exempt organization examinations

How an IRS audit affects your South Carolina taxes

South Carolina income tax starts from federal taxable income, so an IRS audit adjustment usually changes your South Carolina tax as well. The IRS and the South Carolina Department of Revenue share audit information, and SCDOR can assess additional state tax based on a federal change. When we handle an IRS audit, we plan for the South Carolina side from the start: we look at whether an amended South Carolina return will be required, what it will show, and how to file it on time. If SCDOR opens its own audit, the firm handles that too.

Attorney experience

The firm is led by attorney Daniel P. Knudsen, who has represented taxpayers in tax controversies for more than 10 years, including litigation before the U.S. Tax Court. Before entering private practice, Daniel represented taxpayers before the IRS at a Low Income Taxpayer Clinic funded through the IRS Taxpayer Advocate Service grant program, and worked in the Executive Division of a state department of revenue. That experience means a working knowledge of how examinations, appeals, and collection cases move through these agencies and which deadlines matter at each stage.

Daniel holds an LL.M. in Taxation and certificates in International Taxation and State and Local Taxation from Georgetown University Law Center, and completed the Tax Litigation Training Program, a professional certificate program, at Villanova University Charles Widger School of Law. Every audit is handled by an attorney from the first notice through final resolution.

IRS audit help throughout South Carolina

Our office is in Spartanburg, and we represent IRS audit clients throughout South Carolina, including Greenville, Columbia, Charleston, North Charleston, Mount Pleasant, and Rock Hill. Most audit work happens by mail, phone, and secure video, so you do not need to live near Spartanburg. When an audit goes to court, the U.S. Tax Court holds trial sessions in Columbia.

IRS audit questions

How long does an IRS audit take?

It depends on the type of audit and how quickly records are produced. Correspondence audits often finish within several months. Office and field audits commonly take a year or longer, and an appeal adds more time.

Should I talk to the IRS auditor myself?

You can, but you don’t have to. Statements made in an interview become part of the file, and answers given without preparation can widen the audit. With a power of attorney on file, your attorney can handle the interview and the follow-up questions.

Can the IRS audit more than three years back?

The IRS usually audits returns filed within the last three years. It can go back six years if income was substantially understated, and there is no time limit for a fraudulent return or a year with no return filed. The IRS may also ask you to sign an agreement extending the deadline.

What if I can’t find my records?

Missing records don’t end your case. Bank statements, third-party records, and other evidence can often be used to reconstruct income and expenses. Some deductions, such as travel and vehicle expenses, have stricter proof requirements, so they need extra attention.

What happens if I disagree with the audit result?

You can request a conference with the IRS Independent Office of Appeals after receiving a 30-day letter. If the IRS issues a notice of deficiency, you can petition the U.S. Tax Court within 90 days without paying the tax first. Cases involving $50,000 or less per year may qualify for the Tax Court’s simpler small tax case procedure.

Will an IRS audit lead to a South Carolina audit?

Not necessarily, but the South Carolina Department of Revenue receives information about federal audit changes and can assess South Carolina tax based on them. Reporting the change on time, on an amended South Carolina return, avoids additional state penalties and interest.

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Talk to a South Carolina IRS audit lawyer

If you received an IRS audit letter, call (803) 753-7376 or request a consultation. Tell us the letter number, the tax years involved, and the response date. Please don’t include confidential details in the contact form. Submitting it does not create an attorney-client relationship.

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South Carolina Tax Law Firm PA is a private law firm and is not affiliated with the IRS, the South Carolina Department of Revenue, or any government agency. Attorney responsible for this content: Daniel P. Knudsen, 405 S. Pine St., Suite F, Spartanburg, SC 29302. This page provides general information, not legal advice. Every case depends on its own facts, and no particular outcome can be promised.

Reviewed by Daniel P. Knudsen, attorney, October 2026.