Tax Audit Preparation & Response Strategy Prompt
Prompt
Our [PASTE: client]] is expecting a tax audit by [PASTE: agency]] and needs a response strategy and preparation plan. Build an audit preparation and response plan. Include: (1) Audit scope & timeline – what periods? Which issues? Realistic timeline? (2) Risk assessment – which positions are defensible? Which are vulnerable? (3) Documentation gathering – what records support our positions? Organization? Privilege issues? (4) Audit defense strategy – how aggressively do we defend each position? Where do we negotiate? (5) Settlement authority – what settlement parameters should client authorize upfront? (6) Representation – will you represent them or do they need separate counsel? Include position defense memo template and audit timeline. Prepare for interviews.
Why it works
Preparation reduces audit duration and outcomes. Clear strategy prevents emotional responses.
Watch out for
Aggressive responses can antagonize examiners. Balance confidence with reasonableness.
Used by
Finance Teams