Enrolled Agent · Former IRS Revenue Agent
When the IRS Comes Knocking, You Need Someone Who Knows How They Think.
Stacy Kidd is a federally licensed Enrolled Agent and former IRS Revenue Agent with 16 years of examination experience at the highest field level. Now she works for you.
Schedule a Free ConsultationIRS Representation & Audit Defense
Facing an IRS examination, notice, or collection action? Get representation from someone who spent 16 years on the other side of the table.
Learn more →Forensic Accounting & Litigation Support
Complex financial investigation, income reconstruction, and litigation support for attorneys handling divorce, business disputes, and contested financial matters.
Learn more →Compliance Consulting
Identify and resolve tax exposure before the IRS does. Specialized analysis for pass-through entities, complex business structures, and high-income situations.
Learn more →Why Kidd Compliance Advisors
- Former IRS Revenue Agent, GS-14, the highest field examination level
- Enrolled Agent (EA), the only federally issued tax credential
- 16 years examining complex pass-through entities, corporations, and high-income cases
- Testified as summary witness in U.S. Tax Court
- Consulted directly with IRS Chief Counsel on docketed cases
- Based in the Baltimore, Maryland area, available nationally
About Stacy
Before launching Kidd Compliance Advisors LLC, I spent 16 years inside the IRS building the government's cases: auditing complex businesses, investigating fraud, and training agents nationally. I left federal service in 2025 to bring that same expertise to the people who need it most. When you work with me, you get someone who knows exactly how the IRS thinks, what they look for, and how cases get resolved.
Learn More About Stacy →IRS Representation
IRS Representation & Audit Defense
For individuals and businesses facing IRS examination, notices, appeals, or collection matters.
Receiving an IRS notice or audit letter is unsettling, even when you've done nothing wrong. The process is unfamiliar, the language is technical, and the stakes feel high. As a former IRS Revenue Agent with 16 years of examination experience, I know exactly how audits are conducted, what examiners look for, and how matters get resolved. I now put that knowledge to work for the people sitting across the table.
Whether you've received a routine notice or are facing a full examination, I can represent you before the IRS at every level, from the initial contact through appeals, and handle the communication so you don't have to.
Schedule a Free ConsultationServices
Audit Representation & Examination Defense
If your individual or business return has been selected for examination, I manage the entire process on your behalf: responding to the IRS, organizing documentation, developing your position, and negotiating the outcome. Particular depth in:
IRS Appeals Representation
If you disagree with the outcome of an examination, you have the right to appeal before any tax is assessed. The IRS Office of Appeals is an independent function and often the best opportunity to resolve a disputed matter without litigation. I prepare and present your case to Appeals, handle all correspondence, and advocate for a fair resolution.
Audit Reconsideration
If you missed your opportunity to respond to an audit, failed to appear, or have new information not considered during the original examination, audit reconsideration may allow you to reopen the matter. I prepare the submission and manage the process with the IRS.
Offer in Compromise
An Offer in Compromise allows eligible taxpayers to settle their tax debt for less than the full amount owed when paying in full would create financial hardship. The application process is detailed and the acceptance criteria are specific, so a well-prepared submission is essential. I evaluate your eligibility, calculate your offer amount based on IRS formulas, prepare the complete package, and represent you through the negotiation.
Response to IRS Notices
Most IRS notices are not audits. They are automated adjustments, requests for documentation, or proposed changes to your return. Many can be resolved with a timely, well-crafted written response. I review the notice, determine the appropriate response, prepare the documentation, and communicate with the IRS on your behalf.
Installment Agreements & Collection Matters
If you owe taxes you cannot pay in full, options exist to manage the liability over time. I negotiate installment agreements, currently-not-collectible status, and penalty abatement requests, and respond to liens and levies where applicable.
What to Expect Working With Me
- A free initial consultation to understand your situation and determine the best path forward
- Clear explanation of your options, with no jargon and no pressure
- Direct communication: you work with me, not a junior staff member
- Transparent fee structure, with flat fees for defined engagements where possible
- Prompt response to IRS deadlines; missed deadlines have serious consequences and I take them seriously
Frequently Asked Questions
Do I need an attorney or a CPA for an IRS audit?
Not necessarily. An Enrolled Agent is the only federally issued tax credential and carries unlimited authority to represent taxpayers before the IRS at every level: examination, appeals, and collections. For most audit matters, an experienced EA with examination background is the right choice. For matters involving potential criminal liability, an attorney should also be involved, and I will tell you directly if that applies to your situation.
What is an Enrolled Agent?
An Enrolled Agent is a tax professional licensed directly by the federal government, specifically by the IRS. The EA is the highest credential the IRS issues and authorizes unlimited practice before the IRS. Unlike CPAs and attorneys, whose licenses are issued by states, the EA is a federal credential that applies nationwide.
What should I do if I receive an IRS notice or audit letter?
Don't panic, and don't ignore it. The IRS opens examinations by mail, never with a surprise phone call, so a legitimate notice arrives in writing and states what is being questioned and the deadline to respond (often 30 days). Note that deadline, resist the urge to volunteer information beyond what's asked, and have the notice reviewed by a qualified representative before you reply. The earlier in the process you bring in representation, the more options you tend to have.
How are fees structured?
Fees depend on the complexity and scope of the matter. Defined engagements, such as notice responses, offers in compromise, and straightforward audit representation, are generally billed as flat fees so you know the cost upfront. Complex, open-ended examinations are billed hourly. We discuss fees at the initial consultation before any engagement begins.
For Attorneys & CPA Firms
Professional Services
Forensic accounting, litigation support, and compliance consulting for attorneys and CPA firms.
I spent 16 years inside the IRS examining complex businesses, investigating fraud, developing technical issues in pass-through entities, and working directly with Chief Counsel on docketed Tax Court cases. I left federal service in 2025 as a GS-14 Revenue Agent and hold the Enrolled Agent credential. I work with attorneys and CPA firms as a technical resource and referral partner, handling the engagements that fall outside the scope of a general practice and providing the kind of inside-IRS perspective that is genuinely difficult to replicate.
Engagements are available on an hourly, project, or retainer basis. I am comfortable operating within the litigation environment and understand the standards financial analysis must meet to be useful in that context.
Forensic Accounting & Financial Investigation
For attorneys handling divorce, business litigation, estate disputes, and contested financial matters
Litigation Support
For attorneys who need a technically grounded financial resource for contested matters
IRS Examination Support for Tax Attorneys
For tax attorneys who need technical examination support on complex client matters
Compliance Consulting
For CPA firms and businesses seeking proactive analysis of complex tax positions
Why Former IRS Agents Are Different
Most forensic accountants and tax consultants learn what the IRS looks for through continuing education and published guidance. I learned it by doing it: conducting thousands of hours of examination, developing complex technical issues, working fraud cases, and training agents nationally. That institutional knowledge (how examinations are actually constructed, which issues draw the most scrutiny, how agents evaluate documentation, and what resolves cases efficiently) is not available in any textbook. It is directly applicable to your clients' most sensitive and complex matters.
Credentials
- Enrolled Agent (EA): federally issued, with unlimited representation authority before the IRS at all levels
- Former IRS Revenue Agent, GS-14: Small Business/Self-Employed Division, 2009 to 2025
- U.S. Tax Court: summary witness testimony and direct collaboration with IRS Chief Counsel
- Specialized experience: pass-through entities (partnerships and S-corporations), BBA/TEFRA, captive insurance, civil fraud, high-income/high-wealth examination, indirect income methods, employment tax
- Master of Public Health: Johns Hopkins Bloomberg School of Public Health
Engagement Structure
I work on an hourly, project, or retainer basis depending on the nature and scope of the matter. Rates reflect the specialized nature of the work and the depth of experience brought to each engagement. I am happy to discuss the specifics of your matter and propose an appropriate structure.
Contact Me to Discuss a MatterAbout
About
Stacy Kidd, EA: Enrolled Agent & Former IRS Revenue Agent.
My Background
I spent 16 years inside the IRS as a Revenue Agent, working my way from GS-9 to GS-14, the highest level for field examination agents in the Small Business/Self-Employed Division. During that time I audited complex businesses, investigated fraud, developed technical issues in pass-through entities and high-income cases, testified as a summary witness in U.S. Tax Court, and collaborated directly with IRS Chief Counsel on docketed cases. I also trained and mentored Revenue Agents nationally, served as Lead Instructor for classroom training, and was selected for the IRS Chief Counsel Scholars Program on contemporary issues in pass-through taxation. I left federal service in September 2025 and was issued my Enrolled Agent credential, the only federally issued tax credential, in February 2026. I launched Kidd Compliance Advisors LLC to bring that experience to individuals, businesses, and legal professionals who need someone who genuinely understands how the IRS thinks and how matters get resolved.
Before the IRS
My career didn't start in tax. Before joining the IRS, I spent years in international public health, managing a $5 million NIH research program in Malawi as a financial controller and administrator for Johns Hopkins Bloomberg School of Public Health, and serving as a Peace Corps Volunteer in Senegal. I've worked in high-stakes, resource-constrained environments where the details matter and the margin for error is small. I hold a Master of Public Health from Johns Hopkins and a Bachelor of Arts from Towson University, along with accounting coursework completed in preparation for a career in accounting. That combination of financial rigor, cross-cultural experience, and 16 years inside one of the most technically demanding federal agencies is what I bring to every client engagement.
My Approach
I take on a focused number of engagements so I can give each one the attention it deserves. You work with me directly, not a junior associate. I communicate clearly, meet deadlines, and tell you what I honestly think, including when a situation calls for a different kind of help. My goal is straightforward: give every client the same quality of analysis and representation I applied to the government's cases, but now working for them.
Credentials
- Enrolled Agent (EA): Issued February 2026. IRS-issued federal credential with unlimited representation authority before the IRS at all levels (examinations, appeals, collections)
- Former IRS Revenue Agent, GS-14: Small Business/Self-Employed Division, 2009 to 2025. Complex pass-through entities, high-income/high-wealth cases, civil fraud, BBA/TEFRA
- U.S. Tax Court: Summary witness testimony and direct collaboration with IRS Chief Counsel on docketed cases
- Master of Public Health: Johns Hopkins Bloomberg School of Public Health, with concentrations in Epidemiology and Biostatistics
- Bachelor of Arts, Anthropology/Sociology: Towson University
- Accounting Coursework: Towson University
Professional Recognition
- Annual IRS performance awards: 2016 to 2024
- Selected for IRS Chief Counsel Scholars Program: Contemporary Issues in the Taxation of Passthroughs (2024)
- Lead Instructor for Revenue Agent classroom training (2024) and virtual pass-through entity instruction (2021)
- IRS Formal Mentoring Program mentor (2019 to 2022)
Resources
Resources
Practical guidance on IRS matters, tax compliance, and what to do when the unexpected happens.
Article
Five Things That Trigger an IRS Audit of a Small Business, and What to Do If It Happens
Most small business owners never face an IRS audit. But when one happens, the process can feel overwhelming, even when you've done everything right. Understanding what draws IRS attention and knowing what to do if you're selected can make a significant difference in how the matter resolves. This is not an exhaustive list, but here are five common audit triggers for small businesses, and what to do if you receive that letter.
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1. Significant Income Discrepancies
The IRS receives copies of every 1099, W-2, and third-party information return issued to you or your business. This means the IRS can quickly match the income you reported on your tax return to that reported by third parties. When your return reports income that doesn't match those documents, the IRS notices. If the income on your return is less than what third parties reported, the return will be scrutinized for a suggested understatement of income. This applies equally to unreported cash income in high-cash businesses such as restaurants, contractors, and retailers, where the IRS may use indirect income methods to estimate what was actually earned.
What to do: Maintain clean, consistent records and reconcile your reported income against all information returns before filing.
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2. Unusually High Deductions Relative to Income
Every industry has a statistical range for what deductions look like relative to income. When a return falls significantly outside that range, whether through very high business expense deductions, large charitable contributions, or substantial losses year after year, it can move the return into examination territory.
What to do: Claim every deduction you're entitled to, but document them properly. Deductions that can't be substantiated become adjustments in an audit.
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3. Home Office and Vehicle Deductions
Home office and vehicle deductions are entirely legitimate when properly calculated and documented. They are also among the most frequently misapplied deductions, which is why they receive disproportionate scrutiny. Mixed personal and business use is a consistent audit issue.
What to do: If you claim a home office, the space must be used regularly and exclusively for business. Vehicle use requires a contemporaneous mileage log, not a reconstruction at tax time.
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4. Schedule C Losses, Particularly Consecutive Years
A sole proprietorship or single-member LLC reports income and loss on Schedule C. Consistent losses, especially in businesses that have characteristics of personal hobbies, draw IRS attention under the hobby loss rules. The IRS generally expects a profit motive, and consecutive loss years can raise questions about whether a business is being operated as a legitimate enterprise.
What to do: Document your business activities, maintain a separate business account, and keep records that demonstrate genuine profit intent.
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5. Pass-Through Entity Issues
S-Corporations, partnerships, and LLCs taxed as partnerships are a significant area of IRS examination focus. Common issues include officer compensation in S-Corporations that is artificially low to avoid payroll taxes, basis and at-risk limitations on loss deductions, and passive activity rules. The IRS has dedicated significant resources to pass-through entity examination in recent years.
What to do: If your business is structured as a pass-through entity with complex ownership or significant losses, a compliance review before filing is worth considering.
If You Receive an Audit Notice
The first thing to know: receiving an audit notice does not mean you did something wrong. Returns are selected by automated systems, statistical models, and random selection, not only because the IRS believes something is amiss. The second thing to know: how you respond matters significantly. Missing deadlines, providing disorganized documentation, or saying things that create new issues are all avoidable mistakes that experienced representation helps prevent. If you receive an IRS examination notice, contact a qualified representative before responding. The earlier in the process you have experienced representation, the better positioned you are.
Stacy Kidd is an Enrolled Agent and former IRS Revenue Agent with 16 years of examination experience. She represents individuals and businesses before the IRS at all levels.
Schedule a Free Consultation →Contact
Contact
Let's talk about your situation. No obligation, no pressure.
Whether you've received an IRS notice, are facing an examination, or want to discuss a complex financial matter, I'm glad to have a conversation. I offer a free 20-minute initial consultation to understand your situation and let you know how I can help. I respond to all inquiries within one business day.
- Phone443-578-3400
- Email[email protected]
- Websitekiddcomplianceadvisors.com
- LocationBaltimore / Maryland area, available nationally for remote engagements.
The information provided on this website is for general informational purposes only and does not constitute legal or tax advice. Contacting Kidd Compliance Advisors LLC does not create a client relationship. No client relationship is established until a written engagement agreement has been signed by both parties.