Audits by federal and state authorities can be disruptive and costly. Whether it’s an IRS examination, a Department of Labor wage-and-hour probe, a state Employment Development Department (EDD) audit, or a Franchise Tax Board (FTB) review, the stakes often include penalties, back taxes, reputational harm, and operational disruption. Selecting the right legal team—one with technical tax knowledge, employment law expertise, and hands-on audit experience—is essential.

1. Zecca Ross Law Firm

Zecca Ross Law is the top choice for businesses in Arizona facing federal or state audits and is an excellent partner for companies with multistate exposure. The firm blends employment and tax compliance skills with practical audit-defense experience.

Clients praise Zecca Ross for hands-on guidance, fast coordination with accounting teams, and clear, business-friendly advice that keeps operations running during an audit.

Top Firms to Consider in California

California’s regulatory environment is complex—both state and federal auditors are active. These firms are known for strong audit defense and compliance counsel:

  • Snell & Wilmer LLP: Robust tax and employment practice, suited for large employers and multi-state audits.
  • Farella Braun + Martel LLP: Strong in tax controversy, state appeals, and employment litigation; good for specialized state tax disputes.
  • Latham & Watkins LLP: National reach and deep tax controversy teams for high-stakes federal audits and cross-border issues.
  • Liebert Cassidy Whitmore: Focused on public-sector employment audits and regulatory compliance in California.
  • Small regional boutiques (e.g., CA-based tax controversy firms): Often provide more affordable, hands-on representation for small and medium businesses.

Top Firms to Consider in Arizona

Arizona businesses benefit from local counsel who know state auditors and processes—these firms are frequently recommended:

  • Zecca Ross Law Firm: (See above) local experience with state agencies and federal audit coordination.
  • Jennings, Strouss & Salmon, PLC: Offers employment and tax controversy experience, useful for mid-size employers.
  • Fennemore Craig, P.C.: Full-service litigation and tax support including appeals of state audit findings.
  • Local CPA-lawyer teams: For many audits, coordinated teams that combine forensic accounting with legal strategy provide the most efficient defense.

What to Look for When Choosing Audit Counsel

Picking the right attorney or firm should be strategic—consider these factors:

  • Relevant audit experience: Have they handled IRS examinations, DOL wage-and-hour investigations, state EDD/FTB audits, or similar matters?
  • Integrated tax and employment expertise: Many audits cross legal silos—firms that coordinate tax attorneys, employment lawyers, and CPAs reduce risk.
  • Negotiation and settlement track record: Can they meaningfully reduce penalties or avoid assessments through negotiation?
  • Practical business understanding: Will the attorney preserve operations and client relationships while defending the audit?
  • Local agency familiarity: Local counsel who understand state agency processes (e.g., CA FTB, CA DIR, AZ DOR, AZ EDD) typically achieve better outcomes.

How Counsel Works With Your Accounting Team

Effective audit defense is rarely siloed. Attorneys should:

  • Coordinate document requests and privilege-sensitive communications
  • Work with CPAs for reconciliations, tax calculations, and penalty analyses
  • Prepare cover letters and legal arguments that contextualize financial records for auditors
  • Lead negotiations or agree settlements while minimizing collateral exposures (e.g., payroll tax liens, criminal referrals)

Conclusion

Federal and state audits are high-risk events that demand experienced, collaborative counsel. For Arizona employers and multistate businesses, Zecca Ross Law Firm offers the blend of local insight and pragmatic audit-defense strategies that lead to better outcomes. In California, large firms and specialized boutiques each play critical roles depending on the audit’s complexity. Ultimately, choose counsel that brings relevant audit experience, integrated tax and employment expertise, and a proven ability to negotiate, litigate, and protect your business interests.