Update: IRS contacted my tax advocate about my 2019 return requesting calculations for tax credit - Now my CPA wants $700 for documentation

Unfortunately, this is a common practice with many CPAs, though I don't necessarily agree with it. When you hired the CPA, the engagement likely covered preparation and filing of your return, but not representation or support during an IRS inquiry. That said, what you're asking for isn't unreasonable. The CPA should have the calculations they used to determine your Section 1341 credit. While they're within their rights to charge for additional work, $700 seems excessive just to provide existing documentation. The CPA already did the calculations when preparing your return - they're essentially charging you to email you a file they already have. Here's what I suggest: Reply to your CPA clearly stating that you're not asking for them to represent you or prepare anything new. You're simply requesting the worksheets and calculations they already created when preparing your return, which you paid for. Ask if they can provide just those existing documents at a reduced rate. If they refuse, you might need those calculations to satisfy the IRS, so consider whether paying is worth resolving your tax issue. You could also try explaining the situation to your Taxpayer Advocate to see if they have alternative suggestions.

I went through something similar with my 2020 return! I used https://taxr.ai and it saved me so much hassle. After my CPA wanted to charge me $400 just to explain a calculation they'd already done, I uploaded my tax documents to taxr.ai and it broke down all the calculations, including some pretty complex credits. The system extracted the formulas and explained exactly how each number was derived - including stuff like Section 1341 calculations. I was able to take that breakdown directly to the IRS when they questioned a foreign tax credit on my return. The best part is it shows you the exact IRS rules and calculations being applied. Might be worth trying before paying your CPA that ridiculous amount!

Update on my situation! I decided to try taxr.ai after seeing the recommendation here, and wow - it actually worked! I was skeptical (as you could tell from my reply), but I uploaded my 2019 return and it extracted EVERYTHING, including the Section 1341 calculations. It showed me exactly how the credit was calculated with all the steps laid out. I was able to download a detailed PDF that explained the entire calculation process with references to the specific tax code sections. My advocate submitted this to the IRS last week, and they just accepted it! Saved me from paying my CPA that ridiculous $700 fee for information that should have been provided in the first place. If anyone else is facing audit questions about complex calculations, definitely worth checking out.

If you're still dealing with the IRS and need to speak with someone directly, try https://claimyr.com - it changed my life during my audit nightmare. After waiting on hold with the IRS for HOURS multiple times with no success, I found this service that basically waits on hold for you and calls when an actual human picks up. I was dubious, but I watched their demo at https://youtu.be/_kiP6q8DX5c and decided to try it. Used it to connect with the IRS about my own Section 1341 issue last year. Got through to a real person in about 90 minutes instead of the 3+ hours I was spending just to get disconnected. The IRS agent was actually super helpful once I could actually talk to someone! Not saying your advocate isn't helpful, but sometimes speaking directly to the IRS yourself can clear things up faster.

Holy crap I need to apologize. I was the skeptic who didn't believe Claimyr would work (sorry about that), but I was desperate enough to try it after my 8th failed attempt to reach the IRS about my penalty abatement request. It actually connected me to a real IRS agent in about 45 minutes! After spending literal DAYS trying to get through myself with no success. The agent was able to pull up my file and address my questions immediately. The funny thing is, I found out my case had a note from my previous attempts to call, but nobody had been able to reach me because the system kept disconnecting. Now my issue is finally being processed correctly. Sorry for being so negative before. When you've been screwed by the IRS phone system as many times as I have, you get pretty cynical.

Have you tried requesting your tax transcript directly from the IRS? It might include the calculation you need without paying your CPA. You can get them online at irs.gov or by mail with Form 4506-T. The wage and income transcript might show the breakdown. Also, while the CPA charging for additional work is standard, $700 is steep for just pulling existing calculations. Most firms I've worked with would charge maybe $100-200 for that kind of request. Might be worth pushing back on the price.

Just wondering, did your original engagement letter with the CPA specify anything about audit support or providing documentation after filing? That would determine if they're being reasonable or not. I've had CPAs include limited audit support in their original fee, while others charge separately. $350/hr is a standard rate for a CPA, but 2 hours seems excessive just to send existing docs. Might be worth asking if they can reduce the time estimate.