Tax Audits; ARE THEY TAX DEDUCTIBLE?

[Josh July]

I have a quick question on tax deductions. 

Today I was at my Business Finance Course and we were talking about TAXES; my professor who shall remain nameless mentioned that "only ~1% of all taxes filed are ever audited" before he said that he was discussing tax deductions and how you can "tax deduct lawyer and attorney fees on business related expenses"(contract, legal and financial advice, etc.)

 I ask my Profecer "Are tax audits, tax deductible(lawyer and attorney legal fees, etc) ?" He never answered my question and only gave me a grin look before continuing on in the lecture; therefore, BP members I want to ask you if they are "tax-deductible". 

*Now I know that any final desition should go through proper legal counsel and I do not have this issue but I am really curious to what you would think :D

Not my image, link to source

[Jeffrey Bibby]

Professional fees that relate to producing or collecting taxable income or receiving tax advice are deductible. 

Remember that the CPA does not have to audit the client. If you give a profit and loss statement that looks in line with income and expenses and the tax return is completed per that statement, who is at fault? So, yes the CPA should charge for audit defense if the mistake is with the information and not with the preparation.