The Taxpayer Bill of Rights allows taxpayers to retain an authorized representative of their choice to represent them in their dealings with the IRS. Whether a taxpayer is being audited, summonsed for an interview, or filing an administrative appeal, the right to be represented is absolute. Any attorney, CPA, enrolled agent, enrolled actuary, or other person permitted to represent a taxpayer before the IRS who’s not disbarred or suspended from practice before the IRS may submit a written power of attorney to represent a taxpayer before the IRS.
Why do I need a Tax Attorney to represent me before the IRS to Resolve Tax Issues?
Although a CPA or enrolled agent may represent you before the IRS, choosing a tax attorney to negotiate with the IRS has significant advantages. Tax attorneys generally have more technical expertise in analyzing and interpreting the Internal Revenue Code, maneuvering through the IRS’s administrative channels, and litigating cases in Tax Court, if necessary. Additionally, statements made to a tax attorney during the representation are protected by the attorney-client privilege. This privilege is imperative because if the IRS identifies any conduct, it believes is criminal and decides to bring a criminal tax case, the accountant will be subpoenaed to testify against you. The accountant-client privilege doesn’t apply in criminal proceedings.
The Role of a Tax Workout Group Tax Attorney in negotiating the resolution of tax claims.
TWG is uniquely qualified to negotiate the resolution of tax claims with the IRS. As a full-scale tax law firm, TWG has dedicated practice groups tailored to address all possible components of a tax matter with the IRS.
These practice groups include:
Let’s consider an IRS filing enforcement as an example of how each of our practice group tax attorneys can play a role in negotiating with the IRS and solving the taxpayer’s problem. If a taxpayer fails to voluntarily file his or her tax returns, the IRS will assign a Revenue Officer to enforce the taxpayer’s filing requirement to file. When this happens, our tax controversy attorneys quickly reach out to the Revenue Officer to request a conference to negotiate with the IRS to obtain an extension of time and then set forth a timetable to prepare the taxpayer’s delinquent returns. Our ability to complete the accounting- bookkeeping, and tax returns quickly and efficiently earns us instant credibility in the eyes of the IRS Revenue Officer. Our Tax Compliance Group CPAs and Tax Accountants work with the client to prepare accurate returns while maximizing all available deductions and credits.
If a tax return is audited, we will aggressively represent our clients administratively before the Examination Division to ensure the proper determination of the tax, advocate before the Independent Office of Appeals if we believe the auditor’s findings are erroneous, and, if necessary, we can litigate the dispute judicially in Tax Court.
Once the tax returns are processed as submitted, our tax attorneys will negotiate with the IRS to resolve any balances due. This could evolve into an installment agreement or Offer-In-Compromise. However, if our client cannot reasonably satisfy the balances due and is not a good candidate for an Offer-In-Compromise, we usually recommend a Tax Bankruptcy filing. Our Tax Bankruptcy Group focuses on representing clients in “tax-motivated” bankruptcy filings. A “tax-motivated” bankruptcy filing is one where a principal claim in the case includes a substantial tax debt, related interest, and penalties. We thoroughly analyze every tax claim to time the filing of the bankruptcy case to maximize the benefit of the discharge and eliminate the tax claims in the bankruptcy case.
In some cases, we are hired after the Revenue Officer has made a referral to the Criminal Investigation Division of the IRS alleging a willful failure to file tax returns. When this occurs, our Criminal Tax Defense Group is engaged, and one of our criminal tax defense attorneys immediately enters the equation to quash the referral or, if formal charges are made, defend against the prosecution of the case. Our criminal tax defense attorneys used to work in the Tax Division of the Department of Justice and were former Assistant United States Attorneys.
Watch the synergy and interplay of our Tax Practice groups and how our tax attorneys negotiate with the IRS to ensure the best possible result for every client. We offer the full spectrum of tax solutions for every twist and turn your case may take. Whether your case is best resolved administratively or judicially, TWG has you covered. Contact us today for a free consultation!
