DEALING WITH THE IRS



As the old saying goes, "Someone's got to do it!"-and in most cases you are well advised to have a CPA represent you in dealing with the Internal Revenue Service over matters of potential conflict. To facilitate this representation, you will need to sign a Power of Attorney giving the IRS permission to discuss your tax situation with a CPA.

Here are four of the more common situations that often warrant CPA involvement:

1. The IRS sends a notice regarding a difference between their information and that of the client (as shown on the Tax Return). This is the simplest case to resolve. Usually, a phone call or letter does the trick.

2. The client may be unable to pay his or her entire tax liability at the time of tax filing. We provide the necessary paperwork and/or assist with a payment plan arrangement. If the liability is over $10,000, or involves payroll taxes, the circumstances require more effort. In desperate situations an "offer in compromise" may be submitted.

3. The client's tax return is audited. Here, we can represent the client before an IRS auditor whether or not we prepared the return. (Obviously, we are in a much better position if we were the preparing firm. We keep copies of all pertinent documentation for every return prepared, and return the originals to the client for safekeeping as well.)

4. The client has a dispute with the IRS regarding the amount of tax owed in a specific situation. This is often the most difficult situation, especially if payroll taxes are involved.

PLEASE NOTE THAT IT IS EXTREMELY IMPORTANT TO FAX OR DELIVER ANY IRS NOTICE YOU RECEIVE TO OUR OFFICE IMMEDIATELY. Do not delay! Even if the problem resolution is simple, it is rarely abbreviated by the presence of governmental bureaucracy.

Finally, please be aware that our services, as described above, also apply to the Commonwealth of Virginia, other States and local jurisdictions as well as the Federal Government.