Taxpayers have the legal right to consult with a licensed professional when dealing with the IRS. In fact, the law says that when a taxpayer exercises their right to representation, the IRS employee should suspend the interview. An experienced representative can protect your rights by knowing the tax law and the administrative procedures the IRS is required to follow.
If the taxpayer clearly states to an officer or employee of the Internal Revenue Service at any time during any interview (other than an interview initiated by an administrative summons issued under subchapter A of chapter 78) that the taxpayer wishes to consult with an attorney, certified public accountant, enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service, such officer or employee shall suspend such interview regardless of whether the taxpayer may have answered one or more questions.
Granting Power of Attorney to an authorized allows the Enrolled Agent, Attorney, or CPA to “stand in the taxpayer’s shoes” and respond to notices, handle examinations and hearing without the taxpayer present, and exchange information with the IRS.
Any attorney, certified public accountant, enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service who is not disbarred or suspended from practice before the Internal Revenue Service and who has a written power of attorney executed by the taxpayer may be authorized by such taxpayer to represent the taxpayer in any interview described in subsection (a). An officer or employee of the Internal Revenue Service may not require a taxpayer to accompany the representative in the absence of an administrative summons issued to the taxpayer under subchapter A of chapter 78. Such an officer or employee, with the consent of the immediate supervisor of such officer or employee, may notify the taxpayer directly that such officer or employee believes such representative is responsible for unreasonable delay or hindrance of an Internal Revenue Service examination or investigation of the taxpayer.
Using a representative for tax matters restrains the IRS from contacting the taxpayer directly and helps control the process because it takes the emotion out of the issue and allows focus on the law and IRS Practice and Procedure.
WHEN SHOULD A TAXPAYER CONSULT WITH A REPRESENTATIVE?
Two levels of service are offered:
Power of Attorney and Designated Representative Service (IRS Form 2848) – This service allows us to review your tax information and make inquiries with the IRS regarding the status of your account; respond to any notices, inquiries, hearings etc on the taxpayer's behalf. This service has a $250 annual fee and includes one hour of free representation and a written Tax Account Analysis for the years covered by the Authorization. This service is mandatory for any Tax Resolution Matters
Tax Information Authorization (IRS Form 8821) – This service allows us to review your tax information and make inquiries with the IRS regarding the status of your account but does not allow for any representation of the taxpayer. This service has an annual fee of $100 annual fee and includes written Tax Account Analysis for the years covered by the Authorization. This service is mandatory for any taxpayer requesting an extension to file their tax return.
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