A taxpayer has a right to authorize another person to act on his or her behalf as a representative. Only an individual who is authorized to practice before the IRS can represent taxpayers. Attorneys are authorized to represent taxpayers before the IRS, EDD, SBOE and FTB. A tax attorney is skilled in tax procedure and in negotiating with the IRS on behalf of taxpayers.
What is practice before the IRS?
Only an individual who is authorized to practice before the IRS can represent a taxpayer. The IRS will not send notices or communicate with an individual who is not authorized to represent another taxpayer. Practice before the IRS includes the following:
- Communicating with the IRS on behalf of a taxpayer regarding the taxpayer’s rights, privileges, or liabilities under laws and regulations administered by the IRS.
- Representing a taxpayer at conferences, hearings, or meetings with the IRS.
- Preparing, filing or submitting documents, or advising on the preparation, filing or submission of documents, including tax returns, with the IRS on behalf of a taxpayer.
- Providing a client with written tax advice on one or more Federal matters.
Tax attorneys are authorized to represent taxpayers in audits, Tax Court, collection matters and all other matters.
Why have a tax attorney represent you?
The IRS is a large bureaucracy with overworked auditors and collections agents. They can make mistakes whether intentional or not that can cost you thousands or millions of dollars.
Communications to the IRS are communications to a federal agent and can be used against you in a court of law or in a determination of your tax liability including penalties. Any communications should be done carefully after analyzing the potential that they could have on your audit. Sometimes IRS auditors can misunderstand a statement and interpret it as an admission of fraud. On the other hand, IRS auditors are accustomed with working with attorneys. A tax attorney can guide you through the procedures and ensure that all of your rights are protected. IN addition, tax attorneys are skilled in negotiated with IRS agents to obtain the best possible results in your tax dispute.
We have extensive experience in guiding taxpayers through high stakes audits and collection matters to obtain the best possible resolution and protect you and your business. Contact a Los Angeles tax attorney today for a free consultation.