Hiring an IRS Representative
When you retain someone to represent you before the IRS, you are giving that person the power to act as your Attorney, whether or not that person holds a license to practice law. And, the implications of that can be enormous. First, that person will have the authority to speak to the IRS on your behalf - whatever that person says to the IRS, it's just as if you are saying it. Secondly, that person will have the authority to act on your behalf, including the authority to enter into agreements with the IRS. Finally, if that person doesn't do anything, it's as if you are doing nothing, and the IRS doesn't care if you did pay that person a lot of money to represent you and resolve your problems - you will be held responsible.
The major issue at this time, as I see it, is that the IRS doesn't seem to view itself as having much regulatory authority over those it authorizes to represent taxpayers before it - its job is to collect money. So, if there is to be any accountability for a dishonest representative or company, it is likely going to have to come from somewhere else, sometimes the states attorneys general, sometimes a class-action lawsuit. However, those can be extremely time-consuming processes, and the ultimate results may not be very favorable to the taxpayer who, justifiably, feels cheated. In fact, it may not even result in preventing the dishonest representative or company from continuing to do business anywhere it wishes.
On the other hand, if the representative holds a professional license in one or more states, that person has accountability to the licensing authority in those states. For example, Attorneys are liable to the State Bar, and, CPA's are liable to the Board of Accountancy or similar authority in the states in which they are licensed. And, although it may be a sad fact, I tend to believe that, where there is accountability, it is much less likely to be necessary.
Therefore, the best advice I can give to someone considering retaining some assistance in resolving their IRS problem is to hire a professional. Secondly, meet face-to-face with anyone you are considering hiring. Ask any question you need to, in order to make yourself feel comfortable giving that person the authority to step into your shoes and act on your behalf. Although you aren't required to have an Attorney represent you before the IRS, you do need to make sure that you are comfortable having the person you do hire step into your shoes and act as your attorney, since hiring a dishonest and/or incompetent representative can only compound the financial and emotional turmoil which already exists when you have an IRS problem.
Topics
Hardship/Currently-Not-Collectible Status
Hiring an IRS Representative
Innocent Spouse Relief
Installment Agreements
Liens and Levies
Offers In Compromise
Payroll Taxes and the Trust Fund Penalty (TFP)
Payroll Withholding Taxes
Substitute for Return (SFR)
Recent Updates
December 21, 2007
Payroll Taxes and the Trust Fund Penalty (TFP)
December 20, 2007
Substitute for Return (SFR)
