by: Victoria J. Burns, CPA

Dealing With Tax Issues

When it comes to resolving IRS tax issues, it is essential to approach the problem with a cool head. Unfortunately, most people are afraid of the IRS, especially if they’ve gotten into trouble. Unfortunately that fear causes confusion, which can lead to a taxpayer being reticent to contact the IRS. And when the IRS doesn’t hear from someone who owes taxes they take the silence as grounds to pursue more aggressive steps such as liens and levies.

Additionally, while the majority of CPAs are comfortable with current tax filings, dealing with the heavy-handed tactics often employed by tax agencies is new territory to many tax professionals.

Taxpayers can choose to represent themselves when dealing with IRS, state and payroll tax issues. However, this can be a daunting experience for many reasons. Hiring a tax professional to manage this time-consuming task can save an individual or business more they’ll spend on professional services and alleviate a great deal of stress and anxiety.

Find the Right Tax Professional

Choosing the right person to work with to resolve tax issues is an essential step. While any CPA or EA can prepare tax forms, tackling tax issues requires special knowledge. Representing people with the IRS and state tax agencies takes experience navigating the common barriers and the persistence to follow through.

A word of caution in this area: most CPAs, EAs and even attorneys rarely represent clients and could be learning at the expense of the individual or business that retains them.

Look for testimonials. A CPA, EA or attorney that handles tax issues will build a reputation and a backlog of testimonials from happy clients. Review the testimonials to see what others have to say. And don’t be afraid to ask to speak to happy clients.  

Verify their credentials. There are only three types of professionals that may represent taxpayers with the IRS: CPAs, EAs and attorneys.

Interview them. Ask them about their education, general experience, and the strategies they employ. Choose a professional with the right mix of knowledge and experience.

Above all else, make sure to communicate clearly, truthfully and frequently with the tax professional to make optimal use of their time.