Taxpayers with Issues Fare Better with Representation

When stacked against the deluge of applications for consideration of tax issues, applicants who sought representation prior to filing fared better than their counterparts who contacted the IRS on their own. The reason is that representatives who specialize in dealing with tax issues understand the terminology, policies, procedures and tactics used by the IRS; know how to answer questions so that reviewers have a clear understanding of the taxpayer’s case; and can present the taxpayer’s case in the best interest of the taxpayer.

Individual applicants who submit applications that are prepared correctly, using the proper terminology, with the correct supporting documentation stack the odds in their favor.

While some cases are simple to evaluate, the reality is that too many get stuck in the system because of missing documentation, unclear answers and missing details. Ultimately, many of these applications are denied. After denial, many of these applicants will find an attorney or CPA to represent them in an appeal.

Do You Need a Tax Professional?

If yours is a clear-cut case involving simple answers and requiring a minimal amount of paperwork, the answer is probably no. However, if your case is complex, involves more than a few forms, questionable circumstances, or requires that multiple parties provide documentation; you may want to find a qualified professional to help you.

Questions to Ask When Interviewing Tax Professionals

When seeking representation for tax issues, people typically think of retaining an attorney or CPA. Regardless of which type of professional you chose, they should have extensive experience with your specific scenario and an understanding of the laws that are pertinent to your case and state.

When interviewing the representative, don’t be afraid to ask questions. Remember, it’s in your best interest to choose wisely.

When interviewing candidates consider the following questions:

1. What experience do you have representing people with this specific tax issue? At minimum you want someone with several years of experience and a solid understanding of your issue and the relevant terminology.
2. How long have you been in business? Again, this answer may vary greatly, but you want someone who has been in business for at least two years. Ten or more is preferable.
3. Are you accredited by the Better Business Bureau? Don’t take this answer at face value. Verify it by going online or calling the Better Business Bureau to check their status.
4. What are your fees? Fees may vary. You should interview three to five professionals at minimum to find out the range for your area then select one that fits your budget.
5. Will you provide counsel to complete necessary paperwork? The company that helps you should take responsibility for your case. If they don’t complete the paperwork, they should, at the very least, provide counsel to you.
6. Will you track forms and appeals to ensure timeliness? They should advise you as to which forms to submit and monitor the status of your case.
7. What documentation will you provide for me? Bi-weekly updates regarding the status of your case will keep you abreast of the progress and ensure that important deadlines aren’t missed.
8. Will you represent me at hearings? Is there an extra fee for this service? Those with lower up front fees may charge extra for this service. Organizations that charge a larger up front fee will typically appear with you for no extra charge.
9. Is there a limit to the number of times I can call with questions? Unlimited access is preferred.
10. How often will you check with the IRS about my claim? Every two weeks is fair.
11. How long should I expect the process to take? The answer on this may vary, however currently files are taking anywhere from nine weeks to two years to be finalized.
12. Can I talk to any of your previous clients? Interviewing previous clients can give you an idea about what to expect.