Tax Problem FAQ: How Do I Resolve a Problem with the IRS?

Working with the IRS To Resolve the Taxpayer’s Problem

One of the most frequent and frustrating aspects of working with the IRS is being transferred from person to person while trying to resolve a tax related problem. Sometimes, this arises as a result of the practitioner either not understanding the central issue or failing to accurately assess which section of the IRS is responsible for addressing the issue. However, the fault can also rest with the IRS employee or both practitioner and IRS employee. So it is important to protect yourself during the audit process by knowing your rights as a taxpayer.

One outcome of the Congressional oversight hearings re: IRS practices, was a revised Mission Statement that significantly enhances the focus on improving customer service across all levels of the IRS. As a result, IRS employees have been encouraged to take ‘true ownership’ of resolving the taxpayer’s problem. To say a cultural transformation of this magnitude is massive is at best an understatement. It will likely take many years for the full impact of the initiatives to take effect and to be readily apparent to both practitioners and taxpayers.

To Resolve the Problem by Telephone, Request the Following

  • Name
  • Badge number
  • Position of the IRS employee
  • Address
  • Date and time of the conversation
  • Identify notices received by the taxpayer
  • Request that the IRS employee provide you with the background of the taxpayer’s situation
  • Provide an overview of the taxpayer’s problem and relevant evidence to advocate your client’s position.
  • Agree upon next steps and a timeline including deadlines for sending copies of the documentation.
  • Follow up the telephone conversation with a letter outlining the details of the call and what conclusions were reached including an executed Power of Attorney

To Resolve the Problem by Letter

  • Specify the required action to be taken by the IRS to resolve the problem including a detailed description of the issue.
  • Include the name, badge number, position of the IRS employee and address
  • Include a copy of an executed Power of Attorney
  • Include copies of notices received by the taxpayer
  • Provide copies of all taxpayer and practitioner responses to the IRS notices
  • Provide copies of all documents supporting the client’s position

More Tax Help, IRS News and Tax Relief Tips:

  1. Tax Problem FAQ: How Do I Know When I Need Professional Tax Help?
  2. Michael Rozbruch Interviewed in Opportunist Magazine
  3. Tax Problem FAQ: What is an IRS Installment Agreement?
  4. IRS Offer in Compromise Helps Taxpayer in Monroe, WA Save More Than $200,000
  5. More from My BigBiz Show Interview: Don’t Ignore the IRS Unless You Want Them to Levy Your Bank Account

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