Paying a tax professional to represent you before the IRS or any other taxing agency, is not for everyone and honestly could be an unnecessary waste of money. But here are five situations where it IS necessary?
You are afraid or unsure of how to deal with the IRS or taxing agency on your own. There is a definite “fear factor” that takes place when you receive that letter from the IRS. You cannot discount this as a reason to pay a tax professional for representation. Fearful people often get themselves into deeper trouble by saying too much when they contact the IRS. When speaking to the IRS, anything you say will be used against you. The objectivity of a tax professional can often be essential for resolving a tax case. It is hard to place a value on the PEACE OF MIND that comes from having a qualified individual handle your IRS dealings.
You owe large amounts of money to the IRS or other taxing agency. The larger the amount owed, the higher the stakes become. The IRS and other taxing entities get more aggressive when these amounts are higher. You will often benefit from having a tax professional lower the temperature of the negotiations and handling the matter for you.
Your assets and income have been levied by the IRS or other taxing agency. Many levies can be removed through use of several tools currently available. Levy releases require a great deal of work in a very short period of time. A qualified tax professional will know how get the levies removed or reduced quickly.
You have not filed for many years or the IRS filed returns on your behalf. The IRS will prepare a Substitute Filed Return (SFR), but they will not prepare it in a manner that gives the taxpayer all of the deductions or credits they may be entitled to claim. There is a tendency for a non-filer to overestimate the task of resolving their tax situation. Many taxpayers think that they need to file returns with information they lost in their last move or thrown away. In most cases, the situation is NOT as a bad as the taxpayer thinks. A licensed tax professional can often research a taxpayer’s records and properly determine the minimum number of returns that need to be prepared.
Your case has been assigned to a Revenue Officer, the Large Dollar Unit of ACS or Regular ACS. If your case is assigned to one of these, which means your case is serious. You will be subject to aggressive collection actions. People working in these roles are everyday people and are capable of making errors or overstepping their powers. They understand how effective the “fear factor” is and do not hesitate using that to their advantage. By engaging a professional representative automatically lowers the aggressive nature of the proceedings and ensures that your rights as a taxpayer are defended.
INTAXACT CPA’s have worked with the IRS and other taxing entities for over 20 years and are knowledgeable in how to make your tax problems go away. Contact an INTAXACT CPA today to get help now!