Troubles with the IRS?
By Dr. John L. Stancil
Tax Analyst, WebTaxCenter.com
At least once in our lifetimes, most of us have probably gotten a letter from the IRS. And in most cases, it was probably not good news. Our tax return was being "examined." After we got over the initial shock, we talked with our CPA, who dealt with the matter for us and the examination was concluded. Maybe we came out clean, maybe we had to pay some more tax, but it was over. This is how most IRS examinations, or audits, are concluded.
Unfortunately, there are a few cases that do not get resolved that easily. Let's face it - the IRS is a bureaucracy and sometimes dealing with a bureaucracy can be frustrating, slow, exasperating, wearisome, and drawn out. The IRS doesn't return your phone calls or respond to your letters. Your case seems stuck not going anywhere. You can't get a straight answer or a resolution of the issue. Whether with the IRS or other organizations, we have all been there.
If you have troublesome tax issues and are 1) experiencing delays in the resolution of your case or 2) facing economic harm, you may request the services of the Taxpayer Advocate Service (TAS). The TAS was established a number of years ago as an independent agency within the IRS. The Taxpayer Advocate Service helps taxpayers in four ways:
- Helps taxpayers whose problems are not resolved through normal IRS channels to promptly settle their cases.
- Assists taxpayers who are facing hardships.
- Identifies issues that impact taxpayer rights, increase taxpayer burden or otherwise create problems for taxpayers. The TAS brings these issues to the attention of the IRS management with the objective of overcoming these problems.
- Recommends changes in the tax law or procedures by making an annual report to Congress.
These last two objectives are directed at easing the burden of taxation on all taxpayers in general. With the first two objectives, the TAS deals with problems faced by individual taxpayers and their problems.
Can the Taxpayer Advocate Service Help Me?
You may use the TAS if one of two situations apply to you. First, If IRS actions prevent you from providing necessities such as housing, transportation, or food; or if you own a business and are unable to meet basic expenses such as payroll you may request the services of the Taxpayer Advocate Service.
Second, if you face a delay of more than 30 days to resolve a tax-related problem you may request assistance from the TAS. Additionally, if you are not receiving a response by the promised date, you may also contact the TAS.
What Happens When I Contact Them?
When you contact the TAS, you will be assigned a case advocate who will listen to your case, work with you, and see your case through to an appropriate conclusion. This does not mean that your case advocate will take your view, but will try to understand your view and represent it to the IRS. Likewise, it does not assure a favorable resolution of your case, but it does promise a fair hearing. You can expect that your case advocate will review your case in an impartial manner, give you a time frame for action on your case, and update you on progress being made. In addition, the advocate will give you advice on how to avoid future tax problems with the IRS.
This Sounds Great, How Do I Get in Touch?
The Taxpayer Advocate Service may be contacted through a number of methods. You can submit the appropriately named Form 911 to the TAS office in your state. This form is available by calling 800 829-3676 or may be downloaded at
www.irs.gov. In addition, you can call your local TAS office or their national toll free number 877 777-4778. Addresses and phone numbers of local offices are listed at
www.irs.gov/advocate.
More detailed information about the Taxpayer Advocate Service is available in IRS Publication 1546. Your CPA or other tax professional can also advise you in this area. Finally,
www.webtaxcenter.com has a number of useful tax resources that you may find beneficial.
________________________________________
Dr. John L. Stancil, a tax analyst for WebTaxCenter.com, has been a member of the Florida Southern College faculty since 1998. He received his bachelors degree from Mars Hill College and holds a M.B.A. from the University of Georgia. He later earned his doctorate in accounting from the University of Memphis. He holds four professional certifications, including CPA, CMA, CFM and CIA. Stancil has received the Florida Institute of CPAs 2005 Outstanding CPA in Public Service Award. (This award is given annually to a Florida CPA who has demonstrated significant contributions through community and civic activities.) He has also been recognized as the Expert of the Month on several occasions by allexperts.com.