Q & A

Do taxpayers have rights?

What is the worst thing that someone can do when they're dealing with the IRS?

Ignore them, put your head in the sand, pretend it doesn’t exist. Hope they’ll go away. They’re not going away and they’ll eventually take your paycheck, put a lien on your house, take property from you if they can.

Is everyone entitled to representation?

Yes. Publication 1: Taxpayer Bill of Rights details your right to representation.

Where can I find the Taxpayer Bill of Rights?

You can find it on the IRS Website or by clicking here.

What is an Enrolled Agent?

How are you different than a traditional tax preparer?

I’m an enrolled agent. I have passed an exam. I have to take continuing education and I have a license that is monitored by the government.

I’m just not the John Doe on the corner who does tax returns. They are not required to have the license that I have. In some states, they are required to have a Tax Preparer’s license, but those people cannot practice before the Internal Revenue Service.

What is the difference between an enrolled agent and a tax attorney?

A tax attorney, for the most part, is allowed to practice in Tax Court. An enrolled agent is not.

Why aren't you a tax attorney?

I am allowed to represent a taxpayer up to the point of entering a courtroom. Once an issue ends up in front of a judge, I am not allowed to represent the taxpayer. However, most of my cases do not end up in front of a judge and when they do, the judge typically gives the taxpayer quite a bit of latitude because the taxpayer doesn’t know the court procedures.

How can you help me deal with the IRS?

Why do I need an enrolled agent?

The main level, the most baseline auditor, is an entry-level job at the IRS. As a result, people who are beginners or people who are new to something, may not know everything that’s in the Internal Revenue Code and how it’s applied to every business situation. Sometimes they may miss something or misinterpret something. That is almost always at the cost of the taxpayer.

What if the IRS has a lien against your property?

Once the lien is there, I can’t get the lien removed immediately. Depending on the circumstances, there’s a very high likelihood that within a 10-year period, I can get it removed. Not only can I get the lien removed but I can get the entire debt to go away with respect to the federal government. Different states have different rules. For example, in California, it takes 20 years for it to go away.

What if somebody has had a debt for 10 years and then all of a sudden it looks like it's going away then it resurfaces again?

The federal government does have the option to renew it for another 10 years. I’ve been doing this since 1976. I’ve never had a client had a renewed tax lien ever.

What if the IRS says you owe them money but you don't have the money to pay them?

It depends on your earnings and your allowable expenses. The IRS uses Collection Financial Standards to determine how much you are allowed to spend on different categories of expenses such as rent and utilities, food, automobile expenses, etc.

Why hire you?

What types of cases do you take?

I consider any case, but will not take a case that there isn’t anything I can do or the balance due is less than what my fee would be.

Why should I work with you as opposed to somebody else?

My cost is a whole lot less than a tax attorney’s and I will probably get the same or reasonably the same result.

If I can make enough of a case that the IRS has a high risk of losing, the IRS will typically give in.

How often do your clients resolve their cases before going to tax court?

I’d say probably 95% of all the clients that I’ve assisted to be pro per in Tax Court, it’s been resolved before court.

I’ve had a couple go to court. I’ve had a couple do okay but for the most part, it gets resolved before court because I try to show the district council, which is the attorney for the government, where the holes are in their case.

And if I can make enough of a case before we get to court, that there is a chance that they will lose, they give in.

What are some of your best success stories?

I had one where the auditor refused to accept the taxpayer was a real estate professional because he was also a part-time dentist. This resulted in a tax bill of around half a million dollars. At the end of the day, I was able to convince the IRS the taxpayer was in fact a real estate professional and reduce the tax bill to about $40,000.

I had a professional poker player that had his losses denied based upon the fact that poker is gambling and gambling losses can only be deducted up to gambling winnings. This is generally true; however, the taxpayer traveled across the country to play in tournaments incurring hotel, airfare, and food expenses meaning he was in the business of gambling. The IRS eventually agreed with me and allowed the expenses.