When Should You Consider IRS Representation?

You don't necessarily need a tax professional every time the IRS sends you a letter. But sometimes having someone in your corner can make a real difference.

IRS representation means having an authorized tax professional communicate with the IRS on your behalf in matters they are permitted to handle.

The bigger question is:

When does it make sense to have someone represent you instead of handling the IRS yourself?

You Have More Than One IRS Issue

One notice may be straightforward.

But if you're dealing with multiple tax years, unfiled returns, unpaid balances, penalties, or several IRS notices at the same time, the situation can become harder to manage.

You may need to understand how the different pieces fit together before deciding what to do next.

That's a situation where professional guidance may be worth considering.

The IRS Is Taking Collection Action

If you've received notices about a potential levy, your wages or bank account are affected, or the IRS is taking other collection action, don't ignore it.

The IRS has specific procedures for collection actions, and depending on the circumstances, taxpayers may have rights to appeal or request a hearing.

Having an authorized representative can allow a qualified professional to communicate with the IRS and help you understand what is happening.

You Don't Agree With the IRS

Maybe the IRS says you owe more than you believe you owe.

Maybe you believe a payment wasn't properly credited.

Maybe the IRS has information you believe is incorrect.

If you disagree with the IRS and aren't sure how to respond, professional help may be appropriate.

Taxpayers have the right to retain authorized representation in many IRS matters. Attorneys, CPAs, and enrolled agents can have unlimited representation rights before the IRS when properly authorized. (irs.gov)

You're Not Sure What the IRS Is Asking You to Do

Sometimes the biggest problem isn't the amount you owe.

It's not knowing what you're supposed to do next.

If you've read the same IRS notice three times and still aren't sure what it means, that's a good reason to get another set of eyes on the situation.

You don't need to wait until you've missed a deadline or received another notice.

Understanding the situation early can help you make a more informed decision.

Your Personal and Business Taxes Are Connected

For business owners, an IRS problem may not stay neatly separated from the business.

Depending on the circumstances, personal and business tax obligations can overlap or affect financial decisions.

If you're dealing with tax issues in both areas, it may be helpful to have someone look at the bigger picture rather than treating each issue separately.

Representation Doesn't Mean You Give Up Control

Some people hesitate to get help because they think hiring a professional means handing over their finances or decisions.

It doesn't.

You remain the taxpayer.

The purpose of representation is to have an authorized professional communicate with the IRS on your behalf, help you understand your situation, and evaluate what options may be available based on your circumstances.

You should still understand what's happening and why.

So, When Should You Consider Representation?

Consider getting professional guidance if:

• You have multiple years of tax problems.

• You have significant unpaid tax debt.

• The IRS is threatening or taking collection action.

• Your wages or bank account are being affected.

• You disagree with the amount the IRS says you owe.

• You have unfiled returns and other IRS issues.

• You're dealing with both personal and business tax problems.

• You simply don't understand what the IRS is asking you to do.

You don't have to wait until the situation becomes overwhelming.

Not Sure If IRS Representation Is Right for You?

You don't have to decide that by yourself.

If you're dealing with an IRS problem and aren't sure whether professional representation makes sense, book a complimentary consultation.

We can talk through what's happening, identify the questions that need to be answered, and determine what your next step may be.

BOOK YOUR COMPLIMENTARY CONSULTATION

You don't have to know exactly what kind of help you need before you reach out.

Sometimes getting clear on your situation is the first step.