Why Experience Matters Series - Part 1
During my 30+ years working as a Revenue Agent for the Internal Revenue Service, I noticed that some taxpayer representatives were better than others. The fundamental difference I noticed was that some representatives knew what I as an IRS Agent wanted, and others did not. An experienced representative made my audit easier and, consequently, made it less stressful for whomever I happened to be auditing. This difference was due to the experience that a representative had had previously with the IRS.
Normally, a person’s initial contact with the IRS, other than filing a return, comes from a letter sent by the IRS, especially during this time of COVID-19 and limited personal contact. When you receive a letter from the IRS, you want to seek advice from someone who can first tell you whether the letter came from Examination or Collection. Examination and Collection have different agendas within the IRS, and you want a representative who understands whether you are dealing with Examination or Collection.
Next, a taxpayer representative needs to understand what is being asked by the IRS and how to provide the answer. IRS Revenue Agents (examination) and Revenue Officers (collection) are like anyone else; they just want to get their job done and move on. Making it easy for them for makes it easy for you. However, when you fight the process, then the Revenue Agent or Revenue Officer will often dig in their heels and make the process more than unpleasant. How do they do so? They raise the bar of what is acceptable documentation and interpret each ambiguity in favor of the government. The examiner or collection person may get overruled in the end; however, that can be many dollars in representation fees later for a taxpayer. Therefore, a taxpayer with an IRS tax controversy needs a representative who understands how the exam or collection process works and how to respond to it in order to represent a client efficiently as well as effectively.
An experienced taxpayer representative will determine who sent an IRS Letter, what is being asked, and provide an adequate and timely response on what is at issue.
Part 1 - Why Experience Matters
Read Part 2 - Examination Letters
Read Part 3 - Examinations of Income
Read Part 4 - Examinations of Expense
Read Part 5 - Collection Letters