When appearing before the IRS, for audits, collection actions and appeals, it is extremely critical to have effective representation to state and defend your interests.
Generally, only three classes of professionals are qualified to represent taxpayers before the IRS – Attorneys, Certified Public Accountants and Enrolled Agents. (Enrolled Agents are tax professionals who have successfully completed a set of examinations given by the IRS). Other professionals may represent taxpayers before the IRS but only relating to tax returns they prepared.
Additionally, Attorneys are qualified to represent taxpayers in Tax Court should the taxpayer lose an appeal but wish to petition the case in Tax Court.
One fact to bear in mind is that IRS officials who represent the IRS during these engagements are all very well trained and aware of the rules governing the several phases of tax administration. To have a fuller appreciation of tax administration, it may be worthwhile to review the bodies of rules and regulations relevant to tax administration in the US.
First, there is the actual Internal Revenue Code (the “Code”). This is the law itself, as promulgated by the US Congress and signed into laws by the President. This is the bible of tax laws itself, the very genesis of all other rules and regulations governing tax administration. Anyone who has ever read or reviewed the Code can attest that it is cryptic and difficult to understand. Generally, only Tax Lawyers and other very highly seasoned professionals can easily navigate the Code. Second, there are the Internal Revenue Regulations. These are a set of writings produced by the IRS, interpreting the Code. It is important to note that the Regulations are IRS’ own interpretation of the Code and are not necessarily the law. They are sometimes successfully challenged in Court. Tax Attorneys routinely challenge these interpretations in Court and are sometimes successful.
There are also the Internal Revenue Manuals. These are guideline manuals prepared for IRS employees by the IRS. These generally provide instructions for the IRS employees in dealing with taxpayers in various stages of examination, audits, appeals and the collection process. These Manuals are publicly available but are generally used and well understood only by Tax Attorneys. Equipped with knowledge of the specific instructions that bound IRS employees, Tax Attorneys are better able to more competently represent their clients.
