Episode 33: In this episode, Timalyn takes a step back to explain what she means when she uses the term tax representation. She mentions it in podcasts, but it's term people may not fully understand. If you have tax problems with the IRS, there's a good chance tax representation is exactly what you're looking for, right now.
Before she begins, Timalyn takes a minute to thank her listeners for helping her to reach 1,000 subscribers on her YouTube channel! She sincerely appreciates your support and helping her to continue on her mission to fill the tax literacy gap, one taxpayer at a time.
You Have Rights as a Taxpayer
Timalyn begins with a story about a client who set up an installment agreement with the IRS to pay the tax debt. However, this person was struggling to make the payments. You have a right, as a taxpayer, to not have to incur a financial hardship while paying the tax debt. There are ways to navigate this process. It often involves having a tax professional that understands your rights to represent you. There are issues that can be negotiated to help you meet your obligations, while at the same time enabling you to do so in a reasonable fashion.
Defining Tax Representation
According to the Internal Revenue Manual (IRM), tax payers have the right to representation. It means you can let your tax representative communicate with the IRS, on your behalf. While the IRS can and will still mail you communications, in most situations they can't force you to attend meetings if you have an authorized representative.
The IRS cannot call you directly, if you've hired a tax representative. Again, this is a protection you have under the taxpayer bill of rights. Your representative will submit IRS Form 2848, informing the IRS that they have your permission to represent them.
The tax representative you hire must be credentialed. There are only 3 types of tax professionals who can officially represent you in front of the IRS. These three are: a tax attorney, a certified public accountant (CPA) or an enrolled agent (EA).
What Is an Enrolled Agent?
An enrolled agent specializes in taxes. An enrolled agent has an extensive 3-part test they must pass to qualify as an EA. This is a special designation by the IRS enabling the EA to represent clients in all 50 states as it relates to IRS tax matters.
Generally speaking, once you've hired a tax representative, you won't have to attend meetings requested by the IRS. This is something your representative will do for you. However, it's important to understand there are exceptions, such as if the IRS formally sends you a subpoena to appear, via a summons.
Timalyn explains that in most situations, if the taxpayer is in an interview or conversation with the IRS, they have the right to stop the proceeding by asking to consult with a tax representative. The taxpayer will need to show the IRS Form 2848 to prove he/she has a designated representative.
Once hired, Timalyn will execute the Form 2848, provide a copy to her client (the taxpayer) and file a copy with the IRS Centralized Authorization File, also known as the CAF unit. Once it's been filed and processed, the IRS will automatically see Timalyn is representing the taxpayer and therefore, the IRS must call her instead of the taxpayer. If the IRS mails letters to the taxpayer, they are required to copy Timalyn.
It's important to note that an EA is NOT an employee of the IRS. They are a tax professional authorized to represent taxpayers before the IRS. Timalyn works for you, not the IRS.
What if I Can't Afford to Hire a Tax Representative?
There are situations in which an individual may not be able to pay for the services of a tax attorney, a CPA or an EA. Don't panic. If you can't afford representation, you still have a right to representation. The IRS has a special program to address this situation. It's the Low Income Taxpayer Clinic (LITC). The nearest LITC can be located either via the above link, or by calling 1-800-829-3676.
There are guidelines to determine if you qualify to use the LITC. Timalyn reminds us that the definition the IRS uses and your definition of being broke aren't necessarily the same.
The LITC is independent from the IRS and also from the IRS Tax Advocate Service (TAS). The TAS is there to help with the IRS systems aren't working correctly and may be abusing your rights. The LITC works for you to make sure your tax debt payments don't place you in a financial hardship. Again, this is part of your rights under the law.
The LITC can represent you in tax audits, appeals and in tax collection disputes both before the IRS and in court.
If you still need help deciding which route is best for you and your specific situation, book a consultation with Timalyn. This link will take you to the Tax Relief Consultation page on www.BowensTaxSolutions.com. There is a fee for this consultation. Before you book this appointment, you'll want to have specific information available. This includes your actual questions, the amount the IRS alleges you owe, a rough idea of your income and your latest tax notice.
After the call, you'll have a roadmap for the next steps you should take. If Timalyn takes you on as a client during the 14 days after the meeting, the fee for the consultation will be credited toward her fee for tax representation. It's important that you take the first step in proactively addressing your back-tax situation. Whether this means hiring Timalyn, handling it yourself or seeking out the services of a different tax professional, take action now.
Please consider sharing this episode with your friends and family. There are many people dealing with tax issues, and you may not know about it. This information might be helpful to someone who really needs it. After all, back taxes shouldn't ruin their life either.
As we conclude Episode 33, we encourage you to connect with Timalyn on social media. You'll be able to subscribe to this podcast on Spotify, Apple Podcasts, Google Podcasts, and many other podcast platforms.
Remember, Timalyn Bowens is America's Favorite EA and she's here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today's episode.
For more information about tax relief options, visit https://www.Bowenstaxsolutions.com/ .
If you have any feedback, or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
