Generally, taxpayers should seek the advice of an experienced tax professional when trying to resolve their tax debt problems. An offer in compromise may or may not be the best solution to the problem. If a taxpayer owes less than $10,000 in taxes, they can probably handle the problem themselves by calling the IRS and requesting a payment plan. If they owe between $10,000 and $25,000, they should consult with a tax professional about the options available to them. If they owe more than $25,000, taxpayers should definitely be working with an experienced tax professional.
What should a taxpayer be looking for in a tax professional to help them settle their tax debts?
Taxpayers should be looking for a tax professional with significant experience in IRS collection matters, especially experience in dealing with revenue officers, the Automatied Collection Systems division, and Appeals. They should find out how many years a tax professional has been working with collections matters. Additionally, taxpayers should be looking for a professional with extensive tax knowledge, especially concerning the laws for collection of tax debts. The professional should be admitted to practice before the IRS, such as an enrolled agent, certified public accountant, or tax attorney.
Oftentimes, a client will first seek the help of their attorney. Not all attorneys specialize in IRS collections. However, an attorney can help you evaluate potential tax professionals and make a recommendation about which tax professional seems best qualified to help.
David Bauman's Interview is spread over four pages:
