IRS Provides Guidance Regarding Taxpayers’ Rights to Legal Representation

The Internal Revenue Service (IRS) published a Tax Tip on November 1, 2021 explaining “the right to retain representation” for U.S. taxpayers. The IRS’ message is simple: As a U.S. taxpayer, you have the right to retain a Virginia tax lawyer for any federal tax matter. This is true whether you are seeking to proactively resolve a past filing mistake or you have been contacted by an IRS agent.

U.S. Taxpayers Have the Right to Legal Representation in All IRS Matters

Anytime you need to deal with the IRS, you have the option of hiring a lawyer to represent you. Given the risks involved with underreporting or underpaying your federal tax obligations, it will be advisable to hire a lawyer in many – if not most – circumstances. This is true for both individual taxpayers and business entities.

Some examples of situations in which it will generally be advisable to seek tax law counsel for dealing with the IRS include:

• Responding to an IRS Audit – IRS audits can lead to liability for back taxes, interest and penalties. Taxpayers should not rely on the IRS to calculate their tax liability, but instead, seek advice from experienced tax law counsel.
• Responding to an IRS CI Investigation – Being contacted by IRS Criminal Investigation (IRS CI) is an extremely serious matter. Most federal tax crimes can be prosecuted as felony offenses, and taxpayers targeted by IRS CI can face substantial fines and imprisonment.
• Addressing a Foreign Asset Disclosure Violation – Failing to file an FBAR or comply with the FATCA reporting requirements can lead to civil or criminal penalties. While U.S. taxpayers have options for remedying foreign asset disclosure violations, (i) they must choose the right option, and (ii) they must take action before they get contacted by the IRS.
• Addressing Other Reporting and Tax Payment Deficiencies – Failing to file income tax returns, failing to report taxable income, claiming invalid deductions, failing to collect and remit employment taxes, and other tax law violations all have the potential to lead to an audit or investigation. Addressing these types of violations proactively (with the help of a Virginia tax lawyer) can significantly mitigate taxpayers’ costs and risks. Depending on the circumstances involved, this may mean filing an amended return, or it may mean making a voluntary disclosure.
• Seeking a Settlement Agreement or Officer in Compromise (OIC) – When seeking a settlement agreement or offer in compromise (OIC), it is best to rely on the advice and representation of experienced tax law counsel. There are several factors to consider before seeking a settlement agreement or OIC, and taxpayers must ensure that they take all of the steps necessary to qualify.

Request a Consultation with Virginia Tax Lawyer Kevin E. Thorn

If you have questions about any matter involving the IRS, it is strongly in your best interests to seek professional guidance. To request an appointment with Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, call 703-752-3752, email ket@thornlawgroup.com or contact us confidentially online today.