As a general rule, you should almost never appear at an audit or be interrogated by the Internal Revenue Service or State Taxing Agency if you can be represented by a Licensed Professional such as an Enrolled Agent (EA), Certified Public Accountant (CPA), or an Attorney that has experience in this area. You should not even discuss what you may believe is a simple matter with the IRS or State Taxing Agency.
You can represent yourself, however, any information that you provide to an Agent or Revenue Officer can and often is used to collect money from you. In addition, any information you provide to the IRS or State Taxing Agency may be used to prepare a criminal tax investigation against you so the government can criminally prosecute you!
If you are contacted by the IRS or State Taxing Authority either in person, through phone calls, or correspondence, do not ignore the problem. Failing to respond or ignoring them may lead to an assessment of substantial taxes, penalties and interest which could be followed by the seizure of income and assets including wages, bank accounts, automobiles, and real property.
By ignoring the problem, you could ultimately be forfeiting your legal right to contest a tax assessment.
You should hire a Tax Professional that is qualified and recognized by the IRS to represent you. Only Enrolled Agents (EA’s), Certified Public Accountant (CPA’s), or Attorneys are authorized by the IRS for purposes of representing taxpayers who have tax issues.
Finally, remember that all “Tax Professionals” are not alike. Many are not educated, trained or experienced in dealing with complex tax matters, or know how to interpret the ambiguity associated with the Tax Code and applicable law. This could be devastating to your case and result in the needless assessment of a large tax liability against you.
If you are contacted by the IRS or a State Taxing Authority, the EA’s at Allam Hintzke Tax Group are ready to help you.