Who Can Represent Me Before the IRS?

If you are under audit by the IRS, have received a notice of deficiency or the IRS is attempting to collect past due taxes, you can receive representation.  The video below has been prepared by a tax attorney at The McGuire Law Firm to provide information regarding who can represent you before the Internal Revenue Service.

John McGuire is a tax attorney in Denver, Colorado at The McGuire Law Firm.  John’s practice focuses primarily on issues before the IRS, tax planning & analysis and advising individual and business clients on the tax implications of certain transactions such as the purchase or sale of a business.

When is a Collection Due Process Hearing Available?

A taxpayer has the right to a collection due process hearing with the Internal Revenue Service Appeals Office under certain circumstances.  This hearing can be very beneficial to a taxpayer in terms of preventing enforcement action such as a bank levy or wage garnishment and by a means to establish or propose an agreement with the IRS such as an installment agreement or offer in compromise.

The video below has been prepared to provide information as to when a taxpayer may be able to request a collection due process hearing.  If you are experiencing any issues with the IRS, you can speak with a tax attorney, by contacting The McGuire Law Firm.   As a tax attorney John McGuire has assisted many individual and business taxpayers before the IRS, including via collection due process hearings with the IRS Appeals Office.

Denver IRS Tax Attorney

IRS Appeal Rights

What are my rights as a taxpayer?  What appeal rights do I have regarding IRS actions or decisions?  These are common questions a taxpayer may have when a tax liability is owed to the IRS and the taxpayer is in the collection process with the IRS.  The information below has been provided for general information purposes.  If you owe taxes to the IRS and/or the IRS is attempting to collect the tax liability, it is highly recommend you speak with a tax attorney regarding a resolution to the matter.

Many IRS collection actions can be appealed to the IRS Appeals Office.  The appeals office is a separate office from IRS collections and is supposed to make independent decisions apart from IRS collections.  You can review Revenue Procedure 2012-18, which provides more in depth information regarding the IRS appeals’ office independence from collection.

The appeals office follows two main procedures regarding appeal action.  These two procedures would be Collection Due Process (often referred to as CDP) and Collection Appeals Program (CAP).

A Collection Due Process Hearing would be available under the following circumstances:

  • The IRS Filed a Notice of Federal Tax Lien
  • The IRS Issued a Final Notice of Intent to Levy
  • The IRS Issued Notice of Jeopardy Levy
  • The IRS Issued a Notice of Levy on Your State Tax Refund
  • Post Levy you request a hearing

A Collection Appeals Program would be available under the following circumstances:

  • Before or after the IRS files a Notice of Federal Tax Lien
  • Before or after the IRS levies or seizes your property
  • Upon the termination or proposed termination of an installment agreement
  • Upon the rejection of an installment agreement
  • Upon the modification or proposed modification of an installment agreement

A Collection Appeals Program (CAP Appeal) will generally result in a quicker appeals decision and as stated above is available for somewhat of a broader set of circumstances.  However, one should not that you cannot go to court after the CAP Appeal if you disagree with the CAP decision.

Can I represent myself?  This is a common question, and yes, just like in any court matter you can represent yourself, but you may want to consider speaking with a tax attorney if you are not experienced in IRS procedure and tax law. You can also be represented by a family member, or if you are business, a full time employee can represent the business or partners and/or officers of a business can represent the business.

The above article has been prepared by John McGuire of The McGuire Law Firm.  Mr. McGuire’s practice focuses primarily in taxation, including the representation of both individual and business taxpayers before the IRS.

IRS Appeal Rights Denver Tax Attorney

 

Deducting Business Expenses

Can I deduct my meals as a business expense?  Can I deduct this flight as a business expense?  Can I deduct the cost of my clothes or uniform as a business expense?  As a tax attorney, these are common questions I am asked, and rightfully so as everyone wants to take advantage of all potential deductions allowed by the Internal Revenue Code.  Not only is the deductibility of certain business expenses a hot topic with business owners, it is a hot topic and highly litigated topic with the Internal Revenue Service.  In fact, I recall reading a recent annual report to Congress by the Taxpayer Advocate Service whereby the deductibility of trade or business expenses he been one of the top ten most litigates issues for a very long time.  Furthermore, the same report stated that the courts affirmed the position taken by the Internal Revenue Service (the dissallowance 0f the deduction) in the vast majority of cases and that the taxpayer only prevailed (in full) about two-percent (2%) of the time.  The article below is not intended to be legal advice, but rather to provide general information regarding this issue.

First and foremost, we should start with the current law regarding deductions for business expenses.  Internal Revenue Code (the “Code”) Section 162 allows deductions for ordinary and necessary expenses incurred in a business or trade.  What actually constitutes ordinary and necessary may better be understood through an analysis of the case law, which is significant, surrounding the question.  Generally, the determination is made based upon a court’s full review of all facts and circumstances.

Based upon the black and white law under the Code, what constitutes a trade or business for purposes of Section 162.  Perhaps it is ironic that the term “trade or business” is so widely used in the Code, but yet, neither the Code nor the Treasury Regulations provide a definition for Trade or Business.  Personally, I think it would be quite hard to provide a definition for trade or business, especially under the auspices of income tax.  The concept of trade or business has been refined and defined by the courts more so than the Code.  The United States Supreme Court has held and stated that a trade or business is an activity conducted with continuity and regularity, and with the primary purpose of earning a profit.  Albeit broad, I would agree this definition would be sufficient for the majority of businesses I work and assist.

Now that we have an idea of what may constitute a trade or business, what is “ordinary and necessary?”  Again, the Supreme Court has helped provide definitions for these broad, but important terms.  Ordinary has been defined as customary or usual and of common or frequent occurrence in the trade or business.  Necessary has been defined as an expenses that is appropriate and helpful for the development of the business.  Further, it should be noted that some courts have also applied a level of reasonableness to each expense.

John McGuire is a tax attorney and business attorney at The McGuire Law Firm focusing his practice on issues before the IRS, tax planning & analysis and business transactions from formation to sale.

Denver Tax Attorney