Tax Resolution Advice |
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by Ex-IRS Revenue Officer & IRS Group Manager |
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How Our Enrolled Tax AgentCan Resolve Your IRS Tax Lien
Our Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation. He is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals, also to help resolve IRS tax lien. Tax Lien "IRS Tax Lien" is a tactic that IRS uses to collect back taxes from the delinqunet tax payers by attaching a tax lien on all of a taxpayer's assets.
An IRS tax lien is recorded with one or several county recorders. It lets it be known that you owe back taxes to the IRS. Therefore, it has negative impact on on taxpayer's credit and makes it difficult to finance loans or sell property. The tax lien is activated when a person owes taxes to the IRS, plus accruing interest, penalties, or costs. The IRS tax lien is attached on all real, personal, tangible or intangible properties owned by the tax payer. Even if taxpayer makes partial payment, the IRS tax lien will continue until the balance is paid or the problem is resolved. Wage Garnishment Another legal means of the IRS to collect back taxes is Wage Garnishment. First, the tax payer receives an IRS notice of past due taxes and demands that he/she pays them withing 10 to 30 days. For best results, the tax payer should arrange a payment plan. Otherwise, the IRS will send a “Final Notice” informing the taxpayer of its intenyion to levy. If the matter is not resolved within thirty days IRS will move forward with the wage garnishment.
“Enrolled” means to be licensed to practice by the federal government. “Agent” means authorized to appear in the place of the taxpayer at the IRS. Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the IRS. The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.
Enrolled Agents offer tax resolution advice and solve taxpayers IRS Back Tax Problems. They represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entity with tax-reporting requirements. Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.
Only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all Enrolled Agents specialize in taxation. Enrolled Agents are the only taxpayer representatives who receive their right to practice from the U.S. government (CPAs and attorneys are licensed by the states).
The license is earned in one of two ways: by passing a comprehensive examination which covers all aspects of the tax code or having worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations. All candidates are subjected to a rigorous background check conducted by the IRS.
In addition to the stringent testing and application process, the IRS requires Enrolled Agents to complete 72 hours of continuing professional education, reported every three years, to maintain their Enrolled Agent status. NAEA members are obligated to complete 90 hours per three year reporting period. Because of the knowledge necessary to become an Enrolled Agent and the requirements to maintain the license, there are only about 46,000 practicing Enrolled Agents.
Enrolled Agents are required to abide by the provisions of the Department of Treasury’s Circular 230. This provides the regulations governing the practice of Enrolled Agents before the IRS and providing tax resolution advice to clients. NAEA members are also bound by a Code of Ethics and Rules of Professional Conduct of the Association. Client Privilege and the Enrolled Agent The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) a limited client privilege. This privilege allows confidentiality between the taxpayer and the Enrolled Agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. It is not applicable to the preparation and filing of a tax return. This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege.
The principal concern of the National Association of Enrolled Agents and its members is honest, intelligent and ethical representation of the financial position of taxpayers before the governmental agencies. Members of NAEA must fulfill continuing professional education requirements that exceed the IRS’ required minimum. In addition, NAEA members adhere to a stringent Code of Ethics and Rules of Professional Conduct of the Association, as well as the Treasury Department’s Circular 230 regulations. NAEA members belong to a strong network of experienced, well-trained tax professionals who effectively represent their clients and work to make the tax code fair and reasonably enforced.
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