"what can a tax lawyer do for you?"
In short, it is representation (practice before the IRS) and attorney client privilege. (So, if the judge ask the EA or the CPA to swear under the truth, he/she must tell the truth nothing but the truth. Otherwise, it is a violation of the LAW. Attorney can sneak away by using attorney-client privilege.)
The representation is important. Who know more about the tax law? You or these tax representative?
"have heard most of them scam you in to believing that they will help you?"
That is absolutely correct!!!
The Treasury Department and the Internal Revenue Service in early 2005 issued final regulations amending Circular 230. The revisions are part of a continuing effort to improve ethical standards for tax professionals and to curb abusive tax avoidance transactions.
Circular 230 is applicable to attorneys, accountants and other tax professionals who practice before the IRS. The revisions to Circular 230 provide standards of practice for written advice that tax professionals give to their clients. The final regulations reflect current best practices and are intended to restore and maintain public confidence in tax professionals. These revisions ensure that tax professionals provide adequate advice to their clients, and disclose when their advice is incomplete.
Ensuring that attorneys, accountants and other tax professionals adhere to professional standards and follow the law is one of the IRS’ top enforcement goals. The revisions to Circular 230 are a key component of the strategy to achieve this objective.
The long explaination:
Attorney-client privilege is a legal concept that protects communications between a client and his or her attorney and keeps those communications confidential. This privilege encourages open and honest communication between clients and attorneys.
What Is Practice Before the IRS?
Practice before the IRS covers all matters relating to any of the following.
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Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS.
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Representing a taxpayer at conferences, hearings, or meetings with the IRS.
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Preparing and filing documents with the IRS for a taxpayer.
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Corresponding and communicating
Just preparing a tax return, furnishing information at the request of the IRS, or appearing as a witness for the taxpayer is not practice before the IRS. These acts can be performed by anyone.
Who Can Practice Before the IRS?
Any of the following individuals can practice before the IRS. However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's power of attorney and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Form 2848 can be used for this purpose.
Attorneys. Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or of the District of Columbia may practice before the IRS.
Certified public accountants (CPAs). Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or in the District of Columbia may practice before the IRS.
Enrolled agents. Any enrolled agent in active status may practice before the IRS.
Enrolled actuaries. Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries may practice before the IRS. The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans.
Unenrolled return preparers. An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return.
An unenrolled return preparer is permitted to appear as your representative only before customer service representatives, revenue agents, and examination officers, with respect to an examination regarding the return he or she prepared.
An unenrolled return preparer cannot:
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Represent a taxpayer before other offices of the IRS, such as Collection or Appeals. This includes the Automated Collection System (ACS) unit.
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Execute closing agreements.
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Extend the statutory period for tax assessments or collection of tax.
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Execute waivers.
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Execute claims for refund.
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Receive refund checks.
For more information, see Publication 470.
If the unenrolled return preparer does not meet the requirements for limited representation, you must file Form 8821. The unenrolled return preparer's involvement in your case will be limited to receiving or inspecting your taxpayer information.
Updated March 31, 2006 — The deadline for submitting comments has been changed from April 7 to April 28, 2006; new links were added at the bottom.
IR-2006-22, Feb. 3, 2006
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued a notice proposing amendments to Treasury Department Circular 230.
This provision governs tax professionals who practice before the IRS. Ensuring that tax professionals adhere to professional standards and follow the law is one of the top four enforcement goals for the IRS. This proposed revision of Circular 230 plays a critical part in achieving this goal.
The revisions to Circular 230 proposed today would modify:
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the definition of practice,
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eligibility for enrollment,
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unenrolled practice, and
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the rules concerning contingent fees, conflicts of interest, standards with respect to tax returns and documents, affidavits and other papers, sanctions, discovery, publicity, and appeals.
The proposed regulations also would replace certain terminology to conform to the terminology used in 18 U.S.C. 207, and 5 C.F.R. parts 2637 and 2641 (or superseding regulations). The proposed regulations do not address the standards for written tax advice that were the subject of final amendments to the regulations issued in December 2004 and modified in May 2005.
Today’s announcement follows a thorough review of extensive public comments to a December 2002 advance notice of proposed rulemaking relating to the Office of Professional Responsibility, unenrolled practice, eligibility for enrollment, sanctions and disciplinary proceedings, contingent fees and confidentiality agreements.
A hearing on the proposed regulations is scheduled for Wednesday, June 21, 2006, at 10 a.m. in the IRS auditorium. The Treasury Department and the IRS are requesting comments on the proposed regulations by April 7, 2006. Comments may be submitted to: CC:PA:LPD:PR (REG-122380-02), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-122380-02), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC. Alternatively, taxpayers may submit comments electronically to the IRS Internet site.
2007-07-23 05:36:54
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answer #1
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answered by naekuo 7
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There are absolutely times when you should have qualified representation. You need to be very careful with whom you select to represent you however. There are alot of tax resolution companies out there that are complete scams. Especially some of the larger ones. I am an Enrolled Agent and represent taxpayers in these matters on a daily basis. No one should be selling you on an Offer in Compromise or any other payment arrangement without first analyzing your ability to pay the tax debt and asking you a good number of questions regarding you liability, financial situation and filing history. You should also make sure that you only talk to an Enrolled Agent, a CPA, or an Attorney that specializes in tax representation. Alot of companies will only have you talk to a salesperson upfront that will sell you a so called "pennies on the dollar" offer in compromise or penalty abatement even if you do not qualify...don't fall for it! They have no idea what they are talking about and will charge you huge fees for services you don't need. Even worse, alot of times they won't do the work and you will not be able to reach them. Speak with someone who is qualified first before paying any money or signing any agreement! . I have alot of good information on my web-site that is there free of charge for your reference without having to hire anyone. It should be able to answer a good deal of your questions. If you decide you do wish to have professional representation you are of course welcome contact me. There is no fee and no obligation for the initial telephone conversation. Best of luck.
eTaxrelief.com
2007-07-21 17:54:29
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answer #2
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answered by Chris J, President at eTaxrelief 2
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Have you not heard the old axiom. The man who defends himself is a fool? Not all may be good but the key word here is not all are good. Can they get better leverage with IRS for tax problems I don't believe so. There are rules. You follow rules you follow prongs of what they require or you do not follow them. Will you get better treatment with them with IRS for example. I highly doubt that. Though they may know the laws better than thou. Consider it. IRS tax charge. Would you represent yourself in that case? Before the Internal Revenue Service with all their decades of learning and the ones who wrote these laws or apply them every day of the year 24 hours a day. Even attorneys are smarter than that. A fool i the man who represents himself in the courts. I wont' tell you the stories or the realities of this one and how this is looked on by the courts but it depends what you need. Do you need serious help; might consider that dead beat tax attorney if you are facing serious charges. I would. And I am an accountant with a successful firm. To those that dear test the water, remember this statement, "I may be dumb but I'm not stupid." Oh really now?
Did you know that most juries never convict for psychologically good reasons? What are they? Like a criminal defense attorney some of whom we work with as clients, "thine is one fool who choose to put accused on stand in capitol and other charges." You are heard by the jury, the judge the world. It only takes one not to like you or what you have to say. Lawyers on the hand well we all know they are bums anyway. Seriously though, juries sometimes never convict because the person never opened their mouth who was being tried. Sat there all nice and shaved, all nice and prepped with hair in bun, manicured nails, and the whole winning look. Acting and looking like a poor helpless sleaze bag criminal as they are. Not all of course. You get the point. Remember that if you are ever on a jury. Hey your honor we want to ask the criminal a question. No seriously best not to say that. We want to ask a question of the accused. Will they allow it, well it seems to me they might. One question, your buddies sitting next to you may after all get that conviction because chances are they are guilty anyway. Will they get it otherwise, looking all prim and proper. Well you have seen the news. Open their mouth, speak I tell you speak like the combative you are. You never know you might not even like them when it is done.
Some say this would be unfair tactics. All is fair in love and war and the other side is trying to jerk the public out a conviction all because they know how to play the rules better. Well next time you are on a jury and you think they are guilty, well you get the point. Take the psychology out of play and you may have a fair trial after all. No seriously though, do as you will but he is a fool who believes in the powers of he only that be when it comes to matters of law. Remember what I said, most to all attorneys would not even attempt to plead the case against a court where they are the accused. Remember those TV shows and you'll see why even though they may be shrews in short green suits, sometimes it is life to what we must like and not. Shrew or not, it may very well help you to even be in the same room with them so that you may never have to open your trap and destroy your own case. Could happen, has happened. Remember that.
Good luck whatever you need to do. Some words of wisdom from a wisdomless man. Wayne.
2007-07-19 21:11:04
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answer #4
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answered by Info@bcbsinc.com 2
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