The Pressure’s On – Working with the Post-Covid IRS



The IRS has an unprecedented backlog of cases they are committed to clearing by the end of the year. This pressure will present a challenge, both for agents and for the tax professionals who will work with them to resolve clients’ tax problems. It could be a wild ride if you’re not fully prepared.

Understanding the structure and organization of the IRS will enable you to better assist your clients if they get into tax trouble. My upcoming June 16th presentation during the Tax Professionals & the IRS: Successfully Working Together Conference, will go into further depth on this topic, but the following provides you with a first step in understanding how the IRS really works.

To begin, it is important to understand that the IRS is organized according to various functions. It is even more important to recognize that those functions do not necessarily talk to each other. Identifying which you are dealing with is key to achieving successful outcomes for your clients.

The IRS is comprised of the following functions:

  • Collections & Compliance exists to enforce compliance with payment obligations.
  • Assessments & Audits evaluates tax returns to ensure accuracy and the legitimacy or the fraudulence of claims and assesses penalties for tax-related offences.
  • Appeals is separate and independent from the other IRS functions. Its role is to resolves tax controversies, usually involving some disputed tax liability.
  • The Criminal Investigation Division investigates potential criminal violations of the Internal Revenue Code and other related financial crimes.
  • The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayer rights.

With this foundational knowledge of IRS functions and organization, you will be well prepared for a deeper dive into IRS organization and personnel, which I will share with you on June 16th. I’ll also offer tips, insights and best practices that you can apply in dealings with the IRS during this unique year. Click here more information, or to register.  See you there!

Source: Ayar Law, Farmington Hills, MI

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