Discussion:Client under Audit - what is my play?
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| + | {{ForumReplyPost|UserID=KatieJ|Date=30 October 2009|Text=It sounds to me as though the audit is long since over and has become a final assessment. It's not "almost done" -- it's done. You'll be working with IRS collections, not audit. If it's a final assessment, there is nothing you can do about it now other than to have him pay it, then determine (assuming he will pay you for the work) how much he REALLY owed and file a claim for refund for any overassessment. Your first step would be finding out exactly what the status of this matter is with the IRS, but my guess is that it's a final assessment. | ||
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| + | If it's final and he doesn't have the means to pay it, you can negotiate an installment agreement (that's where the other accountant was headed, it appears, since he has the forms to fill out). Or if he'll never have the means to pay it, he may be able to do an offer in compromise and settle the liability for less. | ||
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| + | Trust me, both you and he will be better off if you refer him to someone who is experienced in dealing with IRS collections. You don't have to tell him you don't want to represent him; tell him you're not competent to handle this kind of matter and refer him to someone (somebody like Irsfixer) who can. You'll be doing him (and yourself) a favor.}} | ||
Revision as of 19:33, 30 October 2009
Discussion Forum Index --> Advanced Tax Questions --> Client under Audit - what is my play?
Discussion Forum Index --> Tax Questions --> Client under Audit - what is my play?
Yt1300inHtown (talk|edits) said: | 30 October 2009 |
| Background - client came from another firm which was working with him on his 2003 IRS audit. A lot of time and effort was put in on it. As far as I can gather, the agent has made serious adjustments based on his findings of unreported income. Client had a falling out with CPA although I am not sure he is telling me exactly why.
From what he has sent me so far (which isn't much), all I see is that back in April of 2009 he was sent the forms to fill out regarding payment arrangements. (Form 433?) This would indicate to me that the deal was almost done. But he didn't fill out the forms of course...he sent me the blanks. It sounds like the agent has made his findings and there is no real arguement to be made. I have had no real contact with the agent because I have had information or background to even discuss anything with him. So now, agent has issued levy on taxpayers accounts and he is flipping out. What is my play? Do I contact the agent and try and buy some time? Based on what? Client is not making this easy on me. I know the client's records are terrible and I see levies issued on other years in the limited amount of documents he sent me. So what do I say to the agent??? I have litte experience with audit proceedings so any help would be solid. TIA YT | |
| 30 October 2009 | |
| If you've already got a feeling that your client is withholding information from you, and you already know that he's had a "disagreement" with a prior accountant, I'd fear that he's just learning what information to withhold from you. He told the prior accountant something, the accountant didn't like it, so he's moved on to you, and now you won't know that information because he knows accountants don't like it.
I don't have any real advice to give you re: dealing with the agent, just advice re: the client. Trust your gut. | |
Yt1300inHtown (talk|edits) said: | 30 October 2009 |
| My gut is that he just doesn't want to pay and has unrealistic expectations on what we can do.
Problem is he is the father of another good client so I can't just tell him to take a hike exactly. | |
| 30 October 2009 | |
| sounds like this is past the audit and into the collections phase
are you sure you are dealing with an 'agent' and not an RO?
If it's not something you know much about, you (and certainly the client) might be better off referring the client to an expert. | |
| 30 October 2009 | |
| It is OK to admit when an engagement is out of your field of expertise.
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| 30 October 2009 | |
| It sounds to me as though the audit is long since over and has become a final assessment. It's not "almost done" -- it's done. You'll be working with IRS collections, not audit. If it's a final assessment, there is nothing you can do about it now other than to have him pay it, then determine (assuming he will pay you for the work) how much he REALLY owed and file a claim for refund for any overassessment. Your first step would be finding out exactly what the status of this matter is with the IRS, but my guess is that it's a final assessment.
If it's final and he doesn't have the means to pay it, you can negotiate an installment agreement (that's where the other accountant was headed, it appears, since he has the forms to fill out). Or if he'll never have the means to pay it, he may be able to do an offer in compromise and settle the liability for less. Trust me, both you and he will be better off if you refer him to someone who is experienced in dealing with IRS collections. You don't have to tell him you don't want to represent him; tell him you're not competent to handle this kind of matter and refer him to someone (somebody like Irsfixer) who can. You'll be doing him (and yourself) a favor. | |
