Tax help!

[zorry]

My tax professional will represent me at an audit at her expense.
She call's it standing behind her work.

All she asks is we give her accurate numbers. If a number doesn't seem right, you have to explain it to her at the time the return is filed.

She is not cheap. Never have had anything questioned.

 

[usafk9]

If you get one of those nasty letters, and you did your own return, you are basically on your own with the audit, unless you contact a CPA/ or EA to help you , and your looking at roughly around $200.00 and up per hour. If you let a professional prepare your return, he can help you explain and prove why you took the deductions. Naturally there well be a charge, it is not included with any tax professional in there fee for the preparation of the return. So it is up to you to decide whether it is worth the $80/$90 to purchase the OTC software and get audited, or spend the preparation fee for added protection. Franklin Katz, RTRP, ATP, PA, PB

Frank's Tax & Business Service

315 E. King St.

Kings Mountain, NC28086

Local # 704-739-4039 Toll Free# 877-857-1040

E-Mail: [email protected])

Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services

IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.

I wonder why, when I read some of these posts, I feel like I'm watching a presidential debate when one of the debaters looks in the camera and asks who you are going to trust when the phone rings at 3 AM. Fear sells, I guess.

In fairness, no matter the fancy-looking acronyms after someone's name, unless it says "CPA, EA Attorney-at-law" next to the person's name you pay to prepare your income tax returns, you're still going to have to hire a CPA or Enrolled Agent, or tax lawyer to represent you in case an audit enters into an appeal or has to be argued in front of a appeals officer or revenue officer at the IRS. That's no different if you buy over-the-counter software or buy the service of an over-the-counter tax preparer.

For the uninformed, from IRS Publication 947 from May of 2012:

"Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer."


Emphasis mine.