Working With Delinquent Taxpayers

Source: Journal of Accountancy

Representing clients who are delinquent in filing individual or business tax returns can be a rewarding practice niche, but it also requires some specialized skills, including:

• Knowledge of changing tax laws.
• Familiarity with tax software from prior years.
• Interpretation of IRS taxpayer transcripts.
• The ability to reconstruct income from Freedom of Information Act requests and other sources.
• An understanding of administrative tax law.
• New approaches to client management.

CPAs who master these skills are typically rewarded with higher hourly rates and the opportunity for many billable hours. They also have the opportunity to resolve difficult and sometimes frightening tax problems for people who are likely to become loyal, long-term clients and great referral sources.

This article also outlines:

• Issues your engagement letter should address.
• Taxpayer information you need to obtain.
• Negotiating with the IRS.
• Dealing with potential criminal problems.

For the complete article, click here and read “Representing Clients With Tax Delinquencies and Deficiencies.”

From the April 2009 issue of Journal of Accountancy, American Institute of Certified Public Accountants, http://www.journalofaccountancy.com/Issues/2009/Apr.