The Alvin Brown & Associates Advantage

We pride ourselves in client care, IRS experience and effective results.

Avoid Improper Tax Representation

J. K. Harris & Co. Tax-Resolution Firm Raided and Investigated by the FBI

A tax attorney is accountable to a Bar Association and the "highest ethical standards" are enforced. Enrolled agents, such as those used by J. K. Harris, have neither Bar Association accountability nor are they required to maintain a confidential relationship with a tax client.

Use A Qualified IRS Tax Attorney

Be careful of tax practitioners who are not attorneys and who will take your money and merely provide a mailing service that only costs them $1.00 for postage. Taxpayers with an IRS problem have tax liabilities they cannot afford to pay. In most of these circumstances, that liability can be eliminated (for pennies on the dollar) in an Offer in Compromise (OIC). Advocacy is required in OIC cases. OICs require aggressive representation by a tax attorney who is prepared to argue that the Offer in Compromise statute, the tax regulations, the legislative history, and the tax policy to give taxpayers a "fresh start" by eliminating all tax liability. The IRS will not rule favorably on an Offer in Compromise unless they are forced to accept it by strong and aggressive advocacy that only a tax attorney can provide. There is legal precedent that requires the IRS to be "reasonable and flexible" in OIC cases in addition to precedent that requires the IRS to consider the facts and circumstances in each case. Strong and relentless advocacy is essential for a favorable OIC result.

Caution: There are many providers of services on the internet who will submit your Offer in Compromise forms. Note that taxpayers complete the forms. These cut-rate "Offer Experts" do little more than mail the forms that you prepare to the IRS. Anyone can mail in an IRS form, even a five year old child. Note the following...

1. Taxpayers need to be advised on the numbers. This is critical because to the extent that you have assets in excess of liabilities, the IRS is not likely to accept an Offer that is less than the net value of your assets.

Example: If you think that you have a net equity of $50,000 in your home, and you put $50,000 as the net equity value of your home, the IRS is likely to argue that your Offer must be at least $50,000 (assuming no liabilities in this example). But an argument can be made that might reduce that $50,000 to zero or some other low number and, therefore, reduce the Offer by $50,000.

2. Does your tax lawyer have adequate "skill and experience?"

Will your tax lawyer be able to advise you on how to value your assets and liabilities. For example, how would you determine your net equity in your home?
Does your tax lawyer have the experience and skill to advise you on how to calculate your income and expenses?
Does your tax lawyer have the skill and experience needed to advise you on the amount of the Offer you should make?

3. Skill and experience is needed in arguing your case.

Does your tax lawyer know the tax law and IRS internal procedures?
Does your tax lawyer know how to argue the facts and the law?
Is your tax lawyer credible?
Does he have IRS experience?
Does he know how the IRS thinks?
Does he know IRS procedures?
Does he know the limits of IRS discretion?
Will he be intimidated by an aggressive IRS Offer specialist?
Will your tax lawyer write a technical memorandum on the facts and the law to accompany your request for an Offer in Compromise?

4. Does your advocate know when to take the Offer to an Appeal level?

Why or when should an Offer be taken to Appeals?
Does your tax lawyer know the Appeal procedures?
Does your tax lawyer know the discretion that an Appeals Conferee has and how to present an Appeals case?
Will your fees cover the Appeal procedure?

5. Is your advocate a Tax Lawyer? Think about it - the issues are based on facts and the law. Unless your advocate knows how to interpret the law to protect you, you will not come away with the lowest offer.

IRS Intimidation: The IRS will take advantage of a taxpayer who represents himself, and likewise if the taxpayer's advocate is weak. If the IRS can push and intimidate, they will push and intimidate. IRS Offer specialists will generally have "collection backgrounds" - they want to collect as much money that they can collect. The IRS must respect your advocate, or your Offer will be higher than it has to be.

This is where a strong advocate with an IRS backgound is helpful. The IRS Offer specialist or Appeals Officer knows that they cannot push a tax lawyer who knows their rules and procedures better than they know their own rules, procedue, and discretion.

6. The Bottom Line: The least expensive advocate for you may cost you a lot of money. If you spend only $295 for someone to "mail" in your Offer forms, then you might be required to make an Offer that will cost you many many thousands of dollars. You need to know that one advocate can cost you a huge amount of money because they did not negotiate the best settlement ($50,000 in extra tax in the above example). The IRS may succeed in rejecting an Offer submitted by one advocate and accepting an Offer on the same case to another Adovcate. Competence in advocacy is obviouosly of critical importance.