|
|
2005
IRS REPRESENTATION UPDATE©
By Robert E. McKenzie
1. Continuing IRS Reorganization
1.10 After
reorganization in 2000 we had Area Directors in 16 area offices in charge of
collection and exam. Each area had
several Territory Managers who supervised both collection and exam groups. As of 10/1/04, we now have Area Directors in
charge of only collection or exam in each area. All Territory Managers also specialize in one discipline. The number of areas has been reduced from 16
to 7. The Area Directors for collection
and exam respectively are in different cities within each of those 7
areas. The IRS has decided that specialization
is a much more efficient method for collecting taxes and examining tax returns
than the generalist approach used immediately after reorganization.
Submission Processing Centers
1.20 Eight former service centers dedicated to individual returns of individual 1040 returns: Andover, Atlanta, Austin, Fresno, Kansas City, Brookhaven, Memphis, and Philadelphia.
Two former service centers dedicated to business returns and TE/GE returns: Cincinnati and Ogden.
After 2003 Brookhaven ceased doing return processing
IRS Memphis center will stop
processing paper returns in October 2005
IRS Establishes Office Of
Professional Responsibility
1.30 In January, 2003 the Internal Revenue
Service announced the creation of a new Office of Professional Responsibility
as part of its modernization effort and the appointment of Brien Downing as
director. The Office of
Professional Responsibility will be charged with enhancing the oversight of tax
professionals. It replaces the office of the Director of Practice.
New Director
1.40 In December, 2003 Cono Namorato was appointed as the second Director of the Office of Professional Responsibility, Namorato will lead an organization responsible for licensing “Enrolled Agents. His office will investigate allegations of misconduct and negligence against agents, attorneys, accountants and other professionals representing taxpayers before the IRS. The new office has more than twice the staff that was available under the previous organization. With the additional resources, the Office of Professional Responsibility is concentrating on enforcing the standards of practice for those who represent taxpayers before the IRS as detailed in Circular 230.
New Circular 230 Rules
1.50 In December the Treasury and the IRS announced new Circular 230 rules and bes practices. The rules raise the standard for tax opinions. Even emails giving tax advice now come under the tax opinion standards. The best practices sections are aspirational at this time and not mandatory.
IRS Expands Access to e-Services Products
1.60 The Internal Revenue Service has expanded the number of tax professionals who can use its suite of e-Services incentive products. The expansion meets high demand and requests from tax professionals to use these valuable online tools. Effective March 21, 2005 tax professionals who e-file any combination of five or more accepted individual and business tax returns in a calendar year can use these e-Services products: Disclosure Authorization, Electronic Account Resolution and Transcript Delivery. When first launched in the summer of 2004, the e-Services incentive products were reserved for those who e-filed 100 or more individual returns.
1.70 The IRS developed its e-Services products to meet the needs of the tax practitioner community.
Disclosure Authorization (DA)
Eligible tax professionals can complete disclosure authorization forms, view and modify existing forms, all online. Disclosure Authorization allows tax professionals to electronically submit Form 2848, Power of Attorney and Declaration of Representative; and Form 8821, Tax Information Authorization. Disclosure Authorization expedites processing and issues a real-time acknowledgement of accepted submissions. Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers, may not be submitted using Disclosure Authorization.
Electronic Account Resolution (EAR)
Tax professionals using EAR can quickly resolve clients’ account problems by electronically sending and receiving inquiries about individual or business account problems, refunds, installment agreements, missing payments or notices. Tax professionals must have a power of attorney (Form 2848 only) on file before inquiring into a client’s account. Responses are delivered to a secure electronic mailbox within three business days. Use Disclosure Authorization to submit the Form 2848 to the IRS. Form 8655 authorizations may not be used to access EAR at this time.
Transcript Delivery System (TDS)
TDS resolves clients' need for return and account information quickly in a secure, online session. It allows eligible tax professionals, with a power of attorney (Form 2848 only) on file, to request and receive account transcripts, wage and income transcripts, tax return transcripts, and verification of non-filing letters for individual taxpayers and account transcripts for business taxpayers. Use Disclosure Authorization to submit the Form 2848 to the IRS. Form 8655 authorizations may not be used to access TDS at this time.
Other
e-Services
1.80 Other e-Services products available to all tax professionals include:
e-Services Registration
Tax professionals who want to use any of the e-Services products must register online as individuals to create an electronic account. This is a one-time automated process where the user selects a username, password and personal identification number, or PIN. An on-screen acknowledgement confirms the successful initial registration process.
Preparer Tax Identification Number (PTIN)
Tax professionals may choose to use a PTIN, instead of a Social Security number on returns they prepare for clients. The PTIN application enables a preparer to apply for and receive online a PTIN or look up a forgotten PTIN.
IRS e-file Application
Applicants can complete and submit e-file applications online. Existing participants in IRS e-file can use it to update their applications. Principals of organizations can delegate e-Services authorities to other individuals by identifying them on their IRS e-file application.
Taxpayer Identification Number (TIN) Matching
TIN Matching is a pre-filing service offered to payers of income subject to bac