Third Party Contact Violation

[kpangelinan]

Under IRC 7602 (C), it states that the IRS is prohibited to contact any person, other than the taxpayer without prior notification. The code continues to read that an exemption may be allowed if the taxpayer authorized it previously. If an examination is being conducted and is in it's initial stages (client received initial doc request for information), and the examiner contacts the tax preparer, who, once the audit was initiated, the taxpayer didn't authorize anyone, is that in violation of this code even if the taxpayer checked the box on the return authorizing the preparer to discuss the return with the IRS? IRS is saying that they were authorized on the return, which was filed in 2007. The audit was initiated in 2009. Does this code apply only to authorizations after the audit was started? Or is that authorization for all future audits on that year the return was filed?

[ChEAr$]

Without researching it

Under IRC 7602 (C), it states that the IRS is prohibited to contact any person, other than the taxpayer without prior notification. The code continues to read that an exemption may be allowed if the taxpayer authorized it previously. If an examination is being conducted and is in it's initial stages (client received initial doc request for information), and the examiner contacts the tax preparer, who, once the audit was initiated, the taxpayer didn't authorize anyone, is that in violation of this code even if the taxpayer checked the box on the return authorizing the preparer to discuss the return with the IRS? IRS is saying that they were authorized on the return, which was filed in 2007. The audit was initiated in 2009. Does this code apply only to authorizations after the audit was started? Or is that authorization for all future audits on that year the return was filed?

I can remember that when this check the box was first initiated, the stated purpose from IRS was to let them contact preparer to resolve processing issues only, and expired about......
about... 9 months after return was filed.

It was never meant to serve as a POA for audit purposes. Never.

Stand your ground on this one,unless you will represent client with properly executed
POA.

[Gretel]

I agree with Harlan. I also think that once the tax return is processed through the IRS system, they are not allowed to contact you. Only initially if documentation is missing or needs clarification.

Surely not for any audit reason, no matter what for or how soon after the tax return was filed.

[Kram BergGold]

Third Party Designee

Third Party Designee expires on April 15 of the following year so if the 2007 return was timely filed, then in your case this could not be used by taxpayer or IRS as it would have expired on April 15, 2008.

[kpangelinan]

Thanks everyone!

Thanks everyone for your comments and help. I love this site and am proud to be a member.