Is POA required to intervene-Installment request

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  • Taxadvisor VA
    Senior Member
    • Feb 2013
    • 122

    #1

    Is POA required to intervene-Installment request

    TP has contacted me about some IRS demand letters for past due taxes that he does owe. He has tried to work with IRS, resent Form 9465, and he still is getting demand letters.
    I am his TPD and I wasn't sure if IRS would allow me to intervene. I am not an EA but a now reduced RTRP.

    What's your read?
    Thanks in advance.

    Taxadvisor VA
  • JohnH
    Senior Member
    • Apr 2007
    • 5339

    #2
    If the total owed is less than the minimums for an automatic installment agreement, the fastest way to get a resolution is to call IRS with the client conferenced in on the line. IRS will ask the client a few simple questions and then obtain permission for you to speak with them about the matter.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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    • Taxadvisor VA
      Senior Member
      • Feb 2013
      • 122

      #3
      Installment Plan- POA necessary

      Originally posted by JohnH
      If the total owed is less than the minimums for an automatic installment agreement, the fastest way to get a resolution is to call IRS with the client conferenced in on the line. IRS will ask the client a few simple questions and then obtain permission for you to speak with them about the matter.
      Thanks so much for responding JohnH!

      We are talking big Dollars here > than $10K.
      Does this fact change your advice?

      Thanks for your help.

      Taxadvisor VA

      Comment

      • ATSMAN
        Senior Member
        • Jul 2013
        • 2415

        #4
        If the past due is more than $10K, has he skipped on a previous installment agreement?
        Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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        • Taxadvisor VA
          Senior Member
          • Feb 2013
          • 122

          #5
          POA for Installment Request

          Originally posted by ATSMAN
          If the past due is more than $10K, has he skipped on a previous installment agreement?
          This TP fell seriously behind in getting his taxes done each year. In the first 3 months this year, I prepared 2012,2013, & 2014. He is a successful Realtor who did very well during the down time in the RE market. However, I could never get him to catch up his returns.
          He does owe from 2010/2011/ & 2012.
          I think IRS is ignoring his request to set up installment plan. He is extremely frustrated but it is his fault for not getting his returns completed when he should have.

          TMI- I don't know honestly if he ever tried Form 9465 before b/c when I would suggest it he would blow it off.

          What's your recommendation at this point?

          Thanks ATSMAN,

          Taxadvisor VA

          Comment

          • JohnH
            Senior Member
            • Apr 2007
            • 5339

            #6
            Here are all the installment agreement details.



            If he's just your garden-variety procrastinator, then you'll find this a piece of cake. But often as not, these clients come with a few complications that the conveniently forget to mention to you until it's forced out of them. When you offer a taxpayer an easy way to handle his tax debt and he does nothing, there's usually a time bomb lurking somewhere.

            In any event, a conference call to collections might stop the process. They will probably set up the payment agreement while you're on the line. Or your client might even be able to set it up online (with your help).
            Last edited by JohnH; 07-07-2015, 07:37 PM.
            "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

            Comment

            • ATSMAN
              Senior Member
              • Jul 2013
              • 2415

              #7
              Originally posted by Taxadvisor VA
              This TP fell seriously behind in getting his taxes done each year. In the first 3 months this year, I prepared 2012,2013, & 2014. He is a successful Realtor who did very well during the down time in the RE market. However, I could never get him to catch up his returns.
              He does owe from 2010/2011/ & 2012.
              I think IRS is ignoring his request to set up installment plan. He is extremely frustrated but it is his fault for not getting his returns completed when he should have.

              TMI- I don't know honestly if he ever tried Form 9465 before b/c when I would suggest it he would blow it off.

              What's your recommendation at this point?

              Thanks ATSMAN,

              Taxadvisor VA
              Have you considered OIC if he owes from 2010. Even if OIC is rejected he will be given another opportunity for a payment plan based on his financial disclosure.

              I would also suggest that you get all the transcripts and account statements prior to OIC. You will need a POA for that obviously.
              Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

              Comment

              • AZUKHiker
                Senior Member
                • Nov 2013
                • 128

                #8
                Unless EA, CPA No Collections Contact

                If you aren't an EA, CPA or attorney you cannot represent your client in connection with Collection matters.

                Originally posted by Taxadvisor VA
                TP has contacted me about some IRS demand letters for past due taxes that he does owe. He has tried to work with IRS, resent Form 9465, and he still is getting demand letters.
                I am his TPD and I wasn't sure if IRS would allow me to intervene. I am not an EA but a now reduced RTRP.

                Taxadvisor VA

                Comment

                • Taxadvisor VA
                  Senior Member
                  • Feb 2013
                  • 122

                  #9
                  Tax Credential- Collections

                  Originally posted by AZUKHiker
                  If you aren't an EA, CPA or attorney you cannot represent your client in connection with Collection matters.
                  Thank you for this information.

                  Best Regards,

                  Taxadvisor VA

                  Comment

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