Tax Court Representation

[TheGoodnShawn]

Good Afternoon Folks,

As I am sitting here studying for the Enrolled Agent's Exam, I was wondering how becoming an Enrolled Agent would increase my yearly revenue.

If I could pick your brains, I was wondering How would one determine his or her rates to represent a client in Tax Court.

Are there any factors that you take into consideration, retainer fees, a set price, hourly...?

My thanks to you in advance for any ideas given,

S.Miller

[Bird Legs]

Tax Court

I may be incorrect, however, passing the E A Exam will not entitled you to go into tax court. This is a special exam you would be required to take and pass.
Passing the E A exam entitles you to represent clients before the IRS on tax matters,
audits, and also at the appeals level.

[TheGoodnShawn]

The smarter I think I am...

...I always find out otherwise....LOL

Ok, I guess I was thinking that representing a client before the IRS would include tax court.

Seeing that I was incorrect on this......I would like to keep the same question for pricing for Practicing before the IRS.....and add, what would one need to do to represent a client in tax court?

Thanks

[DaveO]

Year round work is one way to increase your income

About 1/3 of my billable time in the summer is spent on representation. Audits, reconsiderations, collections and OIC's can be a source of additional income. Being able to use e-services to pull transcripts is valuable. btw Most of my audit work is referrals and self preparers. Audits of returns I prepared average less than 1 a year. After I have done an audit that person usually stays with me.

[thomtax]

To represent someone before the Tax Court, you must pass a special examination for the Tax Court. I do not remember the exact link, but I think that you can find info at www.naea.com

I looked at it and decided that, besides prestige, I do not have the type client base that could ever justify all that work and study.

Good luck and let us know if you do take the tax court exam.

[joanmcq]

You can, however, have the client file the petition, and if you have POA and have been dealing with the audit up until the petition, the appeals officer will deal with you. Then if that fails and its worth it to the client, they can hire an attorney or someone to represent them in tax court. However, the appeals officer's job is to settle cases so they don't have to go to tax court, so I've never had one go any farther than appeals.

[erchess]

Tax Court Expited Handling

I believe that there is a procedure under which a person who has a relatively small dollar amount at stake can file a brief with the court, which will then compel the IRS to do likewise. Three judges will be appointed to read the briefs and reach a conclusion, which cannot be appealed by either side nor used as a precedent in other cases. If I had a good client who I felt had a legitimate case I would help him or her do this. I would not sign the brief or take money, and I would have an engagement letter stating that I could make no warranty of success. My blood still boils at a case years ago when I was working for one of the big storefront preparers. Our client played a stringed instrument for the North Carolina Symphony and his instrument had been made in the 1700s. Had he ridden the Symphony's bus to out of town concerts he would have had to store his instrument under the bus. He therefore rode his own vehicle to these concerts and deducted the mileage. The IRS disallowed the mileage at audit and appeals because the dunderhead employees could not understand why an antique instrument needed to be kept in a temperature and moisture controlled environment. The amount was small compared to the cost of taking it to tax court and at the urging of my employer, he paid. I think that was terribly unfair. This is precisely why I feel that if the position taken by the Examination Division is not entirely upheld by the Appeals Division and the Courts, the Service should incur substantial financial penalty. I could live with a penalty of say ten times the amount asked for plus reasonable legal fees as the minimum penalty for asking for one penny too much.

[New York Enrolled Agent]

I believe that there is a procedure under which a person who has a relatively small dollar amount at stake can file a brief with the court, which will then compel the IRS to do likewise. Three judges will be appointed to read the briefs and reach a conclusion, which cannot be appealed by either side nor used as a precedent in other cases.

There is NO such process in the Tax Court.
Tax Court cases are heard by a single judge. If the amount in dispute does not exceed $50,000, then a taxpayer can elect "small case" status. The taxpayer files a petition and the IRS now gives an answer. The rules of evidence are relaxed during the trial and the results can not be appealed by either the taxpayer or the IRS.

To represent a taxpayer in Tax Court, a person must be admitted to practice before the Court. §7452 says no qualified person shall be denied admission to practice because of a failure to be a member of any profession or calling. Non-attorneys can show they are "qualified" by passing the Tax Court's written examination. It is quite difficult. It is administered every other year in Washington, DC. The next exam will be given in November of 2008. If you go to the Tax Court website, www.ustaxcourt.gov, click on "press releases" and you can read the press release describing the November, 2006 exam. If you wish to see what the exam looks like, go to www.starkman.com. Jay Starkman has a number of the exams posted there. Some are a little older but look at the most recent one to get a flavor of the conntent.

[sea-tax]

I have heard horror stories about this test. Thanks NYEA for the link I have always wondered how hard it actually is now I can see for myself.