For your convenience, our most common customer questions are answered right here.
Not finding what you want? If you have a question not answered here, feel free to contact us at (720) 507-1829.
Q: I just got notification of an audit, notice of deficiency, or other correspondence from the IRS. Do I need a lawyer or am I allowed to do it myself?
A: Many taxpayers represent themselves before the IRS and even in Tax Court. The IRS provides many publications that contain guidance for taxpayers on their website IRS.gov. The United States Tax Court also provides information for taxpayers who choose to represent themselves.
Q: What is the difference between a free consultation and a paid consultation?
A: A free consultation is where an attorney can review the facts of your tax matter go over your options as they see it, but normally does not include legal advice. On the other hand, a paid consultation involves reviewing your tax matter and giving you information and legal advice. The difference between the two is that a free consult is basically explaining the services we can perform for you, while a paid consultation is a service for you.
We believe in giving our clients actionable legal advice when they meet with us so that they can understand their tax problem and understand how to resolve their issue on their own, if they so choose. However, reduced consultation rates can apply if you were referred to us from a professional we trust.
Q: I saw that you mentioned a Low Income Taxpayer Clinic in your bio. What is it?
A: Low Income Taxpayer Clinics (LITC) are organizations independent of the IRS that receive grants to provide representation, education, and advocacy for taxpayers that meet certain income requirements. In Colorado, the LITC is run through the University of Denver Sturm College of Law. Taxpayers outside Colorado can find the closest clinic through the Taxpayer Advocate Service website.
Q: What is the difference between a CPA, an Enrolled Agent, and a Tax Attorney?
A: A CPA, or Certified Public Accountant, is an individual who has completed the requisite education in the field of Accountancy, worked for 1-2 years under a CPA, successfully passed a CPA Licensing Examination, and completes the licensing continuing education requirements each year. CPAs are skilled at accounting, which includes finances, bookkeeping and tax returns.
An Enrolled Agent either passed the IRS Special Enrollment Exam or was an IRS employee in a taxpayer-facing field for at least 5 years. The “taxpayer-facing fields” include appeals officer, special agent, revenue officer, revenue agent, tax specialist, tax law specialist, or settlement officer. To become an enrolled agent, anyone can take the Special Enrollment Exam, so long as they have a Preparer Tax Identification Number (PTIN).
A Tax Attorney has successfully completed law school and earned a Juris Doctor, an advanced professional degree. They also must have been admitted to practice law in any of the 50 states by passing a grueling multiple-day bar licensing examination and meet the yearly continuing education requirements of their licensing jurisdiction. Once admitted to practice in any of the 50 states, a tax attorney can practice before the IRS in all 50 states. Tax Attorneys are skilled in interpreting tax law and in representing taxpayers in adversarial proceedings, such as audits or tax court.
Q: I’ve heard of Tax Court. Who can represent me there?
A: All three – Attorneys, CPAs, and Enrolled agents – can represent you in Tax Court, as long as they have a Tax Court bar number. Attorneys are admitted to the Tax Court bar so long as they are admitted to practice in any of the 50 states and are in good standing with their licensing jurisdiction. CPAs and Enrolled Agents must pass a special examination that tests their knowledge of the Tax Court Rules of Practice and Procedure, Federal Taxation, the Federal Rules of Evidence, and legal ethics, including the Model Rules of Professional Conduct of the American Bar Association.
Q: Are there any other courts that can hear a tax case?
A: Federal District Court and the Court of Federal Claims can also hear tax cases. In order to get into these courts, you have to initiate a lawsuit for a refund, which requires payment of the tax.
Tax Court cases can be appealed to the US Court of Appeals, so long as they are not S “small” cases – a status chosen when filing the petition.
Only attorneys can represent you in these courts.
Q: I’ve heard of attorney-client privilege. Is there accountant-client or Enrolled Agent-client privilege?
A: Generally speaking, there is a limited privilege of confidentiality granted by 26 U.S. Code Section 7525 to tax practitioners such as accountants or Enrolled Agents. However, a key limitation of this privilege is that it applies in non-criminal tax matters. This can become problematic if the IRS starts a criminal tax investigation (usually for tax evasion). The attorney-client privilege is a very powerful and well established privilege designed to protect the client and encourage the disclosure of all relevant facts to an attorney, in both criminal and civil matters.
Q: Do you prepare tax returns?
A: Generally, no. A tax return is a public disclosure. If a tax attorney were to prepare a return, it could waive the attorney-client privilege with respect to the items entered on the returns, including income, deductions, assets, etc. This means that the tax attorney could be forced to disclose those pieces of information (as well as client disclosures about those pieces of information) even in an unrelated matter, such as a civil lawsuit.
There are circumstances where we will prepare a return, such as taking a specific legal position, based upon applicable law and regulations, that a CPA may not be comfortable with or in preparing returns necessary to get a taxpayer into compliance before an Offer in Compromise or an Installment Agreement.