The Taxpayer Advocate

Where do you go when the IRS representatives who are auditing or processing your return do not seem to understand your problems or situation? One place is the IRS Taxpayer Advocate Service. Its motto is: "We help taxpayers solve problems with the IRS and recommend changes that will prevent them."

The Taxpayer Advocate Service is an IRS program that provides an independent system to assure that tax problems that have not been resolved through normal channels are promptly and fairly handled. The national taxpayer advocate, Nina Olson, heads the program. Each state and service center has at least one local taxpayer advocate who is independent of the local IRS office and reports directly to the national taxpayer advocate. The goals of the Taxpayer Advocate Service are to protect individual taxpayer rights and reduce taxpayer burden. The taxpayer advocate independently represents your interests and concerns within the IRS. This is accomplished in two ways:

• Ensuring that taxpayer problems that have not been resolved through normal channels are promptly and fairly handled.

• Identifying issues that increase the burden upon or create problems for taxpayers, and bringing those issues to the attention of IRS management and making legislative proposals when necessary.

What can you expect from the taxpayer advocate? Your assigned personal advocate will listen to your point of view and will work with you to address your concerns. You can expect the advocate to provide you with the following:

• a "fresh look" at your problem

• timely acknowledgment

• the name and phone number of the individual assigned to your case

• updates on progress

• time frames for action

• speedy resolution

• courteous service

Who may use the Taxpayer Advocate Service? Generally, the Taxpayer Advocate Service can help if, as a result of the application of the tax laws, you:

• are suffering, or are about to suffer, a significant hardship;

• are facing an immediate threat of adverse action;

• will incur significant cost (including fees for professional representation);

• will suffer irreparable injury or long-term adverse impact;

• have experienced a delay of more than 30 days to resolve an issue; or

• have not received a response or resolution by the date promised.

If you have an ongoing issue with the IRS that has not been resolved through normal processes, or you have suffered or are about to suffer a significant hardship as a result of the application of the tax laws, contact the Taxpayer Advocate Service. Note: The Taxpayer Advocate Service is not a substitute for established IRS procedures or the formal appeals process. The Taxpayer Advocate Service cannot reverse legal or technical tax determinations.

What are Citizen Advocacy Panels? In October 1997, President Clinton called for the creation of locally based Citizen Advocacy Panels. The secretary of the treasury agreed with recommendations to establish four prototype panels, one in each of the IRS regions, with the secretary serving as the final selection official for panel members. The IRS tax districts in Seattle, Brooklyn, Milwaukee, and Ft. Lauderdale were chosen as the sites for the new panels because of their varied taxpayer populations as well as their ethnic, cultural, and geographic diversity.

The IRS secured and prepared permanent office and meeting space for each panel in each of the host cities. Staff support, including a manager, analysts, and clerical support, were assigned to the panels on a full-time basis in each location. Telephone systems were designed and installed to allow taxpayers access to the panels 24 hours a day, seven days a week via an 800 number and voice messaging systems. A portion of the appropriated panel budget was apportioned to each panel by the national taxpayer advocate to support customer service initiatives developed by the panels. A website was also established for the panels that was designed by the panel members and capable of receiving online comments from the public.

The panels have worked very hard to publicize their existence and produce solid recommendations. Please take the time to visit their sites and learn more about the projects they are working on and their accomplishments to date.

So, how do you reach the Taxpayer Advocate Service? Call the Taxpayer Advocate Service toll-free telephone number: (877) 777-4778, or TTY/TTD: (800) 829-4059. Call the general IRS toll-free number, (800) 829-1040, and request the Taxpayer Advocate Service. Call, write, or visit the local Taxpayer Advocate Service office for your state. A list of Taxpayer Advocate Service offices may be found in Publication 1546, The Taxpayer Advocate Service of the IRS.

Complete and submit Form 911, Application for Taxpayer Assistance Order. You should provide the following information:

• your name, address, and social security number (or employer identification number)

• your telephone number and hours you can be reached

• your previous attempts to solve the problem, and the office you contacted

• the type of tax return and year(s) involved

• description of the problem or hardship (if applicable)

If you want to authorize another person to discuss the matter or to receive information about your case, use Form 2848, Power of Attorney and Declaration of Representative. You may also want to use Form 2848 Instructions. Or, you may use Form 8821, Tax Information Authorization, if you want another person to receive information about your case but not represent you. You can get these forms at most local IRS offices or by calling the IRS forms-only number, (800) 829-3676.

Editor's note: Roger did his undergraduate studies in accounting at Vanderbilt University. Yolanda earned a B.S. in finance at the University of California. Roger became a California CPA in 1974. Both have done graduate work in the field of taxation. As Enrolled Agents, they are licensed by the Treasury Department to represent and defend clients before the IRS nationwide, in addition to tax preparation. Their book, The Tax Guide for Gamblers, is the most comprehensive book on the subject. See their website, www.rbstaxes.com, for more information regarding their practice, articles, and useful tax links. They do business as RBS Tax Services, are located in Las Vegas, Nevada, and can be reached at (800) 829-7271. They also maintain an office in California. Currently, they are accepting new clients for this year's taxes regardless of where they live. Ask about their early-bird discount.