Other Tax Issues

What Types of Matters Should You Retain an IRS Attorney for?

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The decision to hire an IRS attorney is one that should not be taken lightly. Attorneys can be extremely cost prohibitive and complicate matters unnecessarily when they can be resolved relatively easily. In general, I am a big proponent of self-help legal solutions, especially given the variety of informational material that can be found online (including much of what I have published on the subject of taxation). However, there are certain types of matters where I believe an IRS attorney is not only a benefit, but much of the time is an absolute necessity. Here is a quick checklist of the matters that I believe that an IRS attorney should be hired for.

Key Takeaways

  • The decision to hire an IRS attorney is one that should not be taken lightly. Attorneys can be extremely cost prohibitive and complicate matters unnecessarily when they can be resolved relatively easily.
  • Let’s be entirely honest for a second. Criminal charges and criminal investigations can destroy lives and carry very serious consequences.
  • There are many parts of an IRS attorney’s job that are seemingly routine. Most collection matters are handled in roughly the same way (even though each taxpayer’s circumstances and goals are different).

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The IRS Small Business Self-Employed Division

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Introduction to The IRS Small Business Self-Employed Division

The IRS Small Business Self-Employed Division oversees taxpayers and their issues that fall under one or both of these categories. The IRS Small Business Self Employed Division helps taxpayers meet their tax obligations by administering the Internal Revenue Code and applying tax law with “fairness and integrity,” according to the IRS mission statements. According to the IRS, the taxpayer profiles that fall under the IRS Small Business Self Employed Division include fifty-seven million taxpayers, forty-one million self-employed persons; and “[nine] million small businesses with assets of less than $10 million.” [1] An additional profile includes seven million filers of “employment, excise, and estate and gift returns.” [2] According to the IRS, the strategic priorities of the IRS Small Business/Self-Employed division address three types of tax gaps:

Key Takeaways

  • The IRS Small Business Self-Employed Division oversees taxpayers and their issues that fall under one or both of these categories.
  • The IRS Small Business Self-Employed Division’s purpose is also to improve service and business processes, reduce burden, develop human capital, and address strategies that help to promote productivity and improve employee engagement.

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The IRS Tax Exempt and Government Entities Division

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Introduction to the IRS Tax Exempt and Government Entities Division

Established in 1999[1], the Tax Exempt and Government Entities Division protects the public interest by applying tax fairly and provides quality service to customers by helping them understand and comply with applicable tax laws.[2] The Tax Exempt and Government Entities Division serves a customer profile that ranges from small community organizations and municipalities to universities, huge pension funds, state governments, and participants of tax exempt bond transactions.[3] The division’s customer profile also includes those taxpayers that “pay more than $220 billion in employment tax and income tax withholding and control $8.2 trillion in assets.” [4] The division also works with employee plans, exempt organizations, and government entities.

Key Takeaways

  • The customer profile for the IRS Tax Exempt and Government Entities Division represents the following. The division serves the need of three customer segments: Employee Plans, Exempt Organizations, and Government Entities.
  • The IRS Tax Exempt and Government Entities Division taxpayer profile is extended to include 88,000 federal, state, and local entities as well as 550 federal recognized Indian tribes (IRS.gov).
  • Education and communication efforts focus on helping taxpayers understand their tax responsibilities. Efforts include outreach programs and activities.

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The IRS Wage and Investment Division

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About the IRS Wage and Investment Division

The IRS Wage and Investment Division handles roughly ninety million tax returns for individual and married taxpayers. The IRS Wage and Investment Division primarily works with taxpayers that fall under a particular tax profile. Taxpayers that receive W-2 wages, who are employees, and who pay their taxes through withholdings generally fall within the profile that the IRS Wage and Investment Division is responsible for helping. Most taxpayers who contact this division do not do so more than once a year. Finally, many taxpayers associated with the IRS Wage and Investment Division will receive a refund as a result of excess withholdings. The IRS collects third party information from these taxpayers in the form of W2s filed by their employers and information taken from banks, brokerage houses, and other third parties.

Key Takeaways

  • The IRS Wage and Investment Division handles roughly ninety million tax returns for individual and married taxpayers. The IRS Wage and Investment Division primarily works with taxpayers that fall under a particular tax profile.
  • When it comes to administration and ensuring compliance, the IRS Wage and Investment Division’s primary purpose to ensure that returns are prepared correctly.
  • The IRS Wage and Investment Division headquarters office provides strategic and operational direction, which includes managing internal support processes.

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The Current IRS Organization

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The IRS Restructuring and Reform Act of 1998 triggered a comprehensive reorganization of the IRS, which modernized the Service and made it closer to being run like a private sector organization. As such, the IRS organization is led by the Commissioner serving as the chief official, the Chief of Staff and the Deputy Chief of Staff in the executive leadership roles below, and a number of “specialized IRS units” that serve different functions. [1] Staff members from each of these multiple units report to the Commissioner within the IRS Organization. Here is a list of the specialized units within the IRS Organization that report directly to the Commissioner. [2]

Key Takeaways

  • The IRS Restructuring and Reform Act of 1998 triggered a comprehensive reorganization of the IRS, which modernized the Service and made it closer to being run like a private sector organization.
  • Perhaps of most interest within the IRS organization from a tax resolution standpoint is the Services and Enforcement Unit.
  • Another key official within the IRS organization is the Deputy Commissioner for Operations Support, who also reports directly to the Commissioner.

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