file:///C:/hsrtp2/articles/161352.htm

Assisting Pro Se Taxpayers

By Charles P. Rettig, Esq.

Hochman, Salkin, Rettig, Toscher & Perez, P.C.

Taxpayers often find themselves in disputes with the Internal Revenue Service and, for whatever reason, are unable or otherwise fail to seek the assistance of competent tax practitioners. The tax administration system can often be confusing for experienced practitioners and may seem impossible for a pro se (unrepresented) taxpayer. California tax practitioners have been actively involved in providing pro bono (i.e., free) services to pro se taxpayers for many years. It is a truly rewarding undertaking for experienced tax practitioners and has proven to be a great method for young tax practitioners to gain meaningful experience in an actual practice environment.

IRS Problem-Solving Day - Pro Bono Program. IRS Problem-Solving Day’s provide an open forum for taxpayers to visit an IRS office in an attempt to resolve a tax dispute or misunderstanding. The IRS Problem-Solving Day - Pro Bono Program was initially coordinated in the Los Angeles District of the Internal Revenue Service. The Pro Bono Program has been coordinated through the efforts of Steve Jensen, District Director, IRS, Los Angeles, and Roy Tresaugue, District Taxpayer Advocate, IRS, Los Angeles. The Pro Bono Program in Los Angeles is co-sponsored by the UCLA Extension Tax Controversy Institute; the Taxation Section of the State Bar of California; the Taxation Section of the Los Angeles County Bar Association; the Taxation Section of the Beverly Hills Bar Association; the Los Angeles Chapter of the Committee on Taxation of the California Society of Certified Public Accountants; and the California Society of Accountants. The Pro Bono Program has been a resounding success!

Taxpayers can attend an IRS Problem Solving Day by making an appointment with the Internal Revenue Service or may simply appearing at Problem-Solving Day. In either event, the IRS has a screening process where it identifies the taxpayer and the general nature of the dispute. Most disputes relate to either collection issues or audit reconsideration issues. Taxpayers with collection-related issues are forwarded to a Collection Division waiting room. Taxpayers with audit reconsideration issues are forwarded to an Examination Division waiting room. An IRS representative then takes taxpayers from the waiting rooms to meet with a particular Revenue Officer, Revenue Agent, or Problem Resolution Specialist.

As part of the Pro Bono Program, volunteers do not meet with taxpayers individually before they have an opportunity to meet with either a Revenue Officer, Revenue Agent, or Problem Resolution Specialist. However, approximately every 15-30 minutes, Pro Bono volunteers go to the Collection Division waiting room and the Examination Division waiting room and explain the nature of the Pro Bono Program. Further, when taxpayers arrived at the IRS and go through the initial screening process, they are provided with literature summarizing the Pro Bono Program and the availability of private tax practitioner’s for consultation.

While the taxpayers are in the waiting rooms, Pro Bono volunteers summarize the nature of the Pro Bono Program and also explain different potential options that may be available during a later meeting with an IRS representative. Further, there is an explanation of different options that were not available -- the IRS does not have the ability to abate a liability that arose out of an entered Tax Court Decision, etc. Taxpayers are also advised of the general nature of an Offer in Compromise or an Installment Agreement, and that all statements by taxpayers to an IRS representative must be completely truthful and accurate (and that they must be able to substantiate each and every statement, if requested by the IRS). In the waiting rooms, the taxpayers merely receive general advice as to the parameters of the Pro Bono Program and the limitations on the ability of the Internal Revenue Service to resolve certain issues.

Following a meeting between a taxpayer and an IRS representative, the taxpayer has the opportunity to meet with a Pro Bono volunteer. Essentially, interactions with taxpayers relate to matters that for some reason were not resolved between the taxpayer and the IRS representative, or matters in which the taxpayer simply didn’t understand why a matter could not be resolved or the potential resolution of a matter. Volunteers typically focus on the disputed issues involved relatively quickly, since the IRS representatives are generally waiting for the taxpayer to return to resolve the disputed issues.

Volunteers do not sign Powers of Attorney (IRS Form 2848), since the taxpayers are present during all discussions with the IRS representatives. Assistance is generally limited to attempting to resolve matters during the Problem-Solving Day. The Pro Bono Program continues to be extremely successful in Los Angeles and elsewhere. Tax practitioners are encouraged to help create or get involved in similar Pro Bono programs in other IRS locations.

Tax Court Pro Se Program. The Tax Court Pro Se Program began approximately 15 years ago in Los Angeles, and was subsequently expanded to the San Diego and San Francisco Tax Court calendars. The program has been extremely well-received. Essentially, experienced tax practitioners appear on the first day of the Tax Court calendar to provide assistance to unrepresented petitioners in an effort to, hopefully, get various matters resolved that would otherwise proceed to litigation.

Prior to the calendar call, pro bono counsel participating in the Pro Se Program typically have an informal meeting with the Tax Court judge to discuss the program. At the commencement of the calendar call, the Judge frequently explains the program, introduces the pro bono counsel participating in the program, and encourages unrepresented petitioners to contact the pro bono counsel before the calendar call. Counsel do not actually represent petitioners or enter an appearance in connection with the Pro Se Program or any subsequent proceedings. Instead, it is the goal of the Pro Se Program to have counsel serve as mediators between the unrepresented petitioner and the Internal Revenue Service in order to resolve potentially resolvable matters. Experience has shown that the Pro Se Program has been extremely successful.

Tax Court Pro Se Video. The Tax Court Pro Se Video represents a true coordination of efforts by the judiciary, government and private tax practitioners. The Pro Se Video began as a project of the California State Bar Taxation Section to provide a video to pro se petitioners advising them of the nature and rules of an IRS Appeals Conference and a Tax Court proceeding. It is important to make sure that pro se petitioners understand that a Tax Court trial is an actual trial, not an extension of the IRS Appeals Conference. The video will be distributed "free of charge" through the Community Tax Law Project of Richmond, Virginia, and others.

Tax Call-In Night. California tax practitioners coordinated a Tax Call-In Night with a major metropolitan newspaper in Los Angeles during "tax season" earlier this year. The newspaper advertised the availability of experienced tax practitioners to answer telephone calls on tax-related questions on a particular evening There were many senior IRS representatives from the IRS Los Angeles District available assisting the practitioners. The program was a tremendous success and involved many surprisingly sophisticated tax questions. However, the mixture of accountants, tax lawyers, and IRS representatives sufficiently confused the telephone callers in a manner that allowed them to believe that they received an appropriate answer!