This was presented to attorneys and CPAs for CLE/CPE credit. The class focused on learning about IRS Audit Representation and Collection Defense and what can be done for their clients. The topics included audit representation and other liability cases, audit defense techniques, and collection defense issues and strategy.

1. IRS Practice Techniques
and Case Studies
Presented by
Sidney Goldin, CPA, MS
Taxation

2. Two Areas of Practice
Within the IRS Framework
• Audit
Representation
• Collection Defense

3. A. Audit Representation and
Other Liability Cases
1. Routine Examinations
2. 1040X (Amended Return Exams)
3. Offer in Compromise (OIC) Liability
Cases
4. Trust Fund Liability Cases – Appeals –
No Lien Filings

4. A. Audit Representation and
Other Liability Cases
(cont’d.)
5. Community Property Split Disputes
Between Spouses
6. Innocent Spouse Cases
7. Transferee Liability Cases (Section
6901)
8. Penalty Liability (Defense)

5. A. Audit Representation and
Other Liability Cases
(cont’d.)
9. IRS Transcript Errors and Issues
10. Other Types of Issues Not Covered
Above
a.
Failure to honor levy
b.
Forcible rescue of seized
property

6. B. Audit Defense
Techniques
1. Exam Interviews –
Power of Attorney Factor
2. No Interview with Client
3. Client’s Lack of Records –
Agent’s Attempt at
Reconstruction of Records
Form 4822 Response
–

7. B. Audit Defense Techniques
(cont’d.)
4. No Show Client
a. Field Audits
b.
Office Audits
c.
Correspondence Audits

8. B. Audit Defense Techniques
(cont’d.)
5. Three Year Assessment Statute Issues
(ASEDs)
a. Significance of statute
to agent
(1)
Leveraging/Manipulating
against agent
b.
statute
Consents to extend statute
– to sign or not to sign –
that is the question

9. B. Audit Defense Techniques
(cont’d.)
6. Consideration for Technical Advice
Memorandum Request (TAM)
Request to IRS National Office
7. Conclusion of Exam
a.
30 day letter
b.
90 day letter
(Statutory
Notice
of Deficiency)

10. C. Collection Defense Cases/Issues
1. Self Reported/Assessed Unpaid or
Underpaid Income Tax
2. Additional Tax Due as Result of Audit
3. Employment Tax Cases – Trust Funds

11. C. Collection Defense Cases/Issues
(cont’d.)
4. Failure to File Tax Returns (1040, 941,
etc.)
5. Notices
6. Final Notices

12. C. Collection Defense Cases/Issues
(cont’d.)
7. CDP Requests and Equivalent
Hearings
8. Levy (continuous and one-time) –
Issues
9. Trust Fund Letters and 4180s

13. D. IRS Collection Defense
Strategy
1. IRS Revenue Officer Visits
a.
Usually unannounced
(1)
Normal abuses
(2)
Counter-Measures/
Defense

14. D. IRS Collection Defense Strategy
(cont’d.)
2. By-Passing Power of Attorneys
a.
Counter-Measures
3. Filing of Collection Due Process (CDP)
Request
4. Equivalent Hearing

15. D. IRS Collection Defense Strategy
(cont’d.)
5. Ten Year Collection Statute (CSEDs)
a.
Issues for revenue officers
(1)
Consents to extend
collection statutes
(again – to sign or not
to sign)

16. D. IRS Collection Defense Strategy
(cont’d.)
6. Intervening Events that Toll 10 Year
Statute and Allow IRS More Time to
Collect Tax
a.
Example – Recent
unnecessary (erroneous)
bankruptcy with client
by bankruptcy attorney
b.
Three year wait to file
bankruptcy
filed
(1)
OIC’s do not toll
this statute

17. D. IRS Collection Defense Strategy
(cont’d.)
7. Collection Appeals Program (CAP) –
When All Other Remedies Are
Exhausted

18. If you have any questions,
please feel free
to contact Sidney:
214-635-2509
sgoldin@gppcpa.com