Please be sure to check out the Technical Issues page for help on frequently asked questions. If you recently received an IRS or FTB notice, do not ignore it! Often, there are deadlines for taking certain actions, including appeal of proposed assessments or enforced collection. We welcome the opportunity to help you resolve your tax controversy with the IRS or State of California tax agencies.

(This section for my clients contains copies of newsletters, highlights of tax law changes, and other items)

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On this site, I will provide you with valuable information about my background, qualifications and the types of services that I offer.   I have included some important self-help links as well as  technical discussions on a variety of topics. The link above takes you to the IRS frequently updated website concerning the stimulus payments that are going to be issued in 2008. As reminder, these payments will be made ONLY to those taxpayers who file their 2007 returns.

If you need assistance getting a resolution to an IRS tax audit or State tax audit, IRS collection controversy, and IRS appeal or other tax-related problem with any income or employment tax agency, help is just and E-mail or phone call away!   From my 30+ years of inside-the-IRS experience, I guarantee that the earlier you seek and receive help for resolving your tax matter, the faster you can resume a normal life. 

An excellent analogy concerning tax controversies is that IRS tax audit and collection problems, along with those of the State of California tax agencies (FTB and EDD), and other State tax agencies, are much like tooth decay.  They will just get worse if ignored.  I recommend that you make a decision TODAY to get help from a tax resolution specialist before your tax issues become so serious that they will require more effort (and cost) to resolve, or result in significant financial consequences.   With over 30 years of experience within the IRS, I have extensive inside knowledge and understanding of their processes and procedures.  My knowledge of those critical aspects will help me get you a resolution in the shortest amount of time with the least amount of financial impact.   Effectively resolving a tax controversy, including the filing of and negotiating an IRS audit or collection appeal, can and often is a very complex process that requires specialized knowledge and experience.

With today's technology, I am able to assist clients with professional representation, consultation and return preparation services throughout the United States!  I have several clients in other parts of the world (either U.S. citizens living abroad, or foreign nationals with U.S. property interest or income).  As an Enrolled Agent licensed by the United States Treasury Department, I am authorized to practice in all 50 states.  By comparison, CPAs and Attorneys are licensed by a specific State and are generally restricted to practicing within that State. 

As mentioned before, the help you need for the resolution of your IRS or State tax controversy or tax audit, or any form of IRS appeal is just an E-mail or phone call away!

STANDARD MILEAGE ALLOWANCE RATE UPDATE

Standard mileage rate increases to 50.5¢ for 2008 In 2007, the IRS announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) would be 48.5¢ for business travel. That's 4¢ more than the 44.5¢ allowance for 2006 business travel. This increase is due to higher prices for vehicles and fuel.  Beginning in 2008, the standard mileage rate goes even higher to 50.5. Here are all the new 2008 rates:   50.5 cents per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations. Background Information When you first buy a car and use it in your business, you have the option of using the standard mileage allowance or actual expenses.  To use the standard allowance, you MUST use it in the first year you begin using the car for business.  You can switch later.   However, with today's high cost of fuel, it may result in more tax savings to use ACTUAL vs. the STANDARD method.    The standard mileage rate may not be used for a purchased auto if: it was previously depreciated using a method other than straight-line for its estimated useful life; a Code Sec. 179 expensing deduction was claimed for the auto; the taxpayer depreciated it using MACRS under Code Sec. 168; or the vehicle is used for hire, such as a taxicab. (Rev Proc 2006-49, Sec. 5.06) Also, the standard mileage rate can't be used to compute the deductible expenses of five or more autos owned or leased by a taxpayer and used simultaneously (such as in fleet operations). (Rev Proc 2006-49, Sec. 5.06(1)(b)). A taxpayer who uses the mileage allowance method for an auto he owns may switch in a later year to deducting the business connected portion of actual expenses, so long as he depreciates it from that point on using straight line depreciation over the auto's remaining life. The depreciation deductions would still be subject to the Code Sec. 280F dollar caps. (Rev Proc 2006-49, Sec. 5.06(3)) A taxpayer may use the mileage allowance method for a leased auto only if he uses that method (or a FAVR allowance method) for the entire lease period (including renewals). If the lease period began before '98, this rule applies only for the post-'97 portion of the lease period (including renewals). (Rev Proc 2006-49, Sec. 5.06(2)) Both methods require that you maintain good records (a log) that support your claimed annual TOTAL, BUSINESS, COMMUTING, and other PERSONAL miles.  The sum of your business, commuting and personal miles must equal your TOTAL miles.  Keep repair, tire replacement and maintenance receipts to prove your expenses.  Those documents also establish your odometer reading at the time of each service.

BE AWARE OF IRS SCAMS!!!!!

There are a lot of E-mails circulating that appear to be from the IRS.  I have personally received some of these scam E-mails.  They tell you about alleged unclaimed refunds or other items that require you to submit your personal information - such as Social Security Number, etc. - to get the money or other benefit.  According to the IRS, the origin of these E-mails is usually a foreign country. The IRS NEVER sends out unsolicited E-mails to taxpayers.  Period.  All IRS communications are by mail, or by FAX (and - fax communication will occur after you have established contact with the IRS and provided them with your fax number and authorization to use it).    Please be very cautious when you receive any unsolicited E-mail request asking for your financial information.  Many of these fraudulent E-mails "steal" the logos and website designs of legitimate companies - such as PayPal, banks, savings and loans, and other institutions.    They appear legitimate, but they are NOT!

_______________________

If you need help or assistance with:

• tax return preparation,

• tax consultation,

• tax controversy resolution (IRS audit or an appeal, IRS Collection, or Franchise Tax Board (FTB)  audit or collection problem resolution),

• IRS expert witness (litigation)

then I encourage you to read the extensive content on this website.  

I retired in September 2000 as the Associate Chief of the IRS Appeals Division in Los Angeles, following many years of having held managerial and technical positions in the Examination and Collection functions.  I have extensive inside-the-IRS experience in  three operations/divisions (Collection, Examination and Appeals) that few other practitioners possess.  By having this extensive knowledge of IRS policies, procedures and practices, I am both highly qualified and successful in getting resolution of my clients' tax issues quickly and efficiently.    The primary focus of my practice is handling IRS appeals of both collection and tax audit controversies.

If you are involved in litigation with the IRS, or litigation related to IRS practices and procedures, and you are in need of an IRS expert witness, then please contact me.   With 34 years of IRS service, and experience in the IRS Collection, Examination and Appeals Divisions, I am well qualified to testify concerning  evaluate IRS procedures and practices.

GENERAL DISCLAIMER

Former IRS Collection, Audit and Appeals Experience

To give you a better understanding of my qualifications, I want to spend some time discussing my thirty-plus years in technical and managerial positions with the Internal Revenue Service (IRS). 

During my extensive and successful IRS career, I gained valuable experience in the following positions within the IRS Collection, Examination and Appeals Divisions: 

• Revenue Officer (IRS Collection Division)

• Acting Office Group and Field Manager positions

• Revenue Agent (IRS Audit Division)

• Classroom and on-the-job training Instructor

• Employment Tax Specialist

• Large Case Team Revenue Agent

• Computer Audit Specialist

• District Conferee (in the former District Conference Staff that merged with Appeals)

• Field Examination Group Manager (West L.A. and the former Hollywood IRS Offices)

• Associate Chief of the Los Angeles Appeals Office (IRS Appeals)

• Acting Regional Director of Appeals for the Western Region

The many technical and managerial positions I held within the IRS provide me with in-depth  knowledge of tax law as well as the policies and practices of the IRS Audit, IRS Collection and IRS Appeals Divisions.  In  representing you in the professional resolution of your tax controversy - whether an IRS, FTB or other State audit or collection matter, my experience of having been on the "other side of the table" enables me to guide you through the maze of the IRS and other agency collection, examination and appeals processes.   My objective, as a Tax Resolution Professional and your representative, is to use my extensive tax law knowledge and decades of IRS experience to negotiate a favorable resolution of your audit or collection tax controversy case.   

To represent you before the IRS or the State of California taxing authorities (FTB, EDD and BOE), your tax resolution professional must be an Enrolled Agent (EA), Attorney or CPA.  CPAs and Attorneys are licensed by individual States and are usually restricted to practice within those states.  However, Enrolled Agents are licensed by the United States Government (United States Treasury, Internal Revenue Service) and can practice in all 50 states.  Further, Enrolled Agents are tax law specialists.  Only a percentage of attorneys and CPAs specialize in assisting clients with resolution of a tax controversy in an income or other type of tax audit or collection situation.

Why select me for the resolution of your tax controversy?

You already may have visited numerous websites in search of the right person to represent you or to prepare your returns.  There are literally thousands of practitioners offering tax resolution and preparation services.  Many of these practitioners are very competent and worthy of your trust and business.  Others have no business taking your money when they lack the skills, knowledge, and/or commitment to do the absolute best job in representing you. 

While I was still working at the IRS, my staff and I certainly encountered both kinds of representatives.  If the practitioner was really incompetent, we would contact our Washington Office of Professional Responsibility (then called the Director of Practice) to recommend that the individual be barred from representing clients before the IRS.  An incompetent representative not only failed to assist their client with a resolution, but in certain cases, actually made matters worse for the taxpayer. 

Determining who you should trust with your financial affairs is a major decision that you should not take lightly.  I can suggest five  reasons why I believe I merit your trust and confidence to help you with your IRS or other tax agency appeal, tax controversy or return preparation needs. 

First, I have the in-depth tax knowledge and inside the IRS experience to effectively represent you.  I understand how the IRS works internally and that allows me to predict how they will most likely approach your particular tax controversy, and even more importantly - how best to get you the least costly resolution of your tax controversy case.  I know the responsibilities and settlement authority of most categories of IRS employees.  I do not waste my time (or my client's money) discussing matters with employees who simply lack the authority to resolve a particular controversy.   State tax agencies operate similar to the IRS, so my extensive IRS background assists me in working with employees from those other agencies.

Second, I limit the number of clients that I represent.  This ensures that you will always have quick access to me.  Think of this scenario.  You open your Saturday mail and find a threatening notice from the IRS.  Understandably, you are very concerned - and  want to talk with your representative about this notice.  With the majority of representation firms, you will be unable to talk to anyone until the following Monday (and that assumes that the individual will return your call at that time...). 

As my client, you will have my home number and cell number so you can call me any time you need to discuss something about your case.  For example, if you receive an unexpected threatening IRS Notice in Saturday's mail, we need to discuss it that Saturday - not the following week.  I will then tell you what it means and how I plan to deal with it. 

As my existing and former clients will confirm, I am typically available by E-mail 7 days a week - from early morning until late at night.  I tell my clients that I do not want them stressed out over a weekend because of concern about something like a tax notice they need to discuss with me.  I ask them to E-mail or call  me so I can give them an explanation of the Notice and reassurance that I will take whatever action is required on Monday morning. 

Comments I have heard from former and current clients (who left other representatives to have me represent them) convince me that immediate availability and responsiveness are seldom attributes associated with large production-mill firms.  Almost all of these firms advertise on the Internet and occasionally on television.  They are lightning-quick to get your hefty retainer, but then - good luck on getting help for your tax controversy. 

If a tax resolution company requests a very large payment up front, that may be a warning sign to you - particularly if they offer to represent you for a flat fee.   Consider this.  Once they have all your money, there is NO incentive to provide services to you (sounds a bit like an HMO?).   Most reputable firms I know will ask for a reasonable retainer up front, and then bill you for whatever services are provided in the resolution of your case. 

Here is something you may find very interesting.  Did you know that a number of the large firms that show prestigious buildings or offices in their ads are simply renting space in these office buildings by the hour to meet with their client?  Once the client leaves the meeting and is in the elevator, the magnetic or other sign is taken off the door so that the next hourly-renter can put up his or her sign for their client!   Check the tenant directory in the lobby - likely, the firm you are considering retaining is NOT listed as a tenant.  For the firms that do rent such space permanently, that cost is very expensive - and it is passed on to their clients!

In these large national tax resolution firms, each of their professionals is typically assigned as many as 200 clients!  How do I know this?  I was contacted in the summer of 2005 by such a firm and offered a high-level position with them.  When I asked about workload, I was told that their "executives" each handle about 200 clients.  When I asked the President of the firm how any representative could possibly be responsive to that many clients, his comment was, "We have a unique method for doing this." That is the only explanation I received.  Having had several of that firm's former clients retain me after receiving inadequate representation, I quickly declined the offer.      

If you are paying for representation, you, the client, have every right to expect timely response to your inquiries and actions on your case.  That simply will not happen in a large production-mill type firm where each employee is burdened with an unreasonable number of client cases. 

Former clients of those firms who left (often forfeiting large retainers) and retained me have shared their frustration with being unable to reach their appointed representative after leaving many voice messages or E-mails.  As a last resort, they go up the chain of command to their representative's superior hoping for (but seldom receiving...) a resolution of their problem.  

If you have been calling one of these firms to discuss representation and not receiving a timely call-back, then that should be another warning to you.  Once they have your retainer, they likely will ignore you and focus their efforts in finding and signing up even more clients - in spite of the fact they have a fraction of the resources required to timely service the clients they already have signed up. 

If you are currently involved with one of these large firms, have paid a large non-refundable retainer, and are receiving inadequate service, you may wish to retain me as a consultant to assist you in getting your firm to do the right thing on your IRS appeal or other controversy. 

Please understand that you do need to exercise caution when deciding to simply walk away from a representation engagement.  Many professionals have early termination clauses or forfeiture of retainer provisions in their Engagement Letters.  Rather than lose your retainer, make them do what is right!!!  I represent a serious threat to any firm that is negligent in their fiduciary responsibilities to their client.   I have given trial testimony in a civil mal practice case involving a CPA.  Use my experience and knowledge to your advantage if you have already paid a significant sum to a representative and they are not meeting their fiduciary responsibilities to you!    

Whether you retain me, or some other professional, my recommendation is to stay clear of production-mill firms.  Many have testimonials on their websites quoting a few clients for whom things went right.  Do not stop there!   I recommend you do some Google research on the firm.   You likely will find extensive adverse feedback from their other clients.  The Better Business Bureau is a good source for information on these firms as well.   For instance, here is one of their reports on a large firm that does an extensive amount of advertising, but (per the BBB), fails to deliver on their promise. 

One other point - if you retain my services, you will be working solely and directly with me - not an associate, paralegal or clerical type. 

I have been asked what is a "certified" tax resolution specialist.  That is a good question.  Someone, somewhere appears to have started a self-certification campaign providing the label of "certified" to those who pay a fee or otherwise join some organization.   The ONLY licensing bodies for professionals - authorizing client representation before the IRS - are the United States Treasury Department (for Enrolled Agents and Enrolled Actuaries), and the State Bars and Accounting bodies (such as the California State Bar who licenses attorneys in California).  

In addition to the basic licensing requirement, membership in the California Society of Enrolled Agents (CSEA) (or similar organizations of other States), and the National Association of Enrolled Agents (NAEA) means that the EA has met continuing educational requirements beyond what the US Treasury requires.  You should want a representative who continually strives to keep their skills sharp and current to provide you with the best possible representation. 

What I believe is important is that your representative is properly licensed, is a member of recognized professional societies, and has the education and experience to maximize the probability of a cost-effective resolution to your tax controversy.    Further - everything else being equal, I firmly believe that a representative who has had extensive experience within the Internal Revenue Service, and understands the inner-workings of that agency - including its directives and procedures - is the one best qualified to get you the most beneficial resolution.

My clients appreciate the fact that I am available most nights and weekends for priority matters.    As stated previously, my clients have my personal cell and home phone numbers so they can always reach me to assist them with any sort of emergency situation (such as a Notice of Levy or Federal Tax Lien that arrives on Saturday).  This level of access gives my clients piece of mind knowing that I am just a quick phone call or E-mail away.  You will have to decide if having immediate access to your professional representative is important in pursuing the prompt and effective resolution of your IRS or other agency tax controversy!   

Third, my service fees are among the lowest in the industry.  Why?  I can give you several reasons:

1. I keep my costs down by minimizing advertising costs and expensive office space.   My clients come by way of this website (that ranks high on Google and other search engines) and by referrals (often from other practitioners who have a client that needs "insider experience"). 

2. I utilize very high-speed computers, 5-megabit super-fast Internet access, LaCerte tax software, and a comprehensive RIA on-line tax research service that reduce my time in representation, return preparation and tax research.  I also subscribe to DataQuick - one of the services IRS employees used at the IRS to review a taxpayers' public records.  I also am authorized to access to the IRS database (through eServices).  Access to IRS information about your account is important.  Wouldn't you agree that it is critical that your representative know what the IRS knows about you when negotiating the resolution of your tax case?  

   I recommend that you ask other representatives you are considering for retention - "What research services do you subscribe to in your practice?"  If they do not subscribe to a high-end service (like RIA or CCH - two of the best in my experience), then I would recommend you continue looking.   While purchasing this level of sophisticated  research access is expensive, the bottom line is that these great products enable me to resolve cases more quickly (saving me time - and you fees). This reduces my overall costs to provide representation.  I have selected RIA for my practice because of their extensive and current content, high level of support and very competitive pricing.

3. I have a retirement pension from the IRS, so I can afford to keep my fees down since helping you is not the sole source of my livelihood.   

Fourth, I encourage my clients to do as much of the preparation work (following my guidance) as possible.  Why pay me (or any other professional) to create adding machine tapes of receipts, or to fill in basic information on forms?  You should NOT have to pay a professional to do these simple tasks!  What you need tax resolution services for are the following:  

• in an IRS or State collection tax controversy resolution,

  • for ensuring (by a through review) that documents are properly completed, and present your financial situation in the best possible light for your benefit, and/or

  • in negotiating a resolution of your collection deficiency for the lowest required amount for an offer in compromise or installment agreement;

• in an IRS or State audit tax controversy resolution,

  • that your evidence sufficiently supports the deductibility of an item of expense, or

  • that your reported income is accurately calculated, or

  • that the non-taxability of a deposit or transaction is accepted.

Many of my clients have significant liabilities with the IRS or other tax agencies - and often hefty debts with other creditors.  The absolute last thing they need are expensive representation fees to add to their financial burden.  Therefore, I strive to find ways to help clients conserve their precious resources by encouraging them to do as much "leg-work" on their own case as possible.  That minimizes the fees they have to pay for my professional representation / resolution services.   

One way I accomplish this for my tax controversy clients is to provide them with the required and current PDF fill-in forms, along with guidance for their completion.  Once my client completes and E-mails me the forms, I carefully review them for errors or unclear entries, and then work with my client to make whatever changes or attachments that I deem are necessary to ensure favorable acceptance by the tax agency. 

My clients appreciate the opportunity to minimize their total cost for my services to just those specific areas (such as face-to-face or over the phone negotiation with the IRS or State agency) where they really need my skills for resolving their tax controversy.

Finally,  it is important that your representative keep current on new tax developments - legislation, litigation and tax agency procedural changes.  As mentioned previously, I subscribe to RIA - a well-known and highly respected tax service.  In fact, this resource service is used by IRS agents, Appeals Officers, managers and other employees in their search for the right answer to technical and procedural issues.  I used RIA for most of my IRS career.   The image below appears on the RIA website (November, 2006):

As part of the RIA service,  I receive daily updates in the areas of my practice so that I can continue to provide the best possible service to my clients.   Without these tools, no representative (in my opinion) can effectively represent you before the IRS - or any other tax agency. 

In addition to this research service, I attend the annual CSEA Super Seminar each year in Las Vegas.   This is an outstanding opportunity for me and many other EA's to keep abreast of the latest trends, laws and procedural updates through presentations from highly respected tax attorneys and other professionals from around the U. S. 

I hope these five reasons merit your confidence in my ability to effectively represent you in your tax controversy, or to provide you with tax preparation or consultation services.  I take my representation  responsibilities to my clients very seriously.  Much of my practice is based upon referrals.   Working closely and effectively with clients in getting them the best possible resolution to their tax controversy is the most effective way to grow a business based upon client recommendations.     

Tax Practice Areas

The four broad categories of services that I offer are: 

• Tax Return Preparation

• Tax Controversy (resolution of a tax audit or collection matter)

• Consultation

• Expert Witness

Tax Return Preparation

There are many self-help income tax return preparation products on the market today for preparing your 1040, 540 and other tax returns.  Some of these products are actually quite good - particularly if you have some basic understanding of income tax law.  One of the better-known products uses the interview technique to guide its user through the process of preparing their own income tax returns for the IRS and their State. 

While the interview concept is generally effective, the potential for error still exists because of the technical complexity of the subject matter of some interview questions.  A wrong response could result in an erroneous reporting of one or more transactions - and that could lead to an audit which, in turn, will likely result in additional tax, penalties, and interest - as well as representation fees for resolution of the income tax controversy.    

To illustrate a complexity of the law, here is a simple - but not uncommon - situation.  If you receive a piece of property from a relative - by gift or bequest - do you know what your basis (cost value) will be when you sell it?  Your basis will be different depending upon whether you received it as a GIFT or by way of an INHERITANCE.  If by mistake you use the wrong basis, you will either pay too much income tax (which the IRS or FTB likely will keep unless you find out about the error and file an amended return within the statute of limitations period), or pay too little tax and end up owing the IRS/FTB a bundle (including interest and maybe penalties) when they catch up with you for an audit.

The tax resolution specialist fees associated with defending you in the resolution of a tax controversy before the IRS or FTB because of errors in your income tax return likely will end up costing you many times the savings you believe you will achieve by preparing your own tax return. 

You also need to aware that selecting a low-cost service that cranks out income tax returns like a puppy mill may result in adverse financial consequences for you if your tax return is inaccurate. Some of these types of firms get targeted by the IRS (if the firm makes an unacceptable number of errors on clients' returns that is discovered during return processing or audits), and then ALL of their clients get audited!  My advice to you is to stay clear of firms owned or managed by an individual who is NOT an E. A., CPA or Attorney.

It is also important to inquire about the qualifications of the person doing your return.  Please consider the potential for error if they have a very limited, shallow exposure in tax law.   Below are some warning signs that if they appear during your conversation or meeting with a tax preparer, you need to grab your documents and run!  Be very cautious if the preparer:

• promises you a refund before inspecting your records

• suggests that the IRS allows "standard amounts" for certain types of deductions

• does not ask you to complete a tax organizer wherein you record information about your family, income and expenses for the tax year

• does not ask to see copies of all W-2s, 1099s, broker statements and other information documents you should have received from the tax agencies or third parties

• does not ask to review escrow settlement documents on purchases and sales of real property

• does not ask for a copy of your prior year return to review as part of the preparation process

There is no such thing as "standard amounts" the IRS or FTB allows you (other than the Standard Deduction if you do not itemize). 

Please understand that intentionally overstating your deductions (or not reporting all of your income) for the purpose of reducing your income tax liability (to either generate a larger refund or reduce the amount you owe) can have serious consequences.

Minimize the probability of an IRS audit (or FTB audit), with the possible assessment of additional tax, penalties and interest by having your income tax returns prepared by a tax professional who is an Enrolled Agent, or by a CPA or Tax Attorney who specializes in tax law.   Each of these three classes of professionals, particularly if the specific individual you chose to prepare your income tax return is also a Tax Resolution Specialist, can best prepare your return.  Further, if your tax return is selected for a tax audit, any one of these three categories of individuals is qualified to represent you for an audit in the resolution of your tax controversy and, if necessary, through the administrative appeals process.

As both an Enrolled Agent and a Tax Resolution Specialist, I am available to prepare your Federal and California State income tax returns based upon the information you provide.   For you who have limited (or no) Internet access and also have mobility problems, I can travel to your office or home if you are within commuting distance of Burbank, CA.  

With the growing number of individuals using the Internet, the vast majority of my clients are pleased to have me prepare their returns using Email (with attachments) and the Web.  My furthest tax return preparation clients are United Kingdom citizens (who own rental property in Florida).   I have been able to assist them in meeting their 1040NR filing requirements via the Internet even though we are thousands of miles apart!

To illustrate how I use the Internet, after receiving the Engagement Letter and deposit, I Email a link to a special section of this website that contains a Tax Organizer.   If my client is familiar with and has access to Excel, I E-mail that version of the Tax Organizer to them.   

My client completes the Organizer and submits it on line, or saves their Excel organizer and E-mails it back to me.  The required documents (W-2's, 1099's, 1098's, prior year federal/state returns, etc.) are either scanned and E-mailed, or faxed/mailed to me.  I review their responses and documents, and then follow-up with any questions I have that require clarification. 

Once this process is completed, I draft the returns and E-mail PDF (Adobe Acrobat) drafts to my client for review.  Once my client approves the draft and sends me the balance due (by check, credit card or by PayPal), I finalize and mail my clients their returns for filing, or file them electronically, if that is their preference.  

My clients have told me how great it is to be able to use the Internet for this entire process.  It saved them time off work, travel time and travel costs (the latter is very significant with today's high gas rates)! 

For the last several filing seasons, many of my clients utilized Pay Pal (many people already use Pay Pal for eBay and other online activities) for payment of preparation, consultation and tax controversy representation fees.  A significant number of my clients today use PayPal for payment of retainers and  other fees for services.  They appreciate this convenience.  In 2006, I added credit cards payment options for services, giving clients the ability to schedule out their cost for representation or preparation over a number of months, if necessary.

My preparation fee is very competitive.  Remember, in addition to PayPal, I accept VISA, MasterCard, American Express and Discover Card as a convenience for my clients.  Whether you are looking for an income tax service in Burbank California or anywhere else in the country, I am as close as a phone call or E-mail.

Tax Controversy Resolution (representation before the IRS or State Agencies)

This is important!  If you receive any kind of a tax notice from the IRS, FTB, EDD or BOE, you MUST acknowledge it and respond promptly.  Most notices contain deadlines for responding or taking certain actions.  You do NOT want to miss those deadlines as it could adversely impact your appeal rights and result in a more costly resolution of your tax controversy.

Having said that, I strongly recommend that you consult a tax resolution specialist or other tax professional before responding, and certainly before sending information or additional money to the IRS.  It is not uncommon for errors to occur in the amount that IRS, FTB or other tax agency claims you owe.  Please keep in mind that as an Enrolled Agent, I can represent you at an IRS, FTB or EDD audit, collection or appeal without you having to take time off work to attend conferences. 

Just as important as it is to have your income tax returns prepared by someone who understands the tax law, it is just as important to be represented in the resolution of a tax controversy, whether it is an IRS audit, or audit by the FTB or State agency,  by a tax resolution specialist who, as your advocate, is skilled in understanding and presenting the facts and law as they apply to your case.   As mentioned before, I am authorized to represent you and negotiate a resolution of your tax controversy case before the Collection, Examination (Audit) and Appeals organizations of the IRS, as well as all of the State of California tax agencies.  

My goal will be to obtain resolution of your tax controversy on the most favorable basis possible.  The primary focus of my practice is in working with the IRS Audit, IRS Collection and IRS Appeals organizations.  I fully understand their processes, the Internal Revenue Manual, as well as the evaluative criteria for IRS personnel.   All of this information is very important to effective resolution of your tax controversy by negotiation on your behalf during an audit, the appeal of an audit, an Offer in Compromise or any other IRS action.    

The FTB operates similarly to the IRS, although there are differences in a number of areas (such as in the administrative appeal of a field decision).   Given my extensive IRS background, I am easily able to transfer that knowledge and experience in helping a client with a State tax issue.

My Background in Appeals

Almost without exception, my clients are unfamiliar with the internal operation of the IRS, and do not understand just what my duties and responsibilities were in my IRS Appeals Associate Chief position - and how this knowledge and experience can assist me with the resolution of their tax controversy.   During my tenure as an Associate Chief of the Los Angeles Appeals Office of the IRS, I was the deciding official responsible for accepting or rejecting proposed settlements of Collection actions, Examination Division audits and Service Center generated issues that were negotiated by my Appeals Officers. 

The IRS Collection cases involved common issues as collection appeals of liens and  levies (CAP) cases, offers in compromise (OIC), collection due process (CDP) cases, trust fund recovery penalties (TFRP), assessed penalties and payment agreements.   Examination cases covered just about every aspect of the Internal Revenue Code, ranging from issues typically found in individual audits (such as unreported income, itemized deductions, activities not engaged in for profit, employee business expenses, etc.) to the heavy corporate issues (excessive compensation, accumulated earnings, abandonment losses, etc.).  

As the Associate Chief, I had to evaluate the evidence as developed by the Revenue Officer or Revenue Agent in support of their position, as well as additional evidence submitted during the Appeals consideration by the taxpayer and/or his representative to rebut the IRS's proposed adjustments.  Upon conclusion of the negotiations, I reviewed the settlement proposal (or recommendation for litigation) prepared by the Appeals or Settlement Officer.  

As part of this review process, I also considered the credibility of all parties who were likely to testify at trial if the case proceeded to litigation.   Following my review, I made the final decision regarding the disposition of the case by the Appeals Division.  This typically resulted in my:

• Acceptance of a proposed settlement,

• Rejection of the taxpayer's settlement offer and forwarding the case to Area Counsel for trial preparation, or

• Return of the case to the Area Office for further development (e.g., review of new evidence or applicability of case law not considered by the Agent).   

Please consider the potential financial impact of trying to handle your own tax controversy case, or selecting an advocate who lacks the experience and qualifications to adequately represent you in a collection action or tax audit.  Tax laws are very complex, and understanding both the tax laws as well as the tax agency's administrative procedures are of crucial importance in negotiating a resolution of your tax controversy.     

Tax controversy resolution is my specialty area of practice, so please do not hesitate to contact me for further information and assistance.  

Consultation

Has the IRS or one of the State taxing agencies sent you a Notice of Adjustment, Notice of Examination,  Notice of Deficiency or any other type of communication?  Do you we back taxes?  Have you not filed returns for past years?   Do you want to know what options you have, and get a recommendation about how to proceed from a tax resolution specialist who is very knowledgeable about and experienced in working with IRS and State processes and procedures? 

I am available for either telephone or in-person consultation.  Your initial telephone consultation for providing general information regarding an IRS or State Notice or Examination Report, or for your potential qualification for an Offer in Compromise, is free for up to 20 minutes.  For example, you just received a notice from the IRS (let's say a CP504 notice).  What does that notice mean?  What notice or action will likely follow?  The free consultation is to give you general information not specific to your tax return. 

For specific advice on your personal tax matter, I do charge for my services.  A specific tax question might be along this line:  I have a business that the IRS says is an activity not engaged in for profit.  How do I overcome that issue?  To answer that question, you will need to provide me with specific information about your business, such as its history of profits or losses, your experience in the particular focus of the business, your success in other ventures, the formality of your record keeping system, and so forth.

For telephone consultation, you may purchase one hour of consultation time - typically sufficient time for providing you with specific advice on how best to proceed in resolving your issue and respond to questions along the way.  In advance of our consultation, I will have you E-mail or fax me specific documents I will review so as to have an accurate assessment of your tax controversy. 

Your telephone consultation fee is payable in advance either by check, credit card or through PayPal.  If you subsequently retain me to represent you for the resolution of the issue, then up to one hour of your consultation fee will be applied toward your retainer (effectively making your first hour's consultation time fee) so long as our representation engagement is finalized within seven (7) days of the date of consultation. 

Office consultation is available if necessary (for example, you have a lot of documents that I need to review) For all office consultation, I charge my normal fee, and payment for one hour's time is required at the beginning of the consultation.  If after our consultation you decide to retain me for representing you, then I will apply your consultation fee (up to one hour) toward your retainer so long as our representation agreement is finalized within seven (7) days of date of consultation.  Again, this like getting a hour's consultation without cost.

Please check out my Consultation page for more details.   

Expert Witness

I have given testimony as a defense IRS expert witness.  If you find yourself in need of an expert witness who has in-depth inside-the-IRS knowledge, please contact me so that we may discuss your needs. 

Technical Topics

Do you want to know more about the rules for deducting a home computer used by an employee in their job?  Are you interested in finding out if you would qualify for an Offer in Compromise?  Do you believe that you may be an "innocent spouse" and therefore, not liable for a portion of a joint deficiency with your ex-spouse?  What are the rules for paying the "nanny tax?" Do you have some other tax question for which you need further information?  

There is a large section of this web site devoted to addressing these and many other recurring tax issues of interest to most individual taxpayers.   In addition to the above items, topics addressed include Collection Due Process procedures, installment agreements, contributions of property (you most likely have heard all of the radio ads advertising large deductions for donating your car that needs repair and cannot be sold ... be careful on this one!!.) - and the list goes on. 

If you are interested in reviewing the index of topics, click here or click the Technical Topics button on the index bar.  There is also a link to the index of technical topics on the Representation web page.   

I welcome your Email (dick@dicknorton.com) or phone call with your questions or comments.    There are  also  links at the top and bottom of this home page to another page where you can ask me a general tax question. 

Please - I encourage you not to make the mistake of representing yourself before the IRS or State Tax Authorities in your tax controversy unless you have a solid knowledge of tax law and understanding of the processes and procedures of Tax Administration.   Believing that you can save money in a IRS tax audit or collection action (or such action by the FTB or other state agency) by not engaging the services of a qualified tax resolution specialist could end up costing you a lot more in the end than the representation fees you saved. 

I want to ensure that all who visit this website understand that the tax laws apply to everyone in this country, as well as to individuals outside of the United States who earn money from investments, property or businesses located in the US (unless specifically exempted by a tax treaty, or specific provisions of the US Internal Revenue Code).   

Filing returns and paying the taxes when due is required by law.  The willful failure to file a return and/or pay your income  or business tax can result in not only civil penalties, but criminal penalties as well - and that can include prison time!  This is serious stuff! 

Please - don't be fooled by individuals who try to convince you that you can beat the system.  Following their advice will most certainly cost you dearly in the end - not only in your pocket book, but possibly your freedom and reputation as well. 

The IRS has put together a document that discusses the most common contentions by tax protesters, and the legal basis proving their contentions false.  I have uploaded this document to this website for your reading.  

If you are contemplating not filing returns or paying the tax based upon something you heard or read that allegedly exempts you from the process - or have not filed before now because of what you heard or read,  I strongly recommend you read the IRS document before you get into a serious situation that can adversely affect you and perhaps your family as well.  Please share this web site information with any family, friends or work acquaintances for whom it will be meaningful.

Here is the link to the IRS document.  

The IRS issued a notice in 2006 providing further information on this topic.  Here is the link to Notice 06-31.

If you have not filed all of your required returns, I recommend you get them prepared and filed ASAP - and hopefully you will do this BEFORE the IRS comes after you.  In my several decades of IRS experience, I never heard or read about a prosecution of a taxpayer who came forward and voluntarily filed delinquent returns (before IRS contact) in their effort to get compliant with the tax laws.  

You need to understand that if you have not filed one or more tax returns, depending upon the circumstances for non-filing, the US Attorney may be able to convince a jury that your failure to file was not due to negligence or oversight, but solely for the purpose of willfully evading the tax laws. 

Even if you are unable to pay the tax liabilities and penalties for delinquent returns, file the returns!!!  I can almost always work out a means to satisfy the liabilities - either by installment agreement or by an Offer in Compromise. 

This is important!  If you are contacted by a Special Agent of the Internal Revenue Service (or otherwise notified of a pending criminal investigation), I recommend that you seek the services of a qualified tax attorney - immediately!   I will be happy to recommend one if you need such a referral. 

The United States Tax Court and other Federal Courts have the power to assess sanctions against a taxpayer - and their representative - who advocate tax protester type arguments.  Here is an excerpt from a 2007  9th Circuit Appeals Court case on this point:

Taxpayers who pursue these meritless arguments not only end up paying the tax in the end, but incur legal fees in the process, AND - as in the case above - significant other costs.

Please - do not risk becoming an IRS prosecution statistic because of delinquent returns!  Contact me and I will work quickly with you to complete your delinquent returns and get them filed.  If you believe you cannot pay all of the tax, penalties and interest you owe, do delay you in filing the returns.  We can explore payment options with the IRS (and FTB for that matter), including an offer in compromise if you qualify. 

DOJ Reports Irwin Schiff Convicted!

The long-time tax protester, Irwin Schiff, who for years advocated that citizens were not required to pay taxes, was sentenced in February 2006 to over 12 years in prison, according to the Department of Justice's press release (read it here).

Several years ago, the IRS and FTB initiated examinations of returns prepared by Western Tax Service.  Most all of these examinations are now completed, or in litigation.  If you wish to know more about this firm and the IRS's investigation, click here.

God bless you, and thank you for visiting dick norton . com

Dick Norton, EA
Tax Resolution Specialist

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