Question

Why might it usually be desirable to settle a tax dispute with an agent, rather than appealing to a higher level within the IRS? Also .. why might it sometimes be in your clients best interest to seek resolution at the higher level within the IRS?

Answer 1

The tax dispute could be of benefit to the client if he/she get it settled through an agent rather than appealing at a higher level within the IRS because

1) The agent is a expert tax advocate, knowing the rules and regulations.

2) The agent can bring out certain benefits towards exemptions and reliefs.

3) The agent can follow the past cases to tackle the cases.

4) Most of the IRS official could have came across the agent, so final decision would have some favor.

Sometimes, it could be possible to have favorable resolution to the dispute at the higher level within the IRS rather than going with agent because

a) The higher officials just pay attention to the big provisions and penalties and skip the small penalties.

b) Following the past cases, the IRS officials at higher level could provide rebates and exemptions.

c) Being more knowledgeable and experienced, the top officials can evaluate the tax more accurately than officer at lower level.

d) The top official have many a cases to solve, so to have quick solution to the dispute the client could get settlement discount or rebate.

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