Most often, people choose a tax professional to prepare their taxes. This is especially true for older adults and those who struggle to manage their financial matters because of poor health.

Working with a tax preparer can help plan your finances, save you money, and make your tax preparation ride smooth and seamless. But sometimes, it can also invite tax controversies, which federally requires you to represent yourself before the Internal Revenue Service (IRS).

Knowing who can represent you before the IRS can be a ballgame.

If you choose to work with a tax professional, the new rules of IRS demand you to know who can represent you should there arise tax issues. Here’s what you need to know:

Understand Your Representation Rights

Representation rights, better known as practice rights, fall into two categories:

● Unlimited Representation

● Limited Representation

Unlimited representation rights enable credentialed tax professionals to represent you before the Internal Revenue System on any tax issue or controversy. Regardless of who prepared your taxes, they can represent you before the IRS and put up a convincing case.

Credentialed tax professionals with unlimited representation rights include:

● Enrolled agents

● Certified Public Accountants

● Attorneys

● Enrolled Retirement Plan Agents

Limited representation rights allow a tax professional to represent you before the IRS if, and only if, they prepared and signed your return. And they can do it only before the IRS revenue agents, customer service representatives, and other IRS employees. They can't represent you if they did not prepare your return. Also, they can't represent you in matters related to appeals or collection even if they prepared the return in question.

Due to the nature of limited representation rights given to tax professionals, taxpayers should choose their tax professionals wisely when preparing their returns.

How Chris Cooper & Company Can Help

Chris Cooper is a CERTIFIED FINANCIAL PLANNER™ licensed with the state of California and is enrolled to practice in audit and administrative proceedings, including representation before the Internal Revenue Service and state and local taxing authorities. As a member of the National Association of Personal Financial Advisors, he knows how to represent clients before the IRS to put up a strong case.

Please contact Chris Cooper & Company to know more about tax preparation and representation.