Accountants: Practice Alert-Dealing With IRS-Criminal Investigation Division

By admin of MillarLaw A Professional Corporation On Sunday, July 29, 2018

The following is abstracted from an article appearing in the July, 2018 edition of the Journal of taxation (WG&L). It is well written and covers the major points of concern and practice recommendations for an accountant or enrolled agent approached by an agent of the Criminal Investigation Division of the IRS and/or when facing an interview request by a revenue agent.

Dealing with the Criminal Investigation Division of the IRS, 129 Journal of Taxation 32, Jul 2018
Journal of Taxation (WG&L)
“Accountants are faced with many tax issues about which they must advise their clients. Those issues, in most cases, center around questions of the tax law, items of revenue recognition, deductibility of items, and tax minimization. Accountants also routinely represent their clients before the IRS in tax audits and handle correspondence from the IRS on filed returns. There are instances, however, when clients are faced with significantly more serious issues related to their tax returns. In these instances, it is generally advised that the accountant proceed carefully so as not to compromise the client’s or their own interests. It is also recommended that the accountant both advise their client to seek legal counsel and seek legal counsel for themselves. In addition, the accountant should notify their malpractice carrier by filing a notice of potential claim, otherwise there is a risk that claims resulting may not be covered. The accountant should also minimize their discussions with the Criminal Investigation (CI) division agents until they can seek the advice of counsel. This article describes what the CI division of the IRS is, what powers it has, and what accountants should know when a client has been approached as either a target or subject of an investigation.”

Link to read the entire article: (must be RIA Checkpoint subscriber)