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IRS Representation Basics

So, you’ve been researching how to hire a tax advisor or a compensation and benefits consultant. But you haven’t found any articles that explain the different kinds of representation. This…


April 20, 2022

Written by John Wonneberger

So, you’ve been researching how to hire a tax advisor or a compensation and benefits consultant. But you haven’t found any articles that explain the different kinds of representation.

This blog post will explain everything you need to know about each! We’ll cover what these services are, who is eligible for them, and what they cover. Keep reading for more information on how to get the most out of your representation, compensation, and benefits consulting services.

What’s the IRS? 

The IRS is short for the Internal Revenue Service. They are a branch of the United States government that is responsible for collecting taxes. This can include income taxes, estate taxes, and other various taxes. They also offer help to taxpayers who need it, including providing tax forms and assistance in filing taxes. The IRS is an important part of the U.S. government and helps to fund many important programs and services.

What’s IRS Representation?

The IRS representation is the process of having someone represent you during an audit with the Internal Revenue Service. This can be done by an accountant, attorney, or another tax professional. This representation aims to have the auditor understand your financial situation and determine if you owe any taxes.

If you owe taxes, the representative will work to get the best possible outcome. This may include reducing the amount of taxes you owe or getting penalties and interest waived. If you don’t owe any taxes, the representative will make sure that is communicated to the auditor.

What Does IRS Representation Include?

IRS representation includes many different aspects of tax law. An experienced tax advisor can help you understand the tax laws and how they apply to your specific situation. They can also help you negotiate with the IRS on payment plans or other arrangements.

There are many different aspects of IRS representation. The most common include:

  • Filing your taxes: It’s something that everyone has to do, but not everyone knows how. That’s where IRS, state & local representation, compensation & benefits consulting comes in.
  • Appealing a tax audit: If you think the IRS has made a mistake on your taxes, you can file an appeal. The first step is to contact your local IRS office and ask for a face-to-face meeting. If you’re not satisfied with their response, you can request a hearing in front of the Tax Court.
  • Dealing with IRS collections: If you owe the IRS money, they may try to collect it from you through wage garnishment, bank levies, or property liens. If you’re struggling to pay your taxes, options are available to help you. You can set up a payment plan, offer in compromise, or request hardship status.
  • Resolving payroll tax issues: You’re responsible for withholdings and paying payroll taxes if you have employees. The IRS can assess penalties and interest if you don’t pay them. They may also file a notice of federal tax lien or levy your property.

If you are facing an IRS audit, it is important to seek representation from qualified Tax Services. This will help ensure that you get the best possible outcome and avoid any penalties or fines.

Who is Eligible for IRS Representation?

Anyone who is facing problems with the IRS can seek out representation. This includes both individuals and businesses. If you are unsure if you need representation, you can always speak to a tax attorney or accountant to get their opinion.

Individual IRS Representation: 

If you decide that you need representation, there are a few different ways to do it. You can hire an individual IRS representative or choose a tax attorney.

  • An individual IRS representative is someone who specializes in representing taxpayers before the IRS. They will have experience dealing with audits, appeals, and collections.
  • A tax attorney is a lawyer who specializes in tax law. They can provide representation in court if necessary and can also help with complex tax issues.

Business IRS Representation: 

If you own a business, there are a few different ways to go about representation as well. You can hire an accountant or tax attorney or use a business IRS representative.

  • A business IRS representative is someone who specializes in representing businesses before the IRS. They will have experience dealing with audits, appeals, and collections.
  • An accountant or tax attorney can also help with representation. Still, they may not have the same specialized knowledge as a business IRS representative.

What Does State & Local Representation Include?

State and local representation include anything related to state and local taxes. This can include filing your taxes, appealing a tax audit, or dealing with collections. Each state has its own rules and regulations.

State and local representation are similar to IRS representation, but it deals with state and local tax authorities. An accountant, attorney, or another tax professional can also do this process. 

What Does Compensation and Benefits Consulting Do?

Compensation and benefits consulting helps businesses design and implement compensation and benefits programs that attract and retain employees. This can include developing salary structures, designing retirement plans, and more. If you are looking to improve your company’s employee retention rate, you need this type of service.

Types of Benefits

There are many different types of benefits that businesses can offer their employees, and it can be hard to keep track of all of them. That’s where benefits consulting comes in. Benefits consultants help businesses design and implement employee benefits packages that are compliant with the law and meet the needs of their employees.

There are many different types of compensation & benefits programs available to employers. The most common are:

  • Salary negotiation
  • Bonus negotiation
  • Vacation time negotiation
  • Sick day negotiation

Benefits packages can also include:

  • Health insurance
  • Life insurance
  • Disability insurance
  • Retirement plans
  • Profit-sharing
  • Employee stock ownership plans (ESOPs)

Compensation & benefits consulting can be a complex process. It is important to understand the different types of compensation & benefits programs available and how they work. An experienced consultant can help you negotiate the best possible package for your Business Taxes needs.

Tax Representation and Tax Preparation

When it comes to dealing with the IRS, there are two main choices you have to make: tax preparation and tax representation. Tax preparation simply means getting your taxes done and filed correctly. This can be done by yourself or through the use of a professional tax preparer. 

On the other hand, tax representation is when you hire someone to represent you in dealings with the IRS. This could be because you are being audited, or because you owe back taxes and are trying to negotiate a payment plan.

Pros and Cons

There are pros and cons to both tax preparation and tax representation. Tax preparation is generally less expensive, but it also means that you are on your own when dealing with the IRS. If you make a mistake, it is up to you to fix it. With tax representation, you have someone who knows the ins and outs of dealing with the IRS and can help resolve any issues that come up. The downside is that tax representation can be more expensive.

Pros of Tax Representation

As previously mentioned, some pros come with choosing tax representation. Those pros include:

  • You will have someone who is knowledgeable about the tax code to help you.
  • If you are being audited, having representation can help reduce the amount of time and money you spend on the audit.
  • If you owe back taxes, a representative can help negotiate a payment plan that works for both you and the IRS.

Cons of Tax Representation:

There are also some cons associated with choosing tax representation which include:

  • It can be expensive to hire a representative.
  • You may not need representation if your tax situation is simple.
  • A representative cannot guarantee that the IRS will agree to a payment plan or reduce the amount owed.

Pros of Tax Preparation:

Now that we’ve looked at the pros and cons of tax representation let’s look at the pros of tax preparation. They include:

  • It is generally less expensive to prepare your taxes than to hire a representative.
  • You have control over your own taxes and can ensure that they are done correctly.
  • If you have a simple tax situation, you may not need representation.

Cons of Tax Preparation:

  • There are also some cons associated with choosing to prepare your taxes which include:
  • You are responsible for ensuring that your taxes are filed correctly.
  • If you make a mistake, it is up to you to fix it.

Now that you know the difference between tax preparation and tax representation and the pros and cons of each, you can make an informed decision about what is best for your individual tax situation.

Get The Tax Representation You Deserve

It’s important to get the representation you deserve when it comes to consulting and reporting. That’s why Nesso Tax is here to help you. We pride ourselves on working hard to provide top-notch service to each and every one of our clients. 

At Nesso Group, we offer a wide range of tax representation services, from tax consulting to tax reporting. We’ll work with you to figure out the best course of action for your specific situation. We’ll make sure that you comply with all applicable laws. We understand that the tax process can be confusing and intimidating, so we’re here to help you.


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