IRS answers: updates shared, questions answered.

• Author: English, Damien B.M.
• Position: FedTax - Interview

Before addressing the CalCPA Committee on Taxation's questions during the annual COT-IRS liaison meeting Nov. 18, IRS representatives discussed Staffing issues in the agency.

Joe Calderaro (Northern California technical advisor; Examination/Technical Services: gave it snapshot of life local experience by saying about 77 percent of IRS agents in Walnut Creek and 60 percent to 70 percent in Oakland are new; He added that the agency is still hiring, and reminded the CPAs that some patience might be in order when dealing-with the new hires.

Calderaro did point out that revenue agents going into Appeals offices usually will have (bur to six years" experience.

Tom Travers: deputy area counsel. Office of Chief Counsel; provided a similar update.

"Our office has hired several new attorneys. We had a great opportunity to bring in new talent--new attorneys just starting out, as well as experienced attorneys, from the Ninth Circuit and from the Judge Advocate General's corps." he said.

The challenge, Travers continued, comes in assigning appropriate training opportunities to these new attorneys, as each comes with a different set of prior experience Q&A The following is a sample of the questions posed by COT members and answered by IRS officials. A draft version of the transcript is available al www.calpa.org/FTBQ&A,

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Q: During a recent audit, the auditor requested that a Form 872 be signed. The CPA was (old that a recent memo was circulated to IRS audit groups instructing the auditors to obtain only the taxpayer's signature on Form 872. The signature of the Power of Attorney was no longer acceptable.

Is this a change to the acts-authorized by a valid Power of Attorney?

--Steven J. Duben

A: The Internal Revenue Code provides that the statutorily prescribed period for assessing lax may be extended if both the secretary and the taxpayer agree to do so in writing. This written agreement is referred to as a "consent." Before the statutory period for assessment expires, both the taxpayer and the IRS must execute the consent form evidencing the agreement to extend the period of time to assess tax.

Internal Revenue Manual 25.6.22.5.7.1(1) states that an individual having a valid Power of Attorney from a taxpayer; which allows that individual (the authorized representative) to extend the statute of limitations, may execute a consent. The Power of Attorney must be valid at the time the consent is executed bv the authorized representative.

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