Quick Hitters For New Tax Practitioners - Confirming Individual Client's Estimated Federal Income Tax Payments

My friend, Billy Barber, CPA wanted to contribute to the blog. Billy is a new CPA and just learning the ropes of tax controversy cases. We're looking at doing a regular post to discuss challenges and tips for new tax practitioners"

My name is Billy Barber.  I am a 2011 alumni of the University of Richmond with a bachelor's in business administration.  I have three years work experience as a book keeper in the private sector for a real estate investment company and more recently close to two years experience as a staff accountant for a public accounting firm based in Virginia.  I was also recently licensed as a CPA in Virginia on September 15, 2015.

This past tax season I met with several individual tax clients who were unable to provide, with 100% accuracy, the date and amount of their 2015 federal estimated income tax payments.  Obviously, this information is critical and needs to be entered correctly on each client's tax return in order to calculate an accurate refund or tax payment due.  

As a new CPA I learned that I was eligible to represent clients before the IRS.  By submitting a power of attorney form 2848 I could quickly and easily gain access to client account transcripts and determine the exact date and amount of any estimated tax payments.  The form can be completed in a matter of minutes following the instructions on the IRS website. 

Once I had a client signed form in hand I would call the IRS practitioner priority line and wait on hold to speak with an agent usually no more than 15-20 minutes.  Then I would ask for the agent's direct fax number and place them on hold to send the fax.  When I returned to the line the agent would confirm receipt of form 2848 and the tax year(s) in question and disclose the client's account transcript information right over the phone.  I was even able to request the account transcripts be faxed to me so documentation could be provided to the client. 

This process was much quicker than the alternative of waiting for CAF to process a submitted Form 2848 and pulling the transcripts via the transcript delivery system (TDS) 5-7 business days later.  It was also a task I could manage on my own without having to rely on others in the office.

It is important to note with tax resolution client's contacting the IRS directly to request tax transcripts may bring unwanted attention to a client versus the "soft" contact achieved by submitting form 2848 to CAF and pulling the transcripts through the TDS.  However, if the client is in good standing and you are looking to simply clarify estimated tax payments the "hard" method of contacting the IRS outlined above is a great way to expedite the process!

-Billy Barber, CPA