IRS Inconsistent Policy on Taxpayer Interviews
Some IRS Revenue Agents have been requesting interviews with taxpayers even when the taxpayer has authorized representation through a valid Form 2848, Power of Attorney. Tax professionals should monitor and challenge improper interview requests.
By Bill Wilson, CPA-Dallas
Tax practitioners have reported that some IRS Revenue Agents are demanding direct taxpayer interviews even in cases where a taxpayer is represented under a valid Form 2848, Power of Attorney. The scenario commonly arises in audits conducted by newer Revenue Agents.
IRC Section 7521(c) protects a taxpayer’s right not to attend an interview during a civil examination and instead to rely on an authorized representative unless the IRS uses its summons authority to compel the taxpayer’s attendance. The TXCPA Federal Tax Policy Committee has taken note of this trend and is working on a comment letter to alert the IRS to the issue and suggest safeguards and the need for targeted training for Revenue Agents regarding IRC Section 7521(c).
Improper IRS interview demands can place taxpayers – especially small business owners – in a difficult position: either to appear for an interview they may lawfully decline or risk escalating an otherwise routine examination. This trend may chill the exercise of taxpayer rights and increase costs and friction for practitioners seeking to protect their clients.
Professional representation remains a core taxpayer right. Practitioners should remain alert to interview requests from IRS agents that may exceed the IRS’s statutory authority and should document, elevate and address those concerns through appropriate channels.
See: 26 U.S. Code § 7521 - Procedures involving taxpayer interviews | U.S. Code | US Law | LII / Legal Information Institute
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