CPA Threatened for Filing Complaint with TIGTA

Aug 23, 2008 2 Replies

I ran into this on the ABA-TAX listserv. A NJ CPA filed a lawsuit. I'm not sure who all he is suing. It may be a combination of the IRS,the TIGTA, and a few revenue officers.



He has has some RO's trying to pursuade clients who had not already signed POA's not to sign one and to persuade clients who had already signed POA's to void them. After complaining to the office of the Treasury Inspector General for Tax Administration, he has been threatened with having his license revoke for filing a the complaint!



Interesting every follow-up has been in agreement with his situation. I had a situation that went into Collections in 2000 in spite of my explaining it umpteen times on the phone. Finally I got a call from someone in Collections. When I told her to check my POA, she said we were past representation and she was attempting to collect. Using three-way calling, I got my CPA on the phone and he explained the problem in terms she understood. He had to schedule a meeting to clear it up. And no, I did not owe anything.



So this appears to be a long-term abusive practice. If an attorney did that, they could face disbarment.



I like this guy. He's a "You can't threaten me" kind a guy.



Dick


The scant facts presented, if there are any, would easily fit the scenario of an obstructive rep who is being bypassed by Collection in accordance with established procedures and considered for suspension by TIGTA for violations of conduct rules for reps.

Your obstructive rep theory is probably correct, but the practitioner's assertion that ROs are trying to persuade clients not to deal with him is not consistent with bypass procedures. Field Collection can bypass a POA for cause on a case-by-case basis. Once a bypass determination and notification have been made by management, there is no need to persuade the TP to void the POA. A blanket suspension of the POA for future cases must come from the Director of Practice or the courts. With all of the legal pitfalls faced by ROs since '97, it's hard to imagine any would be foolish enough to attempt to circumvent the readily available bypass process.

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