AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 3/19/2008 Subject: Engagement Letters for Tax preparers
Question For the first time ever, we had an engagement letter added to our prepared taxes. This seemed like something that should be done before taxes are done. When we asked about this, the CPA said that "Like HIPAA laws this is a new requirement and of we do not sign it they could not do our taxes next year. Is this true?
Answer No it is not true. It is a good idea for the preparer to get one because it protects them. It really provides no benefit to you in most cases. It should have been done before hand. They can choose not to do your taxes if you do not sign one - but it is not law - it is firm policy. Many firms are now requesting these be signed because of the changes to preparer penalties by the IRS which tends to make them more liable for the contents of the tax return.
