PRP means – Problem Resolution Program
The IRS Problem Resolution Program
The Internal Revenue Service (IRS) objective is to provide a system that its services are much more customer-service-oriented by reducing taxpayer burdens (to the barest minimum possible) and improving quality and customer satisfaction. To that end, several programs addressing taxpayer problems have been implemented.
PROBLEM RESOLUTION PROGRAM
Ignoring an IRS problem will not make the problem disappear, but rather it will make the problem grow bigger over time, as interest and penalties increase. Most times, the interest and penalties are bigger than the tax debt itself.
The problem resolution program (PRP) was formed in 1977 to help taxpayers when regular contact with the IRS failed to resolve their problems. Although the program has been around for more than two decades, it is only in the last few years with the passage of Taxpayer Bill of Rights 1 and 2 that it has become effective.
Aim; The PRP is not meant to be a substitute for the formal IRS appeals process or to resolve legal or technical tax questions. Rather, the program was designed to achieve these specific goals:
· To ensure the protection of the rights and privileges of the taxpayers
· To guarantee the prompt and immediate resolution of problems through the appropriate channels
· The Identification of the areas that taxpayers experience problems with the service and bring them to IRS management attention
· To serve as an advocate for taxpayers within the IRS, representing their interests and concerns in the services decision-making processes
Furthermore, the mere thought of the IRS may make taxpayers nervous, let alone having to resolve a problem with them. However, the IRS has set out eligibility criteria that a taxpayer should meet to be able to contact the Problem Resolution Program (PRP) for the prompt resolution of their problem:
Second Contact, same Issue: The taxpayer has tried repeatedly and unsuccessfully to contact the IRS to resolve the problem but there was no response. Any Contact indicating the taxpayer has not received a response at least 30 days (60 days if the issue involves filing an original or amended return or claim) after the taxpayer’s initial inquiry or complaint.
No response by date promised: If the IRS fails to respond to the call of the taxpayer by the agreed or promised date. Any contact indicating the taxpayer has not received a response by the date promised (including commitment dates on IRS forms)
System failure or best interests: Any Contact indicating that the established systems or channels that is meant to resolve the problems of the taxpayers fails to resolve the taxpayers problems or when it is in the best in the best interests of the taxpayer or the agency that the case be resolved in the Problem Resolution Program(PRP).
According to the IRS, every taxpayer with any tax problem can expect polite handling of the dispute; follow up within seven days of the initial call. If you call the Problem Resolution Program (PRP), be prepared to provide the following information to the taxpayer advocate:
· Your Social Security or employer identification number
· The tax year(s) and type(s) of return involved
· A detailed description of the dispute
· Information on your previous attempts to resolve the problem
TAXPAYER ASSISTANCE ORDER (TAO);
When a taxpayer is suffering (or is about to suffer) a significant hardship as a result of the manner in which the tax laws are administered, the IRS may issue a taxpayer assistance order (TAO). (This occurs, for example, when a taxpayer needs the refund to relieve a severe hardship, when there are delays in reissuing a refund check the IRS sent to a wrong address or if the service takes an enforcement action but the taxpayer had no notice of a tax deficiency and is not afforded an opportunity to obtain an administrative review of its validity.) TAOs cover a specific time period during which they must be followed. If the IRS issues a TAO, the taxpayer advocate will review the circumstances of the taxpayers case, during which time the IRS will suspend any enforcement action.
Around the country there are Local Taxpayer Advocates (LTAs) in every state. These persons assist when there is a client with a time sensitive hardship.
For business transactions and revenue involving taxes or individual filing, the person should be completely honest. Lying often leads to possible fraud and tax crimes, even if unintentionally. Falsehoods provided to federal investigators are considered perjury. Silence is better than incorrect statements significant hardship because of IRS action, and this does not just include collection action, although that is traditionally a source of hardship, and if the client’s case meets TAS (Taxpayers Advocates Service) case criteria for acceptance, then the LTA can initiate a TAO ordering the appropriate IRS operating Unit to take action or to stop action in order to alleviate the Hardship.
The LTA will only issue the TAO if convinced that the operating division has acted incorrectly based on the code or, more likely, the Internal Revenue Manual. The client has to make sure he provides the TAS caseworker and the LTA with detailed information or research showing that the IRS has acted inappropriately.
PREVENTING AN IRS PROBLEM
It is possible to have a problem-free experience with the IRS. In other to have a hitch-free time, the taxpayer has to do the following;
File Taxes in a Timely Manner;
There are deadlines that have been set by the IRS and to avoid any form of dispute with the Agency, every taxpayer should adhere strictly to these deadlines. The IRS also makes extensions available so as to accommodate the taxpayers, but in order to prevent any problem with the IRS, it is advisable that every taxpayer pay attention to this deadline and file their taxes on time. If payment or filing is not completed when scheduled or as at when agreed, Interest and penalties may be added to the original amounts. Judges are fully mindful of these situations when issuing sentences.
Prompt response to mails and tax announcements;
It is advisable to every taxpayer to ensure that all mail is opened and responded to promptly. The IRS usually makes announcements and it is prudent that every taxpayer adhere to this announcement within the provided deadline. If additional information is required, it should be given. Inquiries may be started when the person does not contact during these time frames or if the request has been ignored.
Consistency is Vital;
It is important that the information provided by any individual to the IRS is consistent without deviation. When any data is changed during an investigation, audit or during times of filing, the IRS sees this individual as a suspect of criminal activity. The IRS also communicates with other areas of local, state and federal government organizations when it notices any foul play or violations of the law from any taxpayer. Therefore, to avoid any dispute with the agency, being consistent in all tax related information provided to the IRS is of utmost importance.