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Published June 30, 2009 - Montana Standard, Missoulian, Independent Record, Billings Gazette, and Ravalli Republic
CPA wants right to handle certain state tax appeals
by Charles S. Johnson of the Standard State Bureau
HELENA - A Deer Lodge accountant is waging a battle on many fronts to convince state tax agencies to allow accountants, not just lawyers, to represent taxpayers in informal appeals.
James C. Wangerin, a certified public accountant, is petitioning the state Department of Revenue to amend its rules to allow informal proceedings to occur before the agency or any tax appeal board. CPAs should be able to represent taxpayers in these informal proceedings, he said.
Besides firing off e-mails to state tax agencies, Wangerin has contacted lawmakers on an interim legislative committee, called newspapers, and taken to the Internet.
Wangerin wants the Department of Revenue and the State Tax Appeal Board (STAB) to allow CPAs to represent taxpayers at informal mediation proceedings inside or outside the department and to allow submission of the case based on the record, or informal hearings.
Asked why a taxpayer would prefer having an accountant rather than a lawyer to handle an appeal, Wangerin said, "An attorney would cost more money."
Wangerin said he has handled tax appeals and audits for his clients at no extra charge over what he originally billed them for preparing their taxes.
"The Montana Department of Revenue and the Montana STAB have violated my right to know and right to participate when they created guidelines restricting right to representation under the Montana taxpayer bill of rights," he said.
In response, Revenue Department spokeswoman Cynthia Pierson said: "while we are aware of Mr. Wangerin's concerns, the Department of Revenue has not yet received his petition. The department will carefully review Mr. Wangerin's petition once it is formally filed, and will respond as provided by law."
Wangerin said the Revenue Department also denied his request for mediation and submission of cases based on the record, while STAB ignored his request for informal proceedings.
Powell wrote it's clear that a CPA can legally represent a client on a property tax appeal before one of the 56 county tax appeal boards.
When it comes to STAB, however, Powell said the state board becomes the court of record for all tax appeals. The legal record developed there will be used by any appellate court, including a district court, she said.
While an accountant may be fully versed in specifics on tax policy and tax law, Powell said, that person is not trained in procedural issues in litigation. These include making motions and evidentiary challenges and protecting a client fully by preventing the Revenue Department from raising improper issues or materials.
Wangerin said that he doesn't believe that neither he nor any other non-attorney has any interest in representing clients in a formal procedure.
But he said he believes it was the intent of the Legislature, in adopting the Taxpayer Bill of Rights years ago, to allow non-attorneys to represent taxpayers before the department or STAB.
"All I'm asking for is a hearing," he said.
PRESS RELEASES BY JAMES C. WANGERIN, CPA:
No Clear Cut Rule for CPA Representing Taxpayer
CPA petitioning for hearing
July 2, 2009 - Deer Lodge MT
Montana Code Annotated 15-1-222. Taxpayer bill of rights states (2) the taxpayer has the right to hire a representative of the taxpayer's choice to represent the taxpayer's interests before the department or any tax appeal board.
James C. Wangerin, CPA (Wangerin) is fighting for the taxpayer's right to hire representative of choice.
On December 10, 2007, Karen E Powell (Powell), chairwoman of the State Tax Appeal Board, wrote, "Although there is no clear cut rule prohibiting a CPA from representing a client before the State Board in a property tax or an individual income tax appeal, this article presents some specific reasons it may not be allowed by the Board..." On May 8, 2008, Powell wrote, "At the hearing, a party may be represented by an attorney or you may choose instead to be self-represented." Prior to Powell's article, there were many cases where a CPA represented a client before the State Tax Appeal Board.
On June 8, 2009, C A Daw (Daw), chief legal counsel for the Department of Revenue, wrote, "... if you attempt to examine or cross examine witnesses, issue discovery requests, take depositions, or enter legal briefs in the course of taxpayer representation I think you have crossed the line ..." On June 18, 2009 Daw wrote, " ... if you attempt to do the things which amount to the practice of law during your representation, individuals may well report your actions to the appropriate enforcement authorities."
Current administrative rules seem to contradict Daw's writings. Here are a few excerpts:
Notice of the time and place for a hearing shall be given to ...representatives
Any representative other than legal counsel must submit a written, signed statement authorizing the representative to act on the party's behalf.
Every party at a hearing shall have right to introduce evidence.
Any party appearing at a hearing may submit a written statement addressing factual or legal issues, including cites of legal authority ...
A primary objective of the resolution procedure is to make the dispute resolution as unintimidating and inexpensive as possible to parties appearing before the department.
Wangerin is petitioning for clear cut guidelines for CPAs that represent taxpayers. Wangerin says, " the guidelines should go through the administrative rule making process including a public hearing."
You can read Wangerin's formal petition, read news articles from Montana daily newspapers, listen to news on the radio, watch You Tube video, watch Soap Box video, and enter comments in several blog sites by visiting http://montanapetition.com
James C. Wangerin, CPA prepares Montana income tax returns for over a 1000 clients per year.
James C. Wangerin, CPA can be contacted at 301 1/2 Main Street; Deer Lodge, MT 59722 (406) 846-1862 jim@wangerin.com
Petition for Taxpayer Rights
Right to Representation, Right to Mediation, Right to Submit Case Based on Record
June 29, 2009 - Deer Lodge MT
James C. Wangerin, CPA (Wangerin) is petitioning to have the Department of Revenue allow informal proceedings before any tax appeal board. CPAs could represent taxpayers during the informal proceedings.
C. A. Daw, Chief Legal Counsel recently e-mailed Wangerin the Department of Revenue’s position not allowing witnesses, discovery requests, or briefs under threat of prosecuting non-attorneys for unauthorized practice of law. The Department of Revenue has also refused Wangerin’s request for mediation and submission of case based upon the record. The State Tax Appeal Board ignored Wangerin’s request for informal proceedings.
Wangerin petitions for a hearing on changes to administrative law to allow implementation of MCA 15-1-222. Taxpayer bill of rights. (2) the taxpayer has the right to hire a representative of the taxpayer's choice to represent the taxpayer's interests before the department or any tax appeal board.
The petition proposes amending Administrative Rule of Montana (ARM) 1.3.231 GENERAL PROVISIONS, REPRESENTATION by striking (2) A corporation appearing before an agency is considered a separate legal entity and may not appear on its own behalf through an agent other than an attorney. Wangerin wants ARM 1.3.231 to state: (2) Taxpayers (including Corporations) may be represented by non-attorneys at informal proceedings, mediation, and in submission of case upon the record before the Department of Revenue and any tax appeal board (including State Tax Appeal Board).
The petition proposes amending ARM 1.3.216 CONTESTED CASES, APPLICATION FOR MORE DEFINITE AND DETAILED STATEMENT by adding that CPAs or Enrolled Agents may apply for more definite and detailed statement as a response to taxpayer’s statement of facts and taxpayer's statement of position on legal issues. Wangerin also adds that Department of Revenue and State Tax Appeal Board must agree to request for submission of case based on definite and detailed statements.
The petition proposes amending ARM 42.2.618 MEDIATION PROCEDURES by adding (6) If requested by the taxpayer or CPA or enrolled agent representing the taxpayer, the Department of Revenue must agree to participate in mediation.
Wangerin has submitted a formal petition to the Department of Revenue. (See petition, video, and blog at http://montanapetition.com)
June 26, 2009 - Deer Lodge, MT
James C. Wangerin, CPA mailed petiton for a hearing on proposed changes to Administrative Rules of Montana.
The proposed changes require acceptance of taxpayer's request for mediation, require accepatance of taxpayers request for submission of case based on the record, and allow non-attorneys to represent corporations at informal proceedings. James C. Wangerin, CPA said, "Interested parties should contact Dan Bucks, Director of Department of Revenue. A video on the issue and actual perition is available at http://kindergentlerworld.community.officelive.com "
James C. Wangerin, CPA is located in Deer Lodge, MT and prepares Montana income tax returns for over a 1000 clients per year.
James C. Wangerin, CPA can be contacted at 301 1/2 Main Street; Deer Lodge, MT 59722 (406) 846-1862 jim@wangerin.com