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Switch to Web Offers Perks and Perils for Tax Controversy Work

Posted on July 8, 2020

Practitioners using virtual tools to interact with the IRS might not mind the much-reduced time spent on travel, but the new normal in tax controversy could have a negative effect on their case outcomes.

Telephone calls and even virtual meetings are no substitute for in-person meetings when it comes to making a case before the IRS, according to a pair of tax controversy attorneys.

During a conversation with an IRS Appeals officer about a case before the pandemic emerged, Andrew R. Roberson of McDermott Will & Emery recalled how he asked the officer whether he preferred face-to-face meetings or telephone conferences.

“The response I got when I asked the question was ‘Well, it’s a lot easier to say no to somebody over the phone than when you’re in person,’” Roberson said during a July 7 Tax Executives Institute webinar. “The takeaway for me: Face-to-face is something that really is important to get things done.”

That’s especially true when dealing with alternative dispute resolutions like fast-track sessions in which “you’re really negotiating with the IRS exams team to get something resolved,” said Roberson, who noted the problem of people talking over each other during a phone call. Face-to-face meetings are far more ideal in those situations, and the same is true when dealing with any large, complex issue, he said, adding that being able to read body language is important.

Armando Gomez of Skadden, Arps, Slate, Meagher & Flom LLP said it remains to be seen whether videoconferences can replace that effect. “I think the jury’s still out,” he said.

In-person meetings have always been more productive than telephone conferences with the IRS, and while videoconferences allow for some virtual interaction, it still may be “easier to say no over the screen than over the table,” according to Gomez.

Gomez said he isn’t looking forward to the prospect of virtual depositions and trials. “That’ll be difficult for everybody,” he said. “It’s just not as easy to really focus in, assess credibility, and get the nuance when you’re looking at a person over a screen than when they’re sitting right in front of you.”

The key to effectively interacting with the IRS and the courts right now is communication, according to Roberson. In the absence of in-person contact, tax advisers need to find ways to develop strong working relationships and establish a rapport with the personnel at the IRS or the courts who they’re interacting with, he said.

Ch-Ch-Changes

Gomez urged practitioners and the IRS to be flexible and willing to adapt to new methods during the pandemic, contending that the gains in efficiency and individuals’ lifestyles could trump the potential for disruptions to routines and long-held practices.

“I’m happy not to be living out of a suitcase all the time,” Gomez said, noting that he was on the road for 38 weeks in 2019. “From a style-of-living standpoint, [telework is] fantastic!”

Through the use of videoconferencing systems, Gomez said, he’s able to more regularly have virtual client meetings than he used to do in person or via telephone. Clients also often seem happy to see another face after months of staying home and self-quarantining, he said, adding, “It’s something that I think is a strange — but welcome — byproduct of what we’ve been living through.”

Follow Jonathan Curry (@jtcurry005) on Twitter for real-time updates.

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