State Offers Advice on Working with Problems Resolution Officers

By James A. Woehlke, CPA

New York State Department of Taxation and Finance Problems Resolution Officer for Manhattan Diane Farrell recently offered advice to CPAs on how to best work with her and her colleagues.

At the October 29 meeting of the NYSSCPA New York State, Municipal, and Local Taxation Committee, Farrell discussed her role as a taxpayer advocate and offered contact information for problems resolution officers around the state. (See accompanying box.)

"There are no defined guidelines for problems resolution officers as there are for IRS taxpayer advocates," Farrell said.

She recommended that CPAs should make at least two attempts to resolve problems using ordinary channels, for example, calling the assigned revenue agents or their supervisors. If these attempts do not yield the desired results, she encouraged practitioners to contact her.

Farrell mentioned the special toll free number for practitioners to contact the department, but she stressed that they must have a power of attorney on file with the department to communicate over the practitioner hotline. The department accepts powers of attorney via fax.

"Requiring a power of attorney makes it unnecessarily difficult when the practitioner only needs to communicate information to the department," committee member Mark Levin said.

Farrell responded that many calls which begin as a simple proffer of information by the taxpayer's representative often lead to situations requiring two-way communication. The department needs a power of attorney to assure taxpayer information is properly safeguarded.

Farrell also discussed her role in the department's outreach program. She is the point person for relations with practitioner groups such as the NYSSCPA; the IRS; tax administrators from other countries; and the Volunteer Income Tax Assistance (VITA) program, an IRS and volunteer initiative that offers free tax preparation to elderly, disabled, and low income individuals and other taxpayers
with special needs.

The New York State, Municipal, and Local Taxation Committee, chaired by Barry Horowitz, maintains strong relationships with New York City and state tax officials. The committee plans to pursue the inclusion of a tax information release on New York state tax forms, similar to that found on many other states' forms. This release would enable state employees and practitioners to communicate about taxpayer information without an actual power of attorney. *

New York State Department of Taxation and Finance Contact Information

Practitioner Hotline (888) 238-0955