Problem Resolution Program (PRP)

Problem Resolution Program IRS Taxpayer Advocacy Tax Resolution Ombudsman Taxpayer Rights Government Programs Tax Mediation
The Problem Resolution Program (PRP) is an avenue provided by the IRS for aggrieved taxpayers who have difficulty getting their voices heard, providing them with assistance and advocacy.
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Definition

The Problem Resolution Program (PRP) is a service established by the Internal Revenue Service (IRS) to address the concerns of taxpayers who experience challenges with the processing of their tax issues or feel that their situation requires special attention. This program aims to ensure that taxpayers receive fair treatment and that potential issues are resolved effectively and promptly.

Examples

  1. Delayed Tax Refund: If a taxpayer has not received their tax refund within the expected timeframe and repeated attempts to get assistance from regular IRS channels have failed, they can escalate the issue through the PRP.
  2. Incorrect Tax Assessment: A taxpayer who believes the IRS has incorrectly assessed their tax return and has not been able to resolve the issue through standard IRS procedures might use the PRP for rectification.
  3. Ongoing Audits: A taxpayer facing an audit that is prolonged or mishandled, perhaps due to missing documents that have already been submitted, can use the PRP to get help.

Frequently Asked Questions

What is the purpose of the Problem Resolution Program?

The PRP is designed to help taxpayers who have not been able to resolve their tax issues through normal IRS channels. It’s an advocacy program to ensure fair treatment and timely resolution.

Who can use the Problem Resolution Program?

Any taxpayer who has encountered significant delays or difficulties in resolving their tax issues can use the PRP. This includes individuals, businesses, and tax professionals representing clients.

How do I apply for the Problem Resolution Program?

You can apply for assistance by contacting the Taxpayer Advocate Service (TAS), an independent organization within the IRS, which acts as the ombudsman for the PRP.

Does using the PRP have a cost?

No, the Problem Resolution Program services are provided at no additional cost to taxpayers.

How long does it take for the PRP to resolve issues?

The timeframe for issue resolution can vary depending on the complexity of the problem, but the IRS aims to resolve cases as quickly as possible under this program.

  • Taxpayer Advocate Service (TAS): An independent organization within the IRS that assists taxpayers in resolving problems through the Problem Resolution Program and other advocacy services.
  • Ombudsman: A representative who acts as an intermediary between the taxpayer and the IRS, especially within the context of the PRP, to ensure fair treatment and problem resolution.
  • Tax Mediation: A form of dispute resolution where an independent mediator helps taxpayers and the IRS reach an agreement on a tax-related issue.

Online References

Suggested Books for Further Studies

  1. IRS Taxpayer Advocate Service: Your Voice At the IRS by Nina E. Olson.
  2. Taxpayer Advocate Service: A Practitioner’s Guide by James P. Holder.
  3. Dealing with the IRS: Resolving Tax Disputes - Strategies for Success by Peter C. Riley.

Fundamentals of Problem Resolution Program (PRP): Taxation and Resolution Basics Quiz

### What is the primary purpose of the Problem Resolution Program? - [ ] To conduct audits on taxpayers. - [ ] To collect additional taxes from taxpayers. - [x] To provide help and advocacy to taxpayers who can't resolve issues through normal IRS channels. - [ ] To prepare tax returns for taxpayers. > **Explanation:** The primary purpose of the PRP is to assist taxpayers who have difficulty resolving issues with the IRS through standard channels. It provides a means of advocacy and expedited resolution. ### In what circumstances might a taxpayer use the PRP? - [ ] When they disagree with their tax preparer. - [ ] When filing a new tax return. - [x] When facing undue delays or unresolved issues with the IRS. - [ ] When applying for a loan. > **Explanation:** Taxpayers can use the PRP when they face undue delays or when issues remain unresolved through normal IRS procedures. ### Which organization within the IRS operates the Problem Resolution Program? - [x] Taxpayer Advocate Service (TAS) - [ ] The Enforcement and Collections Division - [ ] The Audit Department - [ ] The IRS Commissioner’s Office > **Explanation:** The Taxpayer Advocate Service (TAS) operates the Problem Resolution Program and acts as an independent intermediary for taxpayers experiencing problems with the IRS. ### Is there a cost to use the PRP? - [ ] Yes, there is a fixed fee. - [ ] Yes, it depends on the issue being resolved. - [x] No, the service is free for taxpayers. - [ ] Only if they owe back taxes. > **Explanation:** The Problem Resolution Program services are offered at no cost to taxpayers. ### How can a taxpayer apply for assistance through the PRP? - [ ] By hiring a private auditor. - [ ] By calling the IRS collections office. - [x] By contacting the Taxpayer Advocate Service (TAS). - [ ] By sending a direct email to the IRS Commissioner. > **Explanation:** Taxpayers needing assistance through the PRP can contact the Taxpayer Advocate Service (TAS) for help. ### What type of taxpayer issues can be resolved through the PRP? - [ ] Only criminal tax investigations - [ ] Basic income tax filings - [x] Prolonged audits and incorrect assessments - [ ] State tax issues > **Explanation:** The PRP assists taxpayers with issues such as prolonged audits and incorrect tax assessments, facilitating resolution outside of standard procedures. ### What is an ombudsman in the context of the PRP? - [ ] A legal advisor - [ ] A tax collector - [x] A representative who acts as an intermediary between the taxpayer and IRS - [ ] A tax preparer > **Explanation:** An ombudsman is a representative who acts as an intermediary between the taxpayer and the IRS, ensuring fair treatment and resolution of issues. ### Does the PRP handle issues related to state taxes? - [x] No, it only deals with federal tax issues handled by the IRS. - [ ] Yes, but only for select states. - [ ] Yes, for all state tax issues. - [ ] Only if there is a federal interest. > **Explanation:** The PRP deals only with federal tax issues managed by the IRS, not state tax matters. ### Who benefits from the Problem Resolution Program? - [ ] Investors looking for tax incentives. - [ ] IRS employees. - [x] Taxpayers facing unresolved issues or needing special attention. - [ ] Tax preparers seeking professional development. > **Explanation:** The Problem Resolution Program primarily benefits taxpayers facing unresolved issues or those requiring special attention from the IRS. ### What kind of mediation does the PRP provide? - [ ] Legal mediation for tax evasion cases. - [ ] Financial planning services. - [x] An intermediary to help resolve disputes between the IRS and taxpayers. - [ ] Debt consolidation services. > **Explanation:** The PRP provides an intermediary to help resolve disputes between the IRS and taxpayers, ensuring issues are fairly and promptly addressed.

Thank you for exploring the Problem Resolution Program! Understanding the resources available to resolve tax disputes with the IRS can greatly benefit your financial management and taxation practices.

Wednesday, August 7, 2024
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