Greg Cook welcomes you to the Cook & Company website!

I'm often asked the question, "How did you end up in the business of arguing with the Internal Revenue Service?".

GJC: My parents are both retired now, but when I was a teenager, my father was a truck driver and mother was a nurse. My father carried the U.S. Mail from Louisville, Kentucky to Montgomery, Alabama five days per week. He worked for an independent contractor (not the federal government or U. S. Postal Service). As a non-employee, his employer did not withhold taxes from his pay. My father was treated as though he were self-employed back then.

A mistake was made with the tax filings. The IRS caught the mistake two years after the return was filed (the IRS is still that far behind in their work today). Because of the time-lapse, the problem was compounded (multiple years). The interest and penalties that were assessed more than doubled the liability. The IRS caused my parents a lot of grief over that honest mistake.

I was determined that something like that would not happen to me or to my parents again and that I would fight to see that such an injustice didn't happen to anyone else I knew. Mr. Harold Farmer, my ninth grade Pre-Algebra teacher taught my class about filing tax returns, and the rest is history.

What do you do after the April 15th tax filing deadline?

GJC: Believe it or not, we prepare tax returns year-round. Many businesses are on a "Fiscal Year" that ends at a time other than December 31. Many individuals file extensions on their personal taxes due to various complications and delays. And there seems to be a steady stream of people who have several back years to file for one reason or another or come to us for representation in an audit of their "self-prepared" returns.

In addition to preparing tax returns though, we prepare financial statements and loan packages, do tax projections and planning, prepare General Contractor License applications and renewals, assist in "Section 1031 Like-Exchanges" of properties, advise new start-up businesses and much more.

"Are you crazy?", That's exactly what all of my friends asked back in 1994 when I sold everything I had accumulated in life, to pay down on the purchase of a tax preparation firm.

GJC: In the years leading up to the Presidential Election at that time, the hottest topic was "Doing Away With Our Tax System". "A Flat Tax", "A National Sales Tax" and many other proposals, mostly led by Republican Party members. My friends all thought I was crazy. What will you do when they do away with all these complicated tax laws?

Our Senator Shelby, from Alabama, actually proposes a law every year, to do away with the tax system we have. Well, that's a question I haven't had to answer yet.

What is an Enrolled Agent (EA)?

GJC: An EA is an individual who has demonstrated technical competence in the field of taxation and can represent taxpayers before all administrative levels of the Internal Revenue Service. The EA license is a federal license issued by the U.S. Treasury Department, unlike CPA and attorney licenses which are governed by the individual states. There are two ways to obtain the license; 1) Take and pass a two day exam, or 2) Separate from service with the IRS after having worked in a capacity/position of administering the tax code for a minimum of five years.

What does the term "Enrolled Agent" mean?

GJC: "Enrolled" means EAs are licensed by the federal government.  "Agent" means EAs are authorized to appear in place of the taxpayer at the Internal Revenue Service.  Only EAs, attorneys and CPAs may represent taxpayers before the IRS.  The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department.

For example: If the Union Army came through your area and took some of your crop to feed the soldiers, or took some of your horses to use in the war effort, an Enrolled Agent could file a claim against the federal government to have them pay for your horses or crops.

Enrolled Agents are still filing claims against the federal government today (mostly through the filing of income tax returns and amended income tax returns).

The above questions are representative of my personal version of "Frequently Asked Questions". I will add more as time permits. My business is all about personal relationships. Our founder, Al LaGrone started the business fifty years ago with a high value placed on personal relationships.

Today I have relationships with clients in all fifty states and several foreign countries. Many of those clients, I only get to see face-to-face, one time each year. The internet is great, in that it allows me to share this information with you so easily.

Greg Cook