Home » Tax Services » IRS Crackdown
audits, tax return , tax preparer, tax return preparers , cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

IRS Crackdown

IRS Crackdown

IRS Crackdown Continues to Increase Oversight of Tax Return Preparers to Improve Compliance, Taxpayer Service, Tax Prevention Fraud Oversight

IRS Crackdown Continues to Increase Oversight of Tax Return Preparers to Improve Compliance, Taxpayer Service

As the April 15 tax deadline approaches, the Internal Revenue Service today announced initial results from its stepped-up effort involving enforcement and education to combat unscrupulous tax return preparers and protect the nation’s taxpayers.
The IRS said it has conducted more than 5,000 field visits to tax return preparers this fiscal year. In addition, the IRS has worked with the Department of Justice to pursue questionable return preparers, an effort that has led to 56 indictments, 25 convictions, and 21 civil injunctions since Jan. 1, 2010.
“We are working to help ensure taxpayers receive competent and ethical service from qualified tax professionals,” said IRS Commissioner Doug Shulman. “Our efforts this tax season are part of a longer-term effort to improve the oversight of this critical part of the tax system. The vast majority of tax return preparers provide solid service, but we need to do more to protect taxpayers.”
Shulman announced in January the results of a six-month study of the tax return preparer industry, which proposed new registration, testing, and continuing education of tax return preparers. With more than 80 percent of American households using a tax preparer or tax software to help them prepare and file their taxes, higher standards for the tax return preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term. While this longer-term effort is underway, the IRS Crackdown has taken several immediate steps this filing season to assist taxpayers.
Enforcement Efforts
The IRS has worked closely with the Justice Department this tax season to increase legal actions against unscrupulous tax return preparers, obtaining 21 civil injunctions, 56 indictments, and 25 convictions of return preparers so far in 2010. More information is available at the IRS Crackdown Civil and Criminal Actions page on IRS.gov. and at the Department of Justice Tax Division page on DOJ.gov.
“The IRS appreciates the strong support of the Justice Department for its efforts to pursue and shut down bad actors in the tax return industry,” Shulman said. “This effort makes a real difference for the nation’s taxpayers and helps protect the many tax professionals who play by the rules.”
“While the majority of accountants provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and the tax-paying public. Those actions are illegal and can result in substantial civil penalties as well as criminal prosecution, for both the return preparers and their customers who knew or should have known better. Taxpayers should choose carefully when hiring a tax preparer,” said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division, IRS Crackdown
Also during this filing season, the IRS used investigative tools on a broad basis, including agents posing as taxpayers, to seek out and stop unscrupulous preparers from filing inaccurate returns. To date, the IRS conducted 230 undercover visits to tax return preparers. In addition, dozens of search warrants have been completed.
The IRS will continue to work closely with the Department of Justice to pursue civil and criminal action as appropriate.
Education Efforts
In January, the IRS sent more than 10,000 letters to tax return preparers. These letters reminded them of their obligation to prepare accurate returns for their clients, reviewed common errors, and outlined the consequences of filing incorrect returns. The letters went to preparers with large volumes of specific tax returns where the IRS Crackdown typically sees frequent errors, although simply receiving a letter was not an indication the preparer had problems.
The IRS followed up with field visits to about 2,400 tax return preparers who received these letters to discuss many of the issues mentioned in the letter. Separately, the IRS conducted other compliance and educational visits with return preparers on a variety of other issues. All told, IRS Crackdown representatives visited more than 5,000 paid preparers to encourage and help them avoid filing incorrect or fraudulent returns for their clients.
The IRS will be reviewing the results of these letters and visits to determine steps for future filing seasons.
Future Efforts
The IRS has recently begun to implement a number of steps to increase oversight of federal tax return preparers. This includes proposed regulations that would require paid tax return preparers to obtain and use a preparer tax identification number (PTIN). Later this year, the IRS will propose additional regulations requiring competency tests and continuing professional education for paid tax return preparers who are not attorneys, certified public accountants, and enrolled agents.
Setting higher standards for the tax preparer community will significantly enhance protections and services for taxpayers, increase confidence in the tax system, and result in greater compliance with tax laws over the long term. Other measures the IRS Crackdownanticipates taking are highlighted in Publication 4832, Return Preparer Review, issued earlier this year.
Help for Taxpayers before April 15
As the tax deadline approaches, the IRS reminds taxpayers that most tax return preparers are professional, honest and provide excellent service to their clients. But a few simple steps can help people choose a good tax return preparer and avoid fraud:

  • Be wary of tax preparers who claim they can obtain larger refunds than others.
  • Avoid tax preparers who base their fees on a percentage of the refund.
  • Use a reputable tax professional who signs the tax return and provides a copy. Consider whether the individual or firm will be around months or years after the return has been filed to answer questions about the preparation of the tax return.
  • Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection, and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
  • Find out if the return preparer is affiliated with a professional organization that provides its members with continuing education and other resources and holds them to a code of ethics.

IRS Crackdown

IRS Continues to Increase Oversight of Tax Return Preparers to Improve Compliance, Taxpayer Service
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
accounting firms, accounting firms in miami , accounting services, consulting services, tax services, accounting, accountants miami, dentist accounting services, dentist accounting firm, dentist accounting consulting services, dentist accounting and tax services, dentist accounting, dentist accountants miami, dentist accountants, physician accounting services, physician accounting firm, physician accounting consulting services, physician accounting and tax services, physician accounting, physician accountants miami, physician accountants, cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

Physician Accountants

Physician Accountants are Niche Boutique Accountants that serve an integral part of the community, physicians, and dentists with complicated accounting

Read More »
taxes, accountant miami, tax accountant, tax accountant miami, cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

Tax Accountant Miami

Tax Accountant Miami Assists Corporate and Individual Taxpayers, but before you spend your hard-earned cash find the right professional for your situation

Read More »
working from home, the future of accounting, bookkeeping , accounting, cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

The Future of Accounting

The Future of Accounting is Working Remotely from Home and the idea of going into the office was made a part of workplace culture by the baby boomers

Read More »
Contador en Miami,accounting tax firms, accounting software, accounting services near me, accounting services miami fl, accounting services miami, accounting services in the cloud, accounting services in miami firm, accounting services in miami cpa, accounting services in miami, accounting services for small business, accounting services firm, accounting services, accounting service, accounting professional, accounting office near me, accounting office, accounting miami fl, accounting miami firms, accounting miami firm, accounting miami cpa, accounting miami accounting service, accounting miami, accounting methods, accounting in miami firms, accounting in miami firm, accounting in miami cpa firms, accounting in miami cpa, accounting in miami, accounting fraud, accounting for small businesses, accounting for small business, accounting firms near me, accounting firms in miami, accounting firms, accounting firm in miami, accounting firm, accounting fees, accounting businesses near me, accounting best practices, accounting applications, accounting and tax services, accounting and tax, accounting and bookkeeping, financial statements, accounting, miami accounting, accounting services, miami accounting services, cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

Miami Accounting Services

Miami Accounting Services Perfecting of Financial Services preparations of tax returns, track expenses and revenues, producing financial statements.

Read More »
llc, form 1065, schedule c , financial record keeping, bookkeeping, tax return preparation miami , deduction, deductible, tax advisor , what can i deduct, cpa, certified public accountants, certified public accountant, accountancy service, ahca, contador, ahca consulting, tax , accounting, accountants, accountant, accountants in miami

What Can I Deduct

What can I Deduct on my Business Tax Return to Reduce Taxes? To be deductible, a business expense must be both ordinary and necessary

Read More »

Share Page

Close
Scroll to Top