Make sure the paid preparer
signs the return and includes their Preparer
Tax Identification Number (PTIN).
At Agostino's prompting, Geiger then began to lay out the civil penalties faced by unethical preparers
However, only 40% of paid tax preparers
are subject to mandatory professional standards, raising concerns about the possibility of errors or fraud in the tax preparation process.
In announcing the launch of the program, called the Annual Filing Season Program, Koskinen said the program "will give unenrolled return preparers
a way to stay to up to date on tax laws and changes, which we believe will improve service to taxpayers.
Based on those eight cases, TIGTA estimated that preparers
in 191 cases closed for fiscal years 2009 through 2011 may have been improperly assessed $454,643 in penalties.
The problem is unscrupulous tax preparers
only care about taking your money.
245) NATP suggests the side effects will be especially onerous in remote or rural locations, which may have only one or a few paid preparers
and concludes that "putting practitioners out of business with high costs does nothing to further the effectiveness of the tax system.
Recommendation: The Commissioner of Internal Revenue should document a strategic framework showing how IRS intends to use the paid preparer
requirements to improve taxpayer compliance and assess their effectiveness.
Assessing penalties against tax preparers
and appraisers is not a new phenomenon.
Require that all paid tax return preparers
register with the IRS and obtain a preparer
tax identification number.
Following a six-month review of the paid tax preparer
industry, the IRS is drawing up regulatory requirements that will have paid preparers
register with the IRS and pay a user fee, and make preparer
tax identification numbers mandatory.
Originally motivated by Congress' belief in widespread abusive practices by income tax preparers
, as well as concerns that significant numbers of fraudulent returns were being prepared by income tax preparers
, the tax preparer
penalties of [section] 6694 were enacted in 1976.
Four groups of professionals who can prepare California returns: attorneys, enrolled agents, certified public accountants and registered tax preparers
2) The ANPR would amend the current Treasury Regulations to subject tax return preparers
) to criminal penalties for knowingly disclosing tax return information to lenders to help taxpayers obtain RALs, even when the taxpayer consents to the disclosure.
Congress saw fit last year to change the rules that relate to potential penalties imposed on preparers
of tax returns.