PTIN Sharing

[Guest Taxed]

Baton Rouge, La.: Two preparers for Quick Tax Services have been arrested and accused of filing false state returns, according to published reports. Shantel Banks, 32, has been charged with theft, filing or maintaining false public records, computer fraud and criminal penalty tax evasion, according to reports.

Also reportedly arrested was preparer Ebony C. Martin, 33, in connection with using fraudulent returns to net $26,399 in state refunds as relayed in our last blotter. Reports cited the pair’s including false business and fake business loan losses for the 2012 filing year, and added that Martin and Banks secured personal information from clients who did not own a business.

Martin did not have a PTIN and filed under Banks’ number, reports added.

I guess IRS does not match PTIN to name of preparer at the time a return is received.

[Jack from Ohio]

Baton Rouge, La.: Two preparers for Quick Tax Services have been arrested and accused of filing false state returns, according to published reports. Shantel Banks, 32, has been charged with theft, filing or maintaining false public records, computer fraud and criminal penalty tax evasion, according to reports.

Also reportedly arrested was preparer Ebony C. Martin, 33, in connection with using fraudulent returns to net $26,399 in state refunds as relayed in our last blotter. Reports cited the pair’s including false business and fake business loan losses for the 2012 filing year, and added that Martin and Banks secured personal information from clients who did not own a business.

Martin did not have a PTIN and filed under Banks’ number, reports added.

I guess IRS does not match PTIN to name of preparer at the time a return is received.

More proof of the total idiocy of the PTIN registration and taxation program.

[ILLMAS]

I can picture Mr. Martin saying, I was doing volunteer work or I do not do substantial amount of returns to require to get a PTIN.

[Guest Taxed]

More proof of the total idiocy of the PTIN registration and taxation program.

Again I would not throw out the baby with the bath water.

But I think it makes sense for IRS to verify the PTIN, EFIN and Name of Preparer against their database at the time a return is filed and if it does NOT match, to reject it. Same way they reject if there is a name and SS# mismatch.

I think that will cut down a lot of this type of fraud. The transmitters are suppose to verify the EFIN/PTIN before they allow you to use their facilities to transmit a return. Both CCH and Drake requires you to fax that page from your IRS account.

[Jack from Ohio]

Again I would not throw out the baby with the bath water.

But I think it makes sense for IRS to verify the PTIN, EFIN and Name of Preparer against their database at the time a return is filed and if it does NOT match, to reject it. Same way they reject if there is a name and SS# mismatch.

I think that will cut down a lot of this type of fraud. The transmitters are suppose to verify the EFIN/PTIN before they allow you to use their facilities to transmit a return. Both CCH and Drake requires you to fax that page from your IRS account.

The PTIN registration and taxation program never had any intention of policing fraudulent activity, or the 20,000+ that did not register their PTINs would not have been allowed to file returns in 2012. It is strictly a revenue grab from us honest preparers.

[mcb39]

The PTIN registration and taxation program never had any intention of policing fraudulent activity, or the 20,000+ that did not register their PTINs would not have been allowed to file returns in 2012. It is strictly a revenue grab from us honest preparers.

Which is all the more reason that tax preparers NEED to be regulated somehow. I took the RTRP and it was not difficult, but the anticipation would still be hanging over my head if I had not done it. Therefore, I have no regrets. Some of the stuff that comes across my desk makes me want to scream and there is no recourse to go after the preparer who created an erroneous return.

[Guest Taxed]

I agree with you. Tax preparers need to be regulated to weed out the incompetent ones.

[Mr. Pencil]

Tax preparers need to be regulated to weed out the incompetent ones.

You're tough! Haven't these paranoid Conservatives taught you anything? First of all, the concept of incompetence only applies to government. For everything else, the free market is plenty good enough. And this registration is just the first step--wait until you are required to buy insurance. PTIN really stands for Phederal Taxation Insurance Nexus

[Guest Taxed]

I am an eternal optimist looking thru rose colored lens

Is there a rose colored lens emoticon?

[Lion EA]

[MsTabbyKats]

I hope this is not off topic...but at least related:

I always assumed the IRS matched my PTIN with my SS#......and figured if I do 300 returns....then I must make $something.

So, in other words.....if a (unscrupulous) preparer files 1000 returns........gets paid $XXXXX.....and doesn't bother reporting it on a Schedule C....the IRS doesn't track this and preparer gets away without reporting income? Basically....it is "off the books income" that goes unreported (assuming clients don't issue 1099-Misc)?

Being honest and dumb....I never even thought about that.

[Guest Taxed]

Your schedule C is just like any other taxpayer's Sch C. If the scoring flags it for review and they see that the source of income is Taxpreparation from your business code, they may start matching PTIN# to total returns filed to get an idea of how many returns you did.But you could charge $100 for a return or $500 for the same return like a CPA.

[MsTabbyKats]

Your schedule C is just like any other taxpayer's Sch C. If the scoring flags it for review and they see that the source of income is Taxpreparation from your business code, they may start matching PTIN# to total returns filed to get an idea of how many returns you did.But you could charge $100 for a return or $500 for the same return like a CPA.

This I know.......

But I assumed it was already tracked:

Like....IRS says 1000 returns were filed by PTIN#????

That PTIN goes with SS#????

So....that preparer has tax return prep income

Not that they know how much....

But if it isn't even tracked...then Mr Unscrupulous Preparer doesn't even have to report his income....since the IRS doesn't bother matching

I'm really just commenting that in the computerized day and age....it's amazing

[mcb39]

It is amazing all right. But, I keep two running logs; as they come in and as they go out and the amount of the fee. My income is posted directly from that log. I always sort of assumed that if the return is e-filed, they can see how much you charged if they want to. Doesn't matter to me. I report all income and always have. The more I report, the larger raise I get every year in SS because I never paid into SS all of the years that my children were growing up. Someday I might actually retire, but at the moment I doubt it.

[Guest Taxed]

>> I always sort of assumed that if the return is e-filed, they can see how much you charged if they want to.

I am thinking out loud, how could they see that for standard deduction returns? Even on Sch A if that line does not change the calculation at the bottom of the form most preparers don't even list it.

I can see if you used a bank product then your fees are coded in the e-file that is transmitted.

[Gail in Virginia]

I don't see how they could try to match PTIN's to schedule C income. The returns I prepare using my PTIN are all income to the corporation. I don't have a schedule C, just a W-2 and a K-1.

[MsTabbyKats]

I don't see how they could try to match PTIN's to schedule C income. The returns I prepare using my PTIN are all income to the corporation. I don't have a schedule C, just a W-2 and a K-1.

Well....they should be able to match the PTIN to the SS#.

With the PTIN they should be able to see if someone is preparing tax returns.

If someone is preparing tax returns there should be income...if not W-2...or K-1...then a Schedule C.

My point is...somewhere there should be income reported.

I'm just shocked that someone could prepare countless returns....and probably file a tax return with "very little" income.

Just another way of letting "the unscrupulous" further denigrate the system.

[Guest Taxed]

One year I lost a client because I would NOT do his new girl friend's tax return as a self employed house cleaner making $15k a year.

Obviously she was trying to claim the max EITC and she had manicured nails. Based on her looks and figure I think she was in another profession.