This is what we gotta watch...

[Elrod]

Media Relations Office Washington, D.C. Media Contact: 202.622.4000

www.IRS.gov/newsroom Public Contact: 800.829.1040

IRS Continues to Increase Oversight of Tax Return Preparers to Improve

Compliance, Taxpayer Service

IR-2010-44, April 7, 2010

WASHINGTON — 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 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 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 return preparers 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.

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 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 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 anticipates

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.

More information is available on IRS.gov, including IRS Fact Sheet 2010-03, How to Choose a

Tax Preparer and Avoid Tax Fraud.

—30—

http://www.irs.gov/pub/irs-news/ir-10-044.pdf

[jainen]

>>This is what we gotta watch...<<

Why bother? I figure they'll let me know.

[Elrod]

Why bother doing any tax research..............?

Why bother going to seminars.............?

Why bother being in this business........?

I've been doing this for 31 years........They, (IRS) don't inform me of squat..

The posting was free......Good Luck..........