the New Preparer Visit program

[kcjenkins]

Here is a good article about the new Preparer Visits, that I would encourage you all to read.

Link to article

The IRS plans to visit 2,500 tax preparers in 2011 under its Preparer Letters and Visitation Program. The 2,500 tax preparers will be chosen from among 10,000 preparers to whom the IRS sent letters in late November.

“If the Service believes they have the authority to review client files during a compliance check, this request may be unreasonable in light of the size of the preparer’s practice and overly burdensome in terms of the time and effort that the preparer must undertake to prepare for a compliance check,” wrote Thompson. “Further, it will likely create tension between the CPA and his or her taxpayer clients that undercuts the IRS’s policy objectives.”

Furthermore, the AICPA said its members believe that requiring tax preparers to have all their 2009 files available for review is “unduly burdensome” and that if the IRS “insists upon review of the actual client files, these files should be identified and agreed upon prior to the office visit.”

For CPA firms that are completely or partially paperless, the AICPA said it is difficult to make electronic client files available without giving the IRS access to the firm’s computer systems. The AICPA said the IRS visits would be more productive and efficient if the preparer has advance notice of the likely topics of focus so that tax preparers can be ready to answer questions about a specific return.