As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Articles in category 'Regulation of Tax Preparers'
Shocker: Tax Preparation Outfit Named “Mo’ Money Taxes” isn’t Legit
James Maule tells the story of a tax preparation company called Mo’ Money Taxes: One of my readers alerted me to a story of which I had been unaware. It involves a tax return preparation enterprise that has created nightmares for its clients. The story involves a business called Mo’ Money Taxes, which is based…
Read Full Article Categorized in: News, Regulation of Tax Preparers, Tax Crimes, Tax TipsTax Preparer Goes to Jail
WebCPA reports that a New Jersey tax preparer was sentenced Wednesday to six months in prison for preparing false tax returns for numerous clients that resulted in an estimated tax loss to the federal government of between $30,000 and $80,000. Newark-based tax preparer Carlo St. Jean, 40, pleaded guilty midway through the trial to seven of…
Read Full Article Categorized in: Regulation of Tax Preparers, Tax CrimesIRS Testing of Preparers to Begin
The Internal Revenue Service is moving into the second phase of its tax preparer regulation initiative by beginning next week to schedule the first competency tests for tax preparers. I used to be in favor of regulation of unenrolled tax preparers because anyone regardless of their education level, criminal background and skill level could hold themselves out…
Read Full Article Categorized in: Regulation of Tax PreparersIRS Commish Wants Simpler Tax Code
IRS Commissioner Doug Shulman has come out for tax simplification: Most taxpayers want simplicity. They want to pay what they owe, understand what tax benefits they are entitled to, and not get tripped up by the system. However, today’s Tax Code is anything but simple. It is so complex that it makes it hard for…
Read Full Article Categorized in: IRS Penalties, IRS Procedure, News, Regulation of Tax PreparersIRS Continues to Battle Tax Refund Fraud
WebCPA reports that the IRS increased the number of fraudulent tax refund claims it detected and stopped during the 2011 tax-filing season by 171 percent over the previous year: As of April 30, 2011, the IRS had identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds and prevented the issuance of $4.4 billion,…
Read Full Article Categorized in: IRS Audits, IRS Procedure, Regulation of Tax Preparers, Tax CrimesAICPA Opposes IRS Fees, Fingerprinting of Tax Preparers
WebCPA reports that the American Institute of CPAs (AICPA) is asking the Internal Revenue Service to reconsider some of the fees it plans to charge for competency exams and fingerprinting as part of its tax preparer oversight program. The new fees would apply to individuals who are required to take the IRS competency examination in…
Read Full Article Categorized in: Announcements, IRS Procedure, News, Regulation of Tax PreparersConscripting Tax Preparers Part 2: EITC Due Diligence Requirements
Last year I wrote a post titled IRS Disbars CPA for Relying on Client’s Income and Expense Numbers about a disturbing trend by the IRS to draft private tax preparers and force them to work as IRS auditors without pay. Here’s what I said: Tax preparers are advocates for their taxpayer clients and do not work for the IRS. Even…
Read Full Article Categorized in: IRS Audits, IRS Procedure, Regulation of Tax PreparersIRS To Fingerprint Tax Preparers
Yes, you read that correctly. The Journal of Accountancy reports that the IRS plans to start fingerprinting thousands of tax preparers as part of its oversight program and run the fingerprints through an FBI database: The IRS released more details on its tax preparer oversight program on Wednesday, and said registered tax return preparers would now be…
Read Full Article Categorized in: Announcements, IRS Procedure, News, Regulation of Tax PreparersAre You an Idiot if You Use Social Media?
I have no quarrel with people who don’t participate in social media. It’s not for everyone. I do, however, have a problem with someone who eschews social media and then accuses others of being mental midgets for not doing the same. You probably know who I’m talking about. You guessed it: The Maestro. The very same fellow who has lambasted the…
Read Full Article Categorized in: Opinion, Regulation of Tax PreparersPreparer Regulation Update
WebCPA reports that Congress is having hearings on IRS oversight of tax preparers. David Rothstein, a research fellow at the New America Foundation, testified on behalf of the think tank as well as the National Community Tax Coalition and Policy Matters Ohio: The data from this past tax filing season confirms that an extremely high…
Read Full Article Categorized in: News, Regulation of Tax PreparersAre Tax Professionals Worthless?
My friend and fellow tax blogger Knox Marlow in a recent post titled Get a Real Job says that tax professionals have no “real” value to society: What value do tax professionals add to the “commercial matrix” of development, finance, production and marketing? The answer may bruise the egos of practitioners and academics from both sides of the political spectrum. The…
Read Full Article Categorized in: Opinion, Regulation of Tax Preparers, Tax PolicyNewsflash: IRS Preparer Regulation Won’t Eliminate All Preparer Fraud
Joe Kristan, a very vocal opponent of IRS regulation of tax preparers, wrote this today on his blog: From the Memphis Commercial Appeal: A Memphis woman who admitted to preparing bogus income tax returns has been sentenced to 22 months in federal prison. Cassandra Jordan, 46, also must make $75,000 in restitution to the Internal…
Read Full Article Categorized in: Regulation of Tax PreparersCPAs vs. Unenrolled, Unlicensed & Unaccountable Tax Preparers
CPA tax blogger Joe Kristan has written a rejoinder to Wandering Tax Pro Robert Flach, our favorite non-CPA, non-Enrolled Agent, non-lawyer, non-anything-that-requires-licensing-testing-and-accountability tax preparer: Robert D. Flach has put up another one of his occasional posts where he beats up on my profession: Don’t assume that because a person has the initials “CPA” after his name he…
Read Full Article Categorized in: Business advice, Individual Taxation, Regulation of Tax PreparersPreparer Registration Update: Relief for Non-Signing Tax Preparers
Paul Bonner of The Journal of Accountancy reports that IRS Commissioner Doug Shulman said the Service would probably provide relief from proposed testing and continuing education requirements for nonsigning tax preparers working under the supervision of a CPA or other federally authorized tax practitioners, such as an attorney or enrolled agent, in a CPA or other…
Read Full Article Categorized in: News, Regulation of Tax PreparersAre IRS Help Line Advisors Subject to Tax Preparer Regulation?
Douglas French of Mises Economics Blog writes (emphasis is mine): Yes, you were likely concerned that rogue tax return preparers were roaming the country, doing shoddy tax returns for unsuspecting taxpayers. The IRS is fixing this problem by requiring tax preparers to have a Preparer Tax Identification Number (PTIN). Tax preparers must pay $64.25 for the…
Read Full Article Categorized in: Regulation of Tax Preparers