The IRS Wants YOU, Tax Preparers, to Help Fight Non-Complicance

WASHINGTON — IRS Commissioner Doug Shulman announced today that by the end of 2009, he will propose a comprehensive set of recommendations to help the Internal Revenue Service better leverage the tax return preparer community with the twin goals of increasing taxpayer compliance and ensuring uniform and high ethical standards of conduct for tax preparers.

Some of the potential recommendations could focus on a new model for the regulation of tax return preparers; service and outreach for return preparers; education and training of return preparers; and enforcement related to return preparer misconduct. The Commissioner will submit recommendations to the Treasury Secretary and the President by the end of the year.

“Tax return preparers help Americans with one of their biggest financial transactions each year. We must ensure that all preparers are ethical, provide good service and are qualified,” Shulman said. “At the end the day, tax preparers and the associated industry must be part of our overall game plan to strengthen the integrity of the tax system.”

The first part of this groundbreaking effort will involve fact finding and receiving input from a large and diverse constituent community that includes those that are licensed by state and federal authorities — such as enrolled agents, lawyers and accountants — as well as unlicensed tax preparers and software vendors. The effort will also seek input and dialog with consumer groups and taxpayers.

“We plan to have a transparent and open dialogue about the issues,” Shulman said. “At this early and critical stage of the process, we need to hear from the broadest possible range of stakeholders.”

Later this year, the IRS plans to hold a number of open meetings in Washington and around the country with constituent groups.

More information, including schedules and agendas for public meetings, will be posted on the “Tax Professionals” page on this Web site and will be communicated to stakeholder groups.

Taxes Can Be Scary: Part 4

Tax Fear # 4

Afraid my tax advisor is incompetent or a crook.


This fear has been substantiated for some as soon as they turned on the news and saw that a number of Jackson Hewitt franchises had filed bogus returns for clients and as a result, 125 branch offices were shut down. The same fear is also validated every time they hear a friend say that they were audited because the person that did their taxes screwed something up. It’s a reality for some but it does not need to hold you back from filing your returns.

Everybody makes mistakes, even tax professionals. I am afraid it’s human nature. But no one said that you had to pay for those mistakes. Do your homework and hire a reputable firm. You can look them up online at the Better Business Bureau’s website or go to RipOffReport.com and read the testimonials that have been posted. And once you are a client, don’t take every suggestion at face value. Make sure you ask questions and understand why it is that they are putting what they are down on your tax return. Remember, if it sounds shady…it probably is.

Cheers!
Taxus

Think You Can Prepare Your Own Taxes? Prove It!

Money Central has a quiz out to test your tax I.Q.

I know a lot of people believe they know enough to prepare their own taxes despite educated people urging them not to, but now you can test your tax I.Q. and settle that dispute forever.

If you find you ARE savvy enough to do your own taxes, check out these articles:

E-Filing Can Be Dangerous. Here's Why.

CPA? Software? E-File? WHAT'S A GIRL GOTTA DO TO GET FILED?

If you find you DO need a tax preparer, check on this article on how to choose one.

CPA? Software? E-File? WHAT'S A GIRL GOTTA DO TO GET FILED?!

So, it's that time of year again... TAX SEASON.... yay.

Naturally there are many choices for preparing your tax returns... CPA, tax prep firm, e-file, software. But what's the best?

Well, once again, it's all about choice, that is, your preference. Working for the tax industry I can tell you, because the experts have told me, that you should always get your return professionally prepared. The peace of mind of knowing you got it done right always outweighs the expense. However, you need to know who to go to, because although preparers are filing on your behalf, the IRS still sees you as solely responsible for what's on that return, including mistakes. Therefore, choosing the right preparer is key. I recommend Sharon Raines, and Pat Harker.

However, if you're hell bent on getting it done cheap, tax software may be the next best thing. Still, it depends on your return. If it's complex, a tax preparer may be the best way to go. On the other hand, if it's simple you may be wasting money on software when you could do it yourself through e-file. Sharon has a good article on finding the best tax preparation software and some good points to think about when choosing software over other options.

Last, but not least, is the cheapest option by far: IRS e-filing. (It's free. Can't beat that!) Although this option is only available to those who make under 54K, if you fall within this requirement, have a fairly simple return, and feel confident in filing it yourself, this may be your top choice. However, as usual with the IRS, there are further stipulations and specifics to e-file eligibility.

So, you have a decision to make. Again I'll stress getting your return prepared by a tax preparer. You do NOT want to get on the IRS' bad side by making a mistake. However, there are other options.

Additional Articles:

Which Tax Software is Best to Prepare Your 2007 Return?
IRS Free File- Who Can Do This?

Tax Term of the Week

Licensed Taxpayer Representative- an individual who is licensed to practice before the IRS and solve someone's tax problems under Circular 230. They do not practice law, nor do they certify accounting practices. The LTR is the client's representative before the taxing authorities (IRS). They use their years of experience and vast know-how to effectively advocate on their clients behalf.

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As always, you can find an array of articles by perusing this site or by checking out my coworkers' individual site:

IRS MIND

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And if you need the assistance of a tax resolution firm, seek out the best: Effectur, Inc.

Jackson Hewitt? Did You Not Hear What Happened??

Just the other week I took a call from a taxpayer who had been audited by the IRS for 3 consecutive tax years. The person on the phone says to me, "I don't understand how mistakes were made. I had Jackson Hewitt handle the tax returns for those years."

Ahhhh. Now I understand. Apparently the taxpayer had not heard the news from this past summer. In April of 2007, the operators of more than 125 Jackson Hewitt Tax Service Inc. tax preparation offices were sued by the U.S. government. Jackson Hewitt was accused of cheating the U.S. Treasury out of more an $70 million through what the court ruled as a "pervasive and massive series of tax-fraud schemes." Ouch. That's not going to be good for business.

You have to understand, a lot of the tax prep offices employ people with no tax background and then run them through a crash-course on preparing taxes. In the end, they claim to have gotten you money back on your returns you wouldn't have received without their help. While this is true, you were actually getting money back you weren't entitled to in the first place. So now you are going to be out the money it cost to have the company prepare your taxes, you will have to pay the money back you received from the U.S. Treasury, and will now owe penalties and interest on that money you owe.

If you have several years of tax returns that need prepared, it is best to seek out the assistance of a professional firm with TAX and IRS EXPERIENCE. Don't rely on these tax prep chains that promise more money on a tax return. It will only cost you in the end.

Cheers!
-Taxus


As always, you can find an array of articles by perusing this site or by checking out my coworkers' individual sites:

IRS MIND
Tax Negotiation
Tax-Thoughts
Little Miss Tax Lass
Tax Settlement


And if you need the assistance of a tax resolution firm, seek out the best: Effectur, Inc.