Roger Russell, Senior Editor of Accounting Today reports that the IRS will be targeting incompetent and fraudulent tax preparers and their clients in 2010 (emphasis added):
Tax return preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients are a major concern for the Internal Revenue Service during the upcoming filing season, according to a spokesman for the service.
“Although the taxpayer may not be aware of the mistake, it is the taxpayer, not the return preparer, who must pay additional taxes and interest and possible penalties,” he pointed out.
The IRS Return Preparer Program focuses on enhancing compliance in the return-preparer community by investigating and referring criminal activity by return preparers to the Department of Justice for prosecution. The IRS can also assert appropriate civil penalties against unscrupulous tax return preparers.
The service expects that, “Reputable preparers will ask to see receipts and will ask multiple questions to determine whether expenses, deductions and other items qualify.”
Criminal and civil actions on tax fraud committed by return preparers have resulted in numerous permanent injunctions against abusive return preparers. The incarceration rate for those who are sentenced has been more than 80 percent over the past three years.
(Hat Tip: WebCPA)
Related Posts:
- Unenrolled Tax Preparers and the Practice of Law
- WebCPA: Avoid IRS Audit by Hiring Licensed Tax Preparer
- Beware the CPA Imposter
- Beware the Unlicensed Preparer
- Unenrolled Tax Preparer Told Clients Their Returns were “Pre-Approved” by the IRS
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1 False Refund Schemes and Backwards IRS Return Processing Rules // Jan 13, 2010 at 10:28 am
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