IRS Sends Letters To Tax Preparers
January 14, 2010
Source: NATP
IRS Sends Letters to Preparers
During the 2010 tax filing season, the IRS will step up its efforts to ensure paid tax return preparers are assisting clients appropriately. Last week, as part of this effort, the IRS began sending 10,000 letters to paid preparers nationwide. These preparers are among those with large volumes of specific tax returns where the IRS typically sees frequent errors. Specifically, the letters will encourage return preparers to:
- Review pertinent books and records of Schedule C filers.
- Determine the correct itemized deductions of Schedule A filers.
- Make sure those who claim dependents and the EITC are entitled to do so.
- Ask first-time homebuyers the right questions to make sure they qualify for the First-Time Homebuyer Credit.
During this filing season, IRS revenue agents will also visit some of the preparers who receive these letters as part of an education and outreach effort to discuss their obligations and responsibilities to file accurate tax returns. This is not a compliance audit and the IRS has indicated that it will not assess return preparer penalties during this visit. The IRS revenue agent will visit the tax return preparer’s place of business or a mutually agreed upon location. According to the information available on the IRS website, the visit is expected to last approximately three hours. In addition, the IRS will more widely use investigative tools during this filing season aimed at determining tax return preparer non-compliance. One of those tools will include visits to return preparers by IRS agents posing as taxpayers.
Additional information, including a copy of the letter is available on the IRS website
