After yesterday’s comments from the Commish (that’s IRS Commissioner Douglas Shulman) at the AICPA fall meeting, there is reason for some tax preparers to be concerned. They have to be careful that their desire to offer taxpayers maximum tax relief and maximum refunds does not override their desire to perform their duties ethically.
Boiled down to its essence, the program will ensure a basic level of competency for return preparers while enabling us to focus on finding unscrupulous preparers.
~ Douglas Shulman, IRS Commissioner
The enforcement segment of the IRS Return Preparer Program will include:
- Letters to preparers who have been identified as “high risk,” making sure they are doing their due diligence.
- In-person visits with preparers who have been identified as “egregious.”
- Letters and in-person visits to return preparers who are not using the Earned Income Tax Credit correctly.
- Special crackdown on “ghost preparers” (those who don’t sign or identify themselves with their PTIN)
- Undercover shopping visits to preparers who are suspected of engaging in fraud.
- Civil and/or criminal prosecution where appropriate.
- Coordinated effort with the Office of Professional Responsibility and the Department of Justice.