Tax Return Preparer Penalties as Issued by the Internal Revenue Service
The notice, issued by the IRS, provides guidance about the standards of conduct that must be met by a tax return preparer to avoid a penalty for an understatement of tax that may result from a position taken on a tax return.
The IRS guidance applies to large companies such as Jackson Hewitt Tax Service and H&R Block Inc as well as to private attorneys and accountants who prepare tax returns.
A tax preparer may rely in good faith upon information furnished by the taxpayer or another adviser or third party, and is not required to independently verify or review the items reported on tax returns to determine if they are likely to be upheld if challenged by the IRS. However, the tax return preparer must make “reasonable inquiries” if the information appears to be incorrect or incomplete.
One of the biggest issues, in our opinion, are the unlicensed, Super Hero tax preparers, working out of their garage or basement. These are the ones who buy the $ 79 tax software, advertise $ 50 to prepare any tax return, never sign their name on the tax return, get you a big refund and only accept cash for payment. These tax preparers need to be turned in to the IRS as they are the ones taking large, excessive, tax deductions, filing for bogus earned income tax credits, not reporting all of a taxpayers income, etc. Call us and we will let you know how serious of an issue this is and how it does affect you, their customer.
Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared. Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.
Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds. Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.
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