They're making a list
Among the interesting news stories this week is information about the IRS's ongoing plan to randomly check up on tax return preparers. The IRS has indicated it intends to focus on tax preparers who have a practice that includes the preparation of a large number of individual tax returns that contain Schedules A, C, and F. A letter from the IRS has been mailed to 21,000 tax preparers. The point of the letter seems to be to remind tax preparers that they should take their jobs seriously and not mess up their clients' returns. If you receive one of these letters, you have a one in ten chance of being singled out for an in-person visit from your friendly IRS representative.
Sometime between now and April 15, 2012, 2,100 of the IRS letter recipients will get to chat with an IRS revenue agent who will be on the lookout for tax preparers who failed to perform certain due diligence tasks, like signing returns, giving clients a copy of their return, keeping taxpayer information secure, offering lollipops to the kids, refusing to claim pets as dependents – you know the routine. Please let us know if you are a recipient of such a visit and would like to share your experience with the AccountingWEB audience.