unauthorized efilers?

[tacks]

I know of an amature preparer in a low income area who routinely efiles despite not being authorized by the IRS -- he's not an ERO.

Anyone ever heard of the IRS ever cracking down on them? It seems as if this area of non-compliance might be a relatively low priority for the IRS.

Otherwise i'd imagine it'd be easy to catch these people. They could merely look for mulitple returns coming from one IP address.

[gkaiseril]

He is probably going through another ERO or is using someone else's EFIN.

[tacks]

He is probably going through another ERO or is using someone else's EFIN.

Hi, gkaiseril. Thanks for posting.

I understand that several preparers do that. But i know for a fact that this particular guy is NOT do that. He's just filing them as if he's not a preparer and not receiving compensation.

(not a risk that i'd expect any of us would to take)

But i don't believe that this fellow is doing all that many either. He's an amature who works from home.

[Redneck]

online

He must be using the online filings.

[David1980]

Through the normal efile system you need an EFIN, and they do get turned off if you do bad things. You'll get an IRS reject code 29 - usually a lot of people get this at the start of tax season, because people will forget to renew their EFIN.

Even if you're not acting as the preparer, you still need the EFIN for the efile as ERO.

You need an EFIN for all of the efile methods including "online". When you apply for an EFIN you'll see the checkboxes for the different things you could use it for.

It's possible he's just using the DIY software/websites to file the returns as if the taxpayer were using the DIY stuff themself. In which case he wouldn't need an EFIN, but rather whatever he's using (IE, turbotax) would be using an EFIN and be the ERO.

[S T]

My thoughts

thought about this situation pre- Dave's post, I just think this guy is using DIY efiling, and doesn't bother with the "channels" us tax professionals go through to efile and be recognized as a legitimate preparer.
One of your prior posts suggests that this person is not signing his name to any returns? Which means that is not being recognized on an efile either.
Not sure about the IP address you mention

What do you want to accomplish?

Sandy

[tacks]

I just think this guy is using DIY efiling, and doesn't bother with the "channels" us tax professionals go through to efile and be recognized as a legitimate preparer.
One of your prior posts suggests that this person is not signing his name to any returns? Which means that is not being recognized on an efile either.

Yes, that's exactly what i understand him to be doing. And i suspect that if i know of one there's probably many many more.

Not sure about the IP address you mention.

I mention the IP address -- internet provider address -- because that's how, i believe, the irs could catch him. I would imagine that it would be quite easy for the government to catch this guy. It would be easy for them to detect multiple 1040s being generated from one single computer (w/one single internet connection having one single IP address). What is the likelyhood of an individual efiling 30 returns and not reporting any income as a tax preparer?

What do you want to accomplish?

I'm simply being curious. I've browsed many of the conversations on here using the search function. (again, thanks to everyone on the forum. lots of helpful stuff.) But i've never heard any mention of this topic.

Truthfully i have some late returns on my desk. And i'd be better off focusing on them.

(i confess that sometimes i talk about tax returns more than i'll actually do them )

[Jesse]

We have one such "preparer" in our area that channels through the DIY programs. I am not aware of exactly how these programs work but they seem to "pop" out quite a few. Does each return get processed separately by social security number? If a person does it year after year does the taxpayers information transfer forward or do you need to re-enter all repetitive information over again?

The returns that I have reviewed are not signed and no portion of the preparer section on the return is completed. If discovered I would think there would be issues not only with the IRS but also with the underlying DIY company as there must be something in the fine print agreement that states it is for non-commercial personal use.

[tacks]

If discovered I would think there would be issues not only with the IRS but also with the underlying DIY company as there must be something in the fine print agreement that states it [the software] is for non-commercial, personal use.

Yes, I believe that i see what you're saying. I agree. These amateurs are breaking an agreement by using the personal software for commercial use. But i'm guessing that nothing would come of it simply because it wouldn't be cost efficient for the TurboTax or whoever to go after these little guys. They don't have the deep pockets -- blood from a stone.

[JohnH]

A common occurrence I see is when a client's kid goes off to college and gets a part-time job wherever he/she is in school. Then we find that "a friend" helped them with their tax return (often claiming the personal exemption in error because that got them an extra $100 or so in refund). I'd expect to find a lot of this going on in college towns.

[tacks]

...then we find that "a friend" helped them with their tax return (often claiming the personal exemption in error because that got them an extra $100 or so in refund).

LOL!!!

That's exactly what my sister did when we were growing up!!! And that's also why my father didn't allow me to prepare my own 1040.

[MLINDER42]

unauthorized efilers

You also have in th inner cities people who do 25 to 50 returns that use turbo-tax but don't e-file them.I have several people who come into my city office to have us e-file and do the bank product.I tell them they could have saved the money they paid by coming direct but they still like using their friend.

[ChEAr$]

Thinking further

about this subject.

What IF such a rogue preparer as I might call him who doesn't have an EFIN but relies on
free efile software on the web were to follow the rules and actually insert paid preparer's
information?

Is there any reason why a taxpayer couldn't take the paper return and enter everything
faithfully on his computer at home? What's to prevent that?

[kaimana]

It sounds like he may be preparing them as self-prepared returns and not signing them but collecting money for preparing them...You should turn him in.

[tacks]

It sounds like he may be preparing them as self-prepared returns and not signing them but collecting money for preparing them...

That's exactly what he's doing.

You should turn him in.

I see where you're coming from. And yes, it certainly has crossed my mind to turn certain individuals in. One wonders why we go to all of the trouble of being compliant when others don't bother. It's frustrating.

If the tax laws are not enforced then why the heck should anyone hiring us?