IRS efforts to increase accurate return preparation

[S T]

Hopefully

Just a nice "friendly visit" NOT an EITC audit.

But if you are heavy in EITC filings, I think I would be reviewing each of the EITC files for the visit.

Maybe all this is just a reminder that we all need to visit our client files and make sure we have asked the questions, the questions have been answered, and that there is some documentation.

Dany, I am sure you will do fine, if "they" actually pay you a visit.

Sandy

[geekgirldany]

I'm curious how you show that you asked all the questions to complete a tax return if you don't have some written checklist or organizer to follow? As theIRS increases enforcement efforts against preparers, it seems to me that written records are a good CYA move.

I've been doing returns so long I just know what to ask I suppose.

I take out a piece of paper and write down the basic information. Go through what they brought in and ask additional questions if needed. If there is something in regards to deductions, credits, or EIC I will tell the client right then that I am not sure I will have to do some research. I later call back to get the answers. I don't do returns while people wait. So this helps me to make sure the return is prepared correctly.

I do 125 to 150 returns a year. I am a one person office. I don't do that many EIC. If there is a "I am not sure" type of situation with EIC I call the person to get the answers. If I wrote down the answers? Some I did some I did not. I always make an effort to write down the answer to questions I have have and put them in their folder. I haven't really encountered that many unclear EIC returns.

[geekgirldany]

You might want to look at the IRS web site and take the IRS's due diligence course for the EITC.

Strange enough I got an email today that they are doing a Webinar on that exact subject on 1/13. So I will more than likely watch it.

Bart, I have to agree. It said they will be visiting many of the preparers that receive the letter. I just wonder how they decide who receives the letter. Is it doing alot of EIC... Small Business Returns? Just makes me wonder.

Sandy, yes I think I would be fine. I agree it is a good reminder to everyone about make sure questions are answered and it is documented.

[Black Bart]

Visits from the Boogeyman

Strange enough I got an email today that they are doing a Webinar on that exact subject on 1/13. So I will more than likely watch it.

Oh well, I guess I'll watch it too -- balky old mules have to be driven once in a while and I have to read up on it ever' year anyway to get back all I forgot from last year. I couldn't find that webinar info on the IRS website -- do you have a link?

Bart, I have to agree. It said they will be visiting many of the preparers that receive the letter. I just wonder how they decide who receives the letter. Is it doing alot of EIC... Small Business Returns? Just makes me wonder.

It does make a person wonder -- "Why ME?" I'd be thinkin'. Maybe it's random or maybe it's those who do lots of Cs (you said you didn't do many EICs, didn't you?). I only got that first notice (a single sheet of folded paper: "You must use form W-2..."). Since you got that plus the second letter and an email then I suppose that might put you on the short list, although there's so many preparers that you've probably still got an excellent chance of not being visited.

I still think it's going to be mostly for psychological effect, but of course if it's my office that gets "visited" then, psychologically speakin', they've got me licked.

[Uncle Sam]

IRS visits

For those of you who DO get visited - could you please report back here as to how it went?

Years ago - I saw a cartoon of a lady in a Hallmark card store asking the clerk "Do you have a card for a person who's survived an IRS audit?"

[Lion]

I get letters

I've gotten IRS letters the last two years telling me: don't file without W-2s, EIC, etc. I do under 100 returns, many throughout the year instead of now through April, seldom any prior to March when clients finally have broker statements and maybe K-1s. I don't have anyone who gets EIC. I'm home-based but out at least two days a week, so they'd find a locked door if the IRS doesn't make an appointment. I'm out in the boonies. They just wouldn't make any money by visiting me and waste a lot of time! If they pay me a visit, I'll treat them like a tele-marketer and talk to them politely and stretch it out to take up their time the way they take up my time. Can I put the agent "on hold" while I check on my laundry or take a client's call or go to the bathroom or fix myself a snack (I'm diabetic and have to eat on a regular schedule)? Should I play The Nutcracker Suite for them while I'm out of my office?

[Black Bart]

Great idea!

...Should I play The Nutcracker Suite for them while I'm out of my office?

Here's the one they've been putting us on half-hour hold with for umpteen years -- drives me crazy. Revenge is long overdue.

http://www.youtube.com/watch?v=GT7_Y1pIBb4

[geekgirldany]

r. I couldn't find that webinar info on the IRS website -- do you have a link?

It does make a person wonder -- "Why ME?" I'd be thinkin'. Maybe it's random or maybe it's those who do lots of Cs (you said you didn't do many EICs, didn't you?).

Here is the link. Drake actually emailed me about it not the IRS.

http://www.irs.gov/businesses/small/article/0,,id=158856,00.html

Yeah makes me think of the song "Why me lord"
But yes I do alot more Schedule C's then I do EIC. I probably have 10 out of the 125 I do.

[geekgirldany]

Well that is interesting to listen too. Here I thought they were replaying the first part of the song over and over again... but the whole song is actually like that.

[Lion]

Nutcracker

I think it's the Dance of the Sugarplum Fairies from the Nutcracker Suite. It's spoiled the Christmas season for me, because everytime I hear it I think of tax season and the IRS. One time I was dancing through the house to it, a phone in each hand (I'd tried two different IRS numbers) when the exterminator walked through the front door! Now, if only I could time that for the IRS visit....

[Black Bart]

Different dirges for different districts

I think it's the Dance of the Sugarplum Fairies from the Nutcracker Suite. It's spoiled the Christmas season for me, because everytime I hear it I think of tax season and the IRS. One time I was dancing through the house to it, a phone in each hand (I'd tried two different IRS numbers) when the exterminator walked through the front door! Now, if only I could time that for the IRS visit....

Dany and I are in the South and it's definitely Wolfie's night music here. However, I just checked out your Connecticut's sugarplum serenade on Youtube and -- well, my apologies 'cause I gather you like it and all -- but to me it's not much better. Would a little soft rock be too much to ask of them?

[David1980]

I can't remember a time when I have ever prepared a return "WITHOUT THESE DOCUMENTS" exception being in late March or April when the taxpayer was not able to obtain a W-2 form and I had to prepare witha "substitute 4852 form ?"y

I know of a preparer in my area who has already completed 400 tax returns. Just waiting for the IRS to start processing them so they can get all their RALs going.

I have my suspicions over how that is possible - that they are doing returns based off pay stubs. I would hope the IRS when doing it's preparer visits puts special emphasis on anyone who has a disproportionately large number of early filers.

[Black Bart]

Just curious, but

I know of a preparer in my area who has already completed 400 tax returns. Just waiting for the IRS to start processing them so they can get all their RALs going.

I have my suspicions over how that is possible - that they are doing returns based off pay stubs. I would hope the IRS when doing it's preparer visits puts special emphasis on anyone who has a disproportionately large number of early filers.

is it a franchise or an independent practitioner? Around here J-H guys are usually the ones heavy into the pre-season stuff.

[taxxcpa]

Pay check stubs

I know of a preparer in my area who has already completed 400 tax returns. Just waiting for the IRS to start processing them so they can get all their RALs going.

I have my suspicions over how that is possible - that they are doing returns based off pay stubs. I would hope the IRS when doing it's preparer visits puts special emphasis on anyone who has a disproportionately large number of early filers.

I suppose you could do them with the pay check stub if you didn't submit them until you verified the data to the actual W-2s when received.
None of my clients are ever ready this early. One or two may file in January, but most come in Feb, March and April. Fortunately, I only have one or two EIC clients so I don't think I am likely to get checked for EIC fraud.
I think my business clients are pretty honest, but I have no way of knowing if they are doing part of their business under the counter.

[David1980]

is it a franchise or an independent practitioner? Around here J-H guys are usually the ones heavy into the pre-season stuff.

Independent.