A few days ago, one of our members told us about the "audit from hell." The auditor insisted on documentation that is not required, and documentation that the client (not the preparer) should keep. I emphasize that this "audit" was targeted at the preparer and NOT clients, whom I am told get a "free pass" even when EIC defalcations are discovered.
I would like to ask some of our HRB people (e.g. Oxtrainer, Gary M, Oleander) whether any of their offices are invaded by this kind of audit, and if so, what happens?
My hunch is that IRS would rather not, as they would meet resistance from the vast resources of a large, publicly traded company. I know from observation that they can be very obtrusive and unfair to one-horse shops (like myself), and to small businesses.
On the contrary, I am told that the IRS consults with Block on many issues, such as forms design, E-file protocol and other items. I suspect that their interface with Block might even exceed the audience received by our own organizations such as NAEA and NATP. Looking at this as a positive, it may give HRB an enhanced opportunity to make its voice heard for our profession.
When I hear of audits like this which are targeted at preparers (instead of going after EIC known to be fraudulent) it makes me increasingly wary of them regulating our industry. Although there is broad acceptance from most of our board members, I think arbitrary and abusive government directives will replace unscrupulous preparers as the bane of our industry.
Any Block people care to tell us about IRS auditing their offices, and what usually is the outcome?
I would like to ask some of our HRB people (e.g. Oxtrainer, Gary M, Oleander) whether any of their offices are invaded by this kind of audit, and if so, what happens?
My hunch is that IRS would rather not, as they would meet resistance from the vast resources of a large, publicly traded company. I know from observation that they can be very obtrusive and unfair to one-horse shops (like myself), and to small businesses.
On the contrary, I am told that the IRS consults with Block on many issues, such as forms design, E-file protocol and other items. I suspect that their interface with Block might even exceed the audience received by our own organizations such as NAEA and NATP. Looking at this as a positive, it may give HRB an enhanced opportunity to make its voice heard for our profession.
When I hear of audits like this which are targeted at preparers (instead of going after EIC known to be fraudulent) it makes me increasingly wary of them regulating our industry. Although there is broad acceptance from most of our board members, I think arbitrary and abusive government directives will replace unscrupulous preparers as the bane of our industry.
Any Block people care to tell us about IRS auditing their offices, and what usually is the outcome?
Comment