Unlicensed Tax Preparer-Last Yr. to File?

[dtlee]

Will, I think the addresses are used for returns prepared by a tax professional and for returns which are self-prepared.

Any paper filed returns filed by my client go to the former, Greatland agrees with me and supplies envelopes only for the "tax professional" addresses. Most software includes instructions to the client to use the "tax professional" addresses.

I think it is the book that is not TheTaxBook that used to include both addresses in their publication. Every year I would ask them why a tax professional would want to be confused as to which address to be used. Now, both TheTaxBook and NotTheTaxBook only include the address for returns prepared by tax professionals.

[Will H]

Perhaps you have come up with another reason why self-prepared returns go to a different address.

Hi Doug:

That brings us back to my original question about the reason for the two addresses. The IRS website refers to "address used only by tax professionals filing tax returns for their clients" and an address to be used by "an individual filing your own tax return."

In your opinion, does that mean the latter address should only be used for returns not prepared professionally? As I said in the thread earlier, I don't think there should be ANY "tax professionals filing tax returns for their clients" (unless they're e-filed, of course).

[veritas]

A fifty dollar fine

won't slow down those that want to beat the system. That's hardly more than a parking fine

Oregon couldn't stop unlicensed preparers until they got the penalties increased and the power to go after the offenders.

[dtlee]

If they get paid for doing the return and don't sign it they are in violation of the law and probably subject to the same 50. per return penalty

That will definitely put a stop to this practice.

[taxea]

In the future, unregistered preparers will just prepare the return and let the client mail them in as if they were self-prepared.

If they get paid for doing the return and don't sign it they are in violation of the law and probably subject to the same 50. per return penalty

[Bees Knees]

In the future, unregistered preparers will just prepare the return and let the client mail them in as if they were self-prepared.

And when the IRS asks why something was done a certain way on the return, the client will say because their accountant did it that way...

Now, on top of the $50 penalty for not providing a preparer ID number on the return, there is another $50 penalty for not signing the return.

[dtlee]

In the future, unregistered preparers will just prepare the return and let the client mail them in as if they were self-prepared.

Perhaps you have come up with another reason why self-prepared returns go to a different address. If a non-signer is using tax preparation software, the filing instructions will tell the non-client to mail the return to the "used a preparer" address. (I know...wishful thinking on my part.)

[taxxcpa]

Unregistered preparers

In the future, unregistered preparers will just prepare the return and let the client mail them in as if they were self-prepared.

[Bees Knees]

Has anyone seen the penalty for not signing up and still doing returns?

The Social Security number of the preparer is no longer accepted starting with the 2010 return. Thus, the PTIN is the only number that can be entered on the tax return under the paid preparer section.

According to TTB, page 15-2, the penalty for failure to furnish the identifying number of the preparer on the return is $50 per return, to a maximum of $25,000 per year.

[spanel]

From what i've heard, if you do a few.. probably nothing will happen.. assuming they dont IRS reject the return if efiled. If you do more than that, expect an IRS agent to visit.

I believe in the webiner the irs had back in the summer, they mentioned they will NOT reject returns without PTINs, but would make a visit.. in future years, they will will reject with no PTINs or non matching info.

Chris

[WhiteOleander]

Has anyone seen the penalty for not signing up and still doing returns? I've already registered so I was just wondering. I figure there will be alot of do-it-yourselfers that either won't care or won't know because they don't keep up with things.

[JohnH]

OK, thanks for that clarification Bees.
I was wrong.

Guess I'll have to re-up even though I've had my present PTIN since they were first introduced.
Gotta remember to do that on Dec 31. (I'll be sure to turn off the lights on my way out)

[Bees Knees]

Unless you prepare less than 100 returns in 2011...

The 100 return rule applies to the e-file mandate. The PTIN requirement is for every paid tax preparer, regardless of how many or how few returns are preparered.

[JohnH]

Unless you prepare less than 100 returns in 2011...

[spanel]

and unless you register your PTIN, you will be unable to prepare returns in 2011.

Chris