PTIN fiasco, Is my client cheating on me?

[DaveinTexas]

Hello all,

I read an article that states "IRS identifies 100,000 preparers who failed to follow new PTIN rules". Here is the link if you like: http://www.irs.gov/newsroom/article/...241931,00.html

Then just today I received a fax from my client that received an IRS letter addressed to the client, a Letter 4732. The first line reads:

Dear Tax Professional:

You must obtain a PTIN, Your SSN was used as the paid preparer identification number on tax returns during the 2011 filing season. Blah, blah, blah, you need to obtain a PTIN.

Note: If you did not prepare tax returns entering your SSN....and believe someone used your SSN improperly, please notify the IRS...

Just wanted to make you guys aware that of the 100,000 preparers who failed to follow the new PTIN rules, one of them may have been my client! I prepared her return and her daughter's return and made sure my PTIN was listed on the return. So either the IRS made a mistake (No, never that!) or someone has obtained my client's SSN and is using it for evil doing.

Be on the lookout, I informed my client to call the number on the letter to get some more answers. I'll update as I gather more information.

[DaveinTexas]

I failed to read the post below....sorry

I didn't notice this subject was already posted....my apologies.

[David1980]

I wouldn't really be surprised if someone was using your clients SSN. Seriously, how else do you fill in preparer information? You don't want me to put MY SSN on a return do you!? And those PTINs... pfft, $65! Ridiculous! No, obviously the way you're supposed to do this is to randomly enter numbers.

And even better, randomly enter numbers on all returns. Do 200 returns, you can use 200 SSN! They'll never find you!

[DaveinTexas]

My client just spoke to the IRS

I wouldn't really be surprised if someone was using your clients SSN. Seriously, how else do you fill in preparer information? You don't want me to put MY SSN on a return do you!? And those PTINs... pfft, $65! Ridiculous! No, obviously the way you're supposed to do this is to randomly enter numbers.

And even better, randomly enter numbers on all returns. Do 200 returns, you can use 200 SSN! They'll never find you!

The IRS told her on the phone, about an hour ago, to disregard the letter and that it was a mistake. Of course that should make everyone feel better right?!? I told her that it wouldn't be a bad idea to obtain a free copy of her credit report in the next few weeks to ensure that no bogus accounts have been opened in her name; to be safe.

Disregard the letter, but in the meantime we will stand by these estimates as true and correct (over 100,000 preparers.....). I'm surprised the guy at the IRS didn't blame this error on the "previous administration" and the "wars in Iraq".

Great stuff!

[appelman]

After several days of trying

I finally got through to someone at the PTIN office, who also told me to disregard the letter and not to worry. He speculated that someone had filed a return with an EIN that matched my Social. This seems highly improbable to me, especially on the massive scale on which it seems to be occurring. But he also doubted that the whole practitioner community was being hacked.

[taxea]

Hello all,

I read an article that states "IRS identifies 100,000 preparers who failed to follow new PTIN rules". Here is the link if you like: http://www.irs.gov/newsroom/article/...241931,00.html

Then just today I received a fax from my client that received an IRS letter addressed to the client, a Letter 4732. The first line reads:

Dear Tax Professional:

You must obtain a PTIN, Your SSN was used as the paid preparer identification number on tax returns during the 2011 filing season. Blah, blah, blah, you need to obtain a PTIN.

Note: If you did not prepare tax returns entering your SSN....and believe someone used your SSN improperly, please notify the IRS...

Just wanted to make you guys aware that of the 100,000 preparers who failed to follow the new PTIN rules, one of them may have been my client! I prepared her return and her daughter's return and made sure my PTIN was listed on the return. So either the IRS made a mistake (No, never that!) or someone has obtained my client's SSN and is using it for evil doing.

Be on the lookout, I informed my client to call the number on the letter to get some more answers. I'll update as I gather more information.

Here is a link that explains better why your client received a letter

http://blogs.forbes.com/kellyphillipserb/2011/07/13/irs-targets-100000-tax-p

rofessionals-for-noncompliance/

[appelman]

I don't see that it explains anything at all!

Specifically, why fully registered preparers, as well as non-preparers, are getting these letters.

[DonPriebe]

More letters

Specifically, why fully registered preparers, as well as non-preparers, are getting these letters.

I didn't get that letter, but yesterday I got (another) copy of the letter informing me that the IRS will begin accepting renewals of EAs on June 1. Since I already did renew and they debited my account, I'll ignore it.

By the way, the letter consists of two pieces of paper - one the actual letter complete with my name and mailing address, and the other a slip sheet with my name and mailing address in about the same place so it would show thru the envelope window.

[S T]

No PTIN Letter

While I haven't received the PTIN letter like others have in a prior post,
I have received two US Mail letters on the EA renewal - one dated 6-14-2011 and one dated 7-8-2011.

Yes, I am on EA renewal (delayed) and I like Don Priebe, have already renewed online, with confirmation, and fees out of the bank.

Seems like no one on the PTIN program or EA renewal program at IRS is co-ordinating information between paper and online filing.

So it would system right now, is not functional, there are delays, non communication between online and paper - and generally not reviewing proper information.

A little disturbing on the other post about PTIN notices going to registered tax preparers, and then also to clients. I would like others on the other post, would be calling and emailing the IRS if I received the letter. IRS has already acknowledged "ghost preparers" in their recent bulletin this last week.

Sandy