E-mail received about IRS

[RLymanC]

During the month of November the IRS is sending letters to more than 21,000 paid tax preparers who prepare a large number of Schedules A, C, and E. The letters, which are slightly threatening, are intended to remind tax preparers of the “consequences of filing incorrect returns and new tax return preparer requirements.” The IRS also plans to visit the offices of about 10% of those receiving letters during the coming tax season (because, the IRS says, many practitioners don’t keep regular office hours outside of tax season).

You can view the letter and IRS FAQs regarding the letters and office visits at:

https://www.irs.gov/taxpros/article/0,,id=249069,00.html

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[Roberts]

I can only imagine the headache an IRS visit during tax season would generate.

I'm guessing my volume is way the heck too low for them to be interested in me.

[ChEAr$]

I had one of those once upon a time, way back about 1991 I think. IRS rounded up what staff they could find to visit preparers' offices to check on how they handled efiling and whether or not procedures were up to snuff.

Well, the two ladies who visited me were obviously out of their element and I ended up giving them instructions on just how efiling operated; even while they were there sending a couple of returns "over the telephone wires." They were impressed.
And they learned a lot, too.
One started off asking about how I paid the refunds to the clients! HAH
(no, I never did those loans.)

[erchess]

waste of time

All but one or two of my clients file Sch A and most also file C or E. In fact I can only think of one client from the last few years who did not file one out of the big four - A, C, D, E & F and only a couple who did not file more than one of them. On the other hand, like Roberts I think I am too small to get a letter, but we will see. I would suggest that the letters are a waste of resources. More good would come from skipping the letters and going with whatever additional firm visits could be conducted at the same cost.

[S T]

Target Area

If you take a look at the Sched A, Sched C and Sched E target areas listed in the Article

it is the
Sched A - 2106 and mileage and then also Charitable Contributions
Sched C - gross receipts - expenses that are ordinary and necessary - pretty Broad and General in the target area - don't you think
Sched E - Reporting Income and Expenses correctly - Depreciation, and limitations on passive acitivites-at risk rules.

I have a mix of all on my client base - but would not say a large number of the "above target areas" except the Broad Generalities on the Schedule C - that could mean almost anything.

Sandy

[peggysioux]

Letter from the IRS

I received one of those letters this past week and I am a one-person office who does about 100 returns - I was surprised to receive the letter. Hopefully, I am not one of the 10% of tax preparers who will actually receive a visit!

Peggy Sioux

[taxxcpa]

I received one of those letters this past week and I am a one-person office who does about 100 returns - I was surprised to receive the letter. Hopefully, I am not one of the 10% of tax preparers who will actually receive a visit!

Peggy Sioux

I thought they were sending the letters to people who did a lot of returns. I have a low volume of returns and thought I would be off their radar screen.

[OtisMozzetti]

audit examination during the main tax filing season

I can only imagine the headache an IRS visit during tax season would generate.

One thing which generated a lot of heat during one of those IRS Forums this past summer was the fact that IRS has been scheduling audit examinations during the Jan. 1-April 15 tax filing season.

[S T]

Hopefully

PeggySioux,
Hopefully you are under the radar - read the Notice carefully

It says 21,000 Letters were sent out, but only approximately 2,100 tax return preparers (approx 10%) will be paid a visit.

Not sure if you receive advance warning on the visit!

Here is the link again http://www.irs.gov/taxpros/article/0,,id=249069,00.html in case you want to review your Sched A, C and E clients. Sched A and E are pretty straight forward - Sched C is so broad in general terms - not sure what IRS is looking at, except gross receipts and depreciation - possible travel/entertainment/ and Auto Expenses.

Keep us informed.

Sandy