IRS Form 14157: Complaints against Preparers

[clr]

How long has this form been in existence?? Revise date 07/2011

[jimmcg]

How long has this form been in existence?? Revise date 07/2011

I believe it is new this year. Nice form.

[gboykin]

I don't like the fact that the contact information is optional. If someone complains about me, they should at least man up and let IRS know who issued the complaint.

I can see some competitors possibly turning in these forms against each other.

[JohnH]

I didn't know about this form.
First time I've seen it.
Sure hope I don't see it in the future.

http://www.irs.gov/pub/irs-pdf/f14157.pdf

[FEDUKE404]

My 2¢ worth

I took a look at the form and, quite frankly, I don't see a lot there which any legitimate tax preparer would fear. Most of the categories (line 13a) constitute problems where an IRS inquiry might well be worthwhile. I suppose the "other" area could catch a lot of leftovers, but I don't see this as a form that a mere disgruntled client would use.

However, I did find the category of "Paid preparer filed returns using off shelf software or free file" to be revealing. That issue, combined with the overall requirement that professionally prepared returns must now be efiled, might put an end (or at least a slowdown!) to those who get creative with a little white-out to remove the "Self-Prepared" from the line for the firm's name on a TurboTax return. For that matter, read the description for same on page 4 of the form!

FE

[taxea]

I don't like the fact that the contact information is optional. If someone complains about me, they should at least man up and let IRS know who issued the complaint.

I can see some competitors possibly turning in these forms against each other.

#1 I can assure you that they will not tell you who made the complaint or whether or not it was anonymous.
#2 I certainly will and not to try to get rid of a competitor but to weed out the vermon.

[Gary2]

I don't know about this specific form, but I'm reasonably certain that they've had a page on the IRS web site for information on how to report complaints, and that it's been there for at least a couple of years (not necessarily easy to find).

[FEDUKE404]

Further explanation

I don't know about this specific form, but I'm reasonably certain that they've had a page on the IRS web site for information on how to report complaints, and that it's been there for at least a couple of years (not necessarily easy to find).

We all have had to deal with the "whiners" and chronic complainers....that is just a part of serving the public. To a certain extent the tax person can reduce the chance of such exposure by deciding what type of clients to accept, or more importantly NOT to accept. A preparer with a very/exclusive EITC and/or RAL-type client base better be ready for just about anything.

OTOH, I do see this IRS form as referencing the types of errors that all, or at least most, professional tax preparers could avoid basically by adhering to fundamental ethical business practices. Sure, there is that ever-present "other" on line 13a but to a certain extent most of what goes there could easily occur in situations such as my paragraph above. Were I to be doing any of the named nineteen items covered in line 13a I could reasonably expect for the IRS to have some issues with me!!

As for the "anonymous filer" of the form: One would at least hope the IRS folks who receive/process this form would pay some attention to the details and supporting documents provided, so as to decide whether a "visit" is necessary.

BOTTOM LINE: I have little, if any, fear of this form!

FE

[JohnH]

Clients who owe a lot of money can sometimes become very irrational. They're angry with everybody in sight and they can overreact in some very odd ways. And someone at the end of their rope with nothing to lose might not care very much whether their statements are factual. As FE said, managing one's client base can be a significant factor in affecting whether this form might be a potential problem. I'm less concerned with competitors misusing it, but I wouldn't rule that out entirely. Motivations can be anything from trying to gain a competitive edge on the one hand, all the way to an unhealthy obsession with doing the job of the IRS for them on the other.

I don't have anything to fear from the specifics of the form, but I still see lots of potential for abuse. How the IRS handles marginal complaints will be the key. Ask any health care professional what it costs in time and resources to deal with malpractice claims. The unsubstantiated claims cost as much or more to defend against in many cases.

I do wonder if this could become a potential retaliatory tactic for a client who is being pursued for not paying their fee. I don't take legal action, send meaningless letters threatening to tell IRS to take me off the return as paid preparer, or contemplate sending 1099-C's as has been suggested on this forum and others form time to time. But if I did advocate any of those practices, I'd think twice knowing that the client might use this form in an attempt to muddy the water.

[BP.]

One of the complaints- "Preparer Failed To Sign." (Which is, of course, from the potential complainer's perspective.)

Reminded me of this thread: http://www.thetaxbook.com/forums/sho...arer+signature

[New York Enrolled Agent]

I don't know about this specific form, but I'm reasonably certain that they've had a page on the IRS web site for information on how to report complaints, and that it's been there for at least a couple of years (not necessarily easy to find).

You are correct - Form 3949A was available for complaints about non-enrolled preparers since at least 2007.

[DaveO]

If the IRS required the complainer to sign the form with a perjury penalty jurat I bet there would be very few of these filed.

[erchess]

My Position if contacted by IRS

would be that without hard evidence I have done wrong or at least the name and contact info of the accuser I will exercise my right to remain silent.

[WhiteOleander]

Without POA, how can I discuss anything about a client's tax return with anyone?

[JohnH]

Good question. I'm sure they will have a way to deal with it. Maybe IRS will just suspend your PTIN until you get the POA from the anonymous complainer.