Added Responsibilities from IRS

[Edward]

IRS says over 726,000 active PTIN's are in affect - this equals to around $46,645,500.00 they will be receiving from us annually. What are they doing with all that cash? And when you add in the RTRP Testing fees for the first phase will bring them another 36,192.00. And add on the additional penalties we are faced with?? Now we've been given an additional workload by IRS. Take a look at a couple of the DRAFT forms for 2012:

a. Form 8867 (EIC Credit Checklist) is NOW 4 PAGES long. The 4th page has numerous items we'll have to research and add for all children claimed on the return. Kinda an expanded version of what Drake has on their EIC Software. Then

b. Form 8863 (American Opportunity & Lifetime Learning Credit). It has nearly a full page of additional work that we must add to the form.

This is only two of the revised forms - there may be more by tax time. I'm afraid the waiting rooms may get longer this year, unless we can get the clients to add the needed info on the organizers.

It certainly appears that IRS is pushing us into the audit arena as time progresses with all this additional responsibility.

It looks as tho it is possibly the result of IRS's new "Real-Time Tax System initiative they've recently started. In other words, we are going to be doing the 1099 matching in most instances thereby relieving IRS from the task.

You can look at the two (and many others) forms by going to google and puting in www.IRS.gov/draftforms

[FEDUKE404]

Draft forms for review

Here is the (draft) Form 8867: http://www.irs.gov/pub/irs-dft/f8867--dft.pdf

Seems like another good reason to refer EITC returns elsewhere!

The Form 8863 does not seem quite as troublesome: http://www.irs.gov/pub/irs-dft/f8863--dft.pdf
(I do wish they would "repair" the 1098-T rules!)

FE

[mlinderEA]

Added responsibilities

As some one who does over 1500 EITC returns I feel this a step in the right direction.We have had our own forms to ask all these questions now they are in the program.Our software (taxwise) never had it built in.I had already planed to raise prices $50.00 on all returns that have EITC on them

[JohnH]

Do you think $50 will be enough to cover the extra time, extra penalty risk, both, or neither?

[mlinderEA]

Irs added resosibilities

By adding the $50.00 that will bring the average fee on these returns to $250.00.The most it will take is 30 minutes to do the returns that still has my preparers bringing in $500 an hour.If it take some even an hour that is still $250.00 an hour.I do not think it will take that much longer we do the same things by paper now.

[FEDUKE404]

Questions for EITC not in software previously?

As some one who does over 1500 EITC returns I feel this a step in the right direction.We have had our own forms to ask all these questions now they are in the program.Our software (taxwise) never had it built in.I had already planed to raise prices $50.00 on all returns that have EITC on them

Unless I am reading your post incorrectly...

For 2011 tax year, how exactly did you efile those 1500 EITC returns without including a Form 8867 with each one?

One would think you might be at risk for receiving a "visit" from the IRS....

FE

[JohnH]

Understood. You have the time element covdered pretty well. You just have no way of covering the penalty risk in this uncertain environment. But the IRS is made up of reasonable people, so I'm sure you will have no problems with them.

[mlinderEA]

Irs responsibilities

We filed the 8867 but last years 8867 did not have the added questions for non son and daughter dependents we had to do this by paper.Drake and other software had the dependent questions in the software.This will slow us down but we will have a better record of the answers.I have had two preparers audited one cost $3100 the other $3300.Last year we turned down more than 150 prior clients because they could not provided us with the necessary paper work under the new rules.A person set up in our shopping center parking lot in a van and was doing some of the clients we would not.I think he did between 50 and 75 returns he charged $500 a return.

[luke]

wow

A person set up in our shopping center parking lot in a van and was doing some of the clients we would not.I think he did between 50 and 75 returns he charged $500 a return.

Unbelievable - too bad IRS didnt get info about the "van" preparer so they could check some of his returns?