Paid Tax Preparer(TPr) w/no ptin

[AZ-Tax]

One of my clients decided to go with another TPr for their 2014 tax return. Return was done incorrectly and so former client(TP) calls me up. Nicely I asked the TP why not go back to the TPr that prepared your 2014 to save money for I will need to recreate your tax return. Wait for it, the TPr does not return my (TP) multiple phone calls for over 1 month now so TP came in over the weekend. I never heard of this tax preparers firm before: "self-prepared" : ) with no address, no ptin etc. but a cover letter on letterhead with no mention of compensation paid but there was according to the TP. Now the TP was referred by her friend who to has fallen victim to this TPr by not returning his phone calls. What do you think, do I as a professional tax preparer (EA) report this?

[TAXNJ]

Paid

One of my clients decided to go with another TPr for their 2014 tax return. Return was done incorrectly and so former client(TP) calls me up. Nicely I asked the TP why not go back to the TPr that prepared your 2014 to save money for I will need to recreate your tax return. Wait for it, the TPr does not return my (TP) multiple phone calls for over 1 month now so TP came in over the weekend. I never heard of this tax preparers firm before: "self-prepared" : ) with no address, no ptin etc. but a cover letter on letterhead with no mention of compensation paid but there was according to the TP. Now the TP was referred by her friend who to has fallen victim to this TPr by not returning his phone calls. What do you think, do I as a professional tax preparer (EA) report this?

You are saying that a former client paid to get return done by a paid preparer without a PTIN and preparer name? Not clear in your post - might need to recreate it.

If you determine wrong doing there is information on IRS website for such reporting.

[JohnH]

I think there's more going on in this situation that you are being told.
The client is likely keeping important information from you.
Personally, unless there are extenuating circumstances, I'd walk away from this one.
If EIC or other credits are involved, even more reason to steer clear.

[taxea]

Was the return efiled? If so the preparer may have used Turbo Tax or a similar program. The preparer may be traceable by IRS investigators.
Does the TP have proof of payment by way of a cancelled check or receipt?

I would gather all documents (copy of return, document of payment, written statement from TP, identifying info on preparer) and send it all to IRS investigations with F3949a.

[David1980]

I would have no problem correcting the return. I would charge for the work I did - I don't amend other people's mistakes for free. I would inquire as to IRS letters received or delayed refunds. My experience with "self-prepared" paid preparers is they tend to produce big refunds and make taxpayers happy. Until the taxpayer is no longer happy - an IRS letter would make sense.

As far as reporting the preparer, I personally wouldn't. I just don't feel it's worth my time to send in reports. Perhaps if I saw more happening as a result of reports I'd change my mind. And if there was some specific preparer that was causing me a lot of problems perhaps then. But for the occasional random obviously wrong returns? I fix the return and move on.

[MDEA]

Paid Tax Preparer

This is something I run into several times a year in my one office. I have no problems correcting the problems caused by the ghost Tax Preparer and recommend that they let me review any open years. I hope they will return to me in the future. I also ask that if they know of other people this person did to give them my card and tell them the problems they are having. I have reported people in the past but I think nothing was done about it.

[FEDUKE404]

Dealing with non-preparer

Sounds like the "other preparer" was whoever was using (personal version) TurboTax or similar to prepare the return.

Whether it was efiled or a paper return, in all likelihood your client is (bottom line) the one who "filed" the return the IRS now has on file.

( You've already stated the return was signed as "self-prepared." )

I would not waste my time going after the paid person on the letterhead, although I would suggest the client try to get some resolution from that likely long-gone individual.

Since this person was a prior client, I would consider preparing current year and amending as necessary the prior. . .but I would be very aware of any potential problems and/or document the facts like crazy. Even more so if EITC is involved. If the prior client is unwilling to cooperate fully, as JohnH stated . . . I would quickly show him the door. Oh yes: Collect your expected fees up front!

Oh yes: SHOW ME the IRS letter before I even get started!!

FE

[TAXNJ]

Excellent

sounds like the "other preparer" was whoever was using (personal version) turbotax or similar to prepare the return.

Whether it was efiled or a paper return, in all likelihood your client is (bottom line) the one who "filed" the return the irs now has on file.

( you've already stated the return was signed as "self-prepared." )

i would not waste my time going after the paid person on the letterhead, although i would suggest the client try to get some resolution from that likely long-gone individual.

Since this person was a prior client, i would consider preparing current year and amending as necessary the prior. . .but i would be very aware of any potential problems and/or document the facts like crazy. Even more so if eitc is involved. If the prior client is unwilling to cooperate fully, as johnh stated . . . I would quickly show him the door. Oh yes: Collect your expected fees up front!

Oh yes: Show me the irs letter before i even get started!!

Fe

excellent reply post comments

[taxea]

I have no problem reporting a "ghost preparer". They are violating the law by accepting payment and not signing the return. These are the people that give the rest of us a bad name. If you don't want to report them. Send all the docs to me and I will without using your ID info.