Form 1098-T setback

[FEDUKE404]

Just when I thought we were making some headway on the potential usefulness of a Form 1098-T (institutions must start reporting amounts received on the 2016 tax documents), this jewel (excerpted from a current Kiplinger newsletter) appears:

"IRS had said it wouldn’t penalize those who report amounts billed on 2016 1098-Ts filed in early 2017. It’s now granting the same easing for 2017 1098-Ts filed in 2018."

So much for progress, I guess. . .

FE

[Jiggers]

Just like the insurance companies and the requirement to get 1095's out by January 31. They had years to get ready for that, and just didn't and got an extension to March 31, 2016 when we were working on 2015 returns last year.

Why are we tax return preparers always getting dumped on?

Especially with the due diligence requirements for EIC, CTC, and AOC this coming tax season. We get the penalty and get no waiver for not dotting the "i" or crossing the "t" automatically in every single case, as we are guilty until proven innocent!

And no help from out professional organizations?

[New York Enrolled Agent]

And no help from out professional organizations?

Which professional organizations do you belong to?

[MDEA]

1098

The only tax prepare rs that I know that have been audited do a large number of EITC returns. In the range of over 50%. In talking to them they did minimal effort to stop fraud. Also the time spent on each individual return was under 15 minutes the agents felt was not sufficient to do due diligence. The practice I own now was audited three times when it was $50 fine. We were fined all three times based on the above parameters. I have not been audited in five years. I lost half the EITC returns we take a minimum of 30 minutes to a return we copy all birth certificates and social security cards plus ID. I have spoken to two people that were audited last year high EITC number of returns and all returns were filed under one PTIN. If you check the returns done on a Saturday the prepare r spent under 5 minutes a return because all were in one name. That is who thy after not one of us that makes a single mistake. There must be a pattern.

[Rapid Robert]

battle of lobbyists?

I too was very disappointed at IRS caving in on 1098-T for second year in a row.

I don't want to get in the middle of an argument about tax professional organizations (I do belong to one), but I wonder realistically what could AICPA, NAEA, NATP, or any of the others have done? Was this penalty waiver put out for public comment in advance? How could the organizations have even begun to address it when it's already a fait accompli? Besides, the higher education institutions, with their many billions of tax-exempt assets, surely can afford lobbyists who could run circles around the small-budgeted efforts of our professional organizations, with one foot frog-tied to their leg.