Who Says We're Not Auditors?

[Edsel]

The IRS has maintained throughout Cir 1230 that we are not auditors.  After all they don't want us taking over their jobs, right?

How did we as a profession allow this to happen?  We have to answer the self-incriminating questionnaires about children?  We have to collect this type information and certify that we have it, and have interrogated taxpayers about this/that.  The statements we are forced to make actually perfect the case they can bring upon us - the taxpayer gets off scott-free.

Have there been any court cases which uphold our role as a non-auditor?

[ILLMAS]

I said these words to four new clients this year, “I do not work for the IRS nor I’m I auditing your prior year tax nor I’m the police, however I believe your tax return was prepared incorrectly (inflated Sch A items) and either you can go back to the person that prepared it or I can amended for you.  I am required by IRS rules to inform you and I cannot force you to make the correction, but you have been told.”   Then they ask, now that this year is going to be correct, do you think they’ll say something about the prior years 

[Yardley CPA]

6 hours ago, Edsel said:

How did we as a profession allow this to happen?  We have to answer the self-incriminating questionnaires about children?  We have to collect this type information and certify that we have it, and have interrogated taxpayers about this/that.  The statements we are forced to make actually perfect the case they can bring upon us - the taxpayer gets off scott-free.

Edsel...I agree with your thoughts.  If it looks like a Duck....   As long as that caveat is there though, "We are not auditors" it has to afford us some protection, I would think.  I too would be curious to know if there were any court cases concerning this topic.

[Pacun]

I don't think there is a court case now nor will it be one any time soon. Just think for a minute, we are working solo and barely make money to survive. The IRS employs roughly one thousand lawyers... how many do we employ?  Let's think as an industry as a whole, let's say that HR block hires 10 lawyers and the other big guys hire 10 lawyers each. I bet you  that as an industry "we" don't have 100 lawyers on our payroll.  Now let's think for a minute about a class action suite, what lawyer will take the case to court? No one because there is no money coming to them even if our lawyers win. So the next time when the IRS knocks on our doors, we will be happy that the IRS only found 100 returns with "issues" and the IRS will only fine us a bit more than $50K.

Why we have gotten to this place? Because:

1.- There are many crooked tax preparers and also there are many tax payers trying to get free lunch for the IRS and some of them do it for life.
2.- Those preparers don't sign the returns so there is no one to go after.
3.- We don't report those preparers, the ones that sign or don't sign the returns.
4._ When we do report them, the IRS or the government agencies take years to do something, IF ANY action derives from complaint.
5.- we are not like doctors with uniform modus operandi. Have you seen a private doctor working on Sundays... What are you doing today, which happens to be Sunday?

There are many other items to be added to the list, but it is Sunday and I wish I was a doctor.

 

[Possi]

If we are the gatekeepers to the IRfrikkinS, held to such high standards, required to question our clients under a spotlight and document it all, then we should be considered government employees.

Complete that with declaring tax season an official "combat zone" with tax free income, and housing allowance all year.

I truly do not know how we got to this place. Many IRS agents aren't in compliance on their own returns, and many owe a lot of money to the IRS. Many use that "I'm in with the IRS" line to cheat on returns. The IRS isn't policing any of them. They are using our registrations to police us.

I love what I do. But the IRS and this government drives me to drink.