mlinderEA

There are no RALS they ended last year except for one bank who is not doing them this year.The only bank product is the client receives the money after the IRS makes a deposit.It is either direct deposited or the preparer prints a check.These people will have to wait like every one else.The pay day loan companies and any one else that loans money to low wage earners will have a field day.

THE EIC fraud that I have seen not counting schedule Care married couples each filing HOH and spliting the children or people not working selling the childs SS # to some one else.The additional info on the 8867 is aimed at the second one.I do not know of how to combat the first one when you do not know the clients except to do the return.

Spend a day in my office during the last ten days of January and you can see why the IRS has tightened up on EIC.The amount of fraud is unbelieveable.The problem is most of the kids do not live with the say people all year.My office is in a very poor area and it is a different world.

Each one of my preparers that was audited did over 150 EIC returns.In talking to the auditers all people they have audited do over 125 EIC returns.If you only do a few you have no worries.They are concentrating on people that do volumn.So the fines will be high.

My one office's business is primarily EIC I have had 3 audits of different preparers.The out come of the one 2 weeks ago is still up in the air.Each time I have had to change my procedures to make sure my preparers are doing it properly.Last year I asked 151 clients to leave that could not document their schedule CEZ earnings or that the child lived with them.I raised all returns with EIC $25.00 last year and will raise again $25.00 this year.It is much easier to do the right thing when you are in a small office much harder when you have 14 preparers during the early peak doing almost only EIC returns.

I do a lot of EITC returns the new 8867 just puts in writing what IRS has wanted for the past two tax seasons.I have had different preparers audited for 2010 and 2011 and they wanted us to document on niece's,nephews,brothers,sisters,and grand children why the parents were not claiming the dependent.This is now integrated into the 8867.

Why would you not turn in a preparer that was breaking the law?What is the difference between that or being a witness in a car crash or a robbery?

Did you turn in the person who did the return?Last year I turned in three people one person twice.The client went back to the preparer who called me and begged me not to turn her in.I told her ir was already done.She worked ror the treasury dept and was afraid she would lose her job.I never heard any thing further.If we all keep turning them in it may do some good.

I think she is talking about their small firms conference that is for both software users.It is supposed to help you run your business not use the software.

Please report back if it was worth going to.I thought about it but with air fare it seemed too exspensive.