IRS barred from imposing competency exam

[tetspa]

The problem is not mom and pop independents...the problem is the "preparers" working out of BBQ restaurants and barber shops that use turbo tax and the multiple-account refund spread options to do anything they want on a return, route as much of the refund as they want to their own account, and the return is filed as "self-prepared". Until the IRS mandates that people using turbo tax and such like to physically go to an "authorized" location to show id, and show proof that they in fact own all the accounts they have selected to route the refunds to, fraudulent preparers will continue to practice their trade.

[kcjenkins]

That would certainly cut down on the fraud, but would also add a lot of inconvenience to the DIY t/p. Why the heck can't the IRS use the info they already have access to, to cut out the obvious abuses? Like have their computers flag any bank account that has over 4 different t/p's refunds go into it? And flag any address that has over ten taxpayer's filing out of it? Such a simple step would make it easy for the IRS to then investigate those bank accounts and addresses, which would quickly let them hone in on the abusers. And do it before the season gets very far along, closing down the worst refund mills quickly.

[OldJack]

The real solution is to do away with personal federal income tax and put tax preparers out of business. Why should citizens have to have hire someone else to prepare and declare their income?

[BulldogTom]

Congress could require the registration of all purchases, including SS#, of all self prep software before activating the software.

Tom

Hollister, CA

[kcjenkins]

Tom, Tom, Tom! Don't take the position of assuming everyone is a criminal unless they prove otherwise, first. That is not how our legal system is supposed to work.

[BulldogTom]

I am just saying that if you want to prevent fraudulent preparers from accessing the IRS e-file portal, make all software that can access the portal required to be registered as either a professional (PTIN required) or an individual (SS# required, no duplicates, only one submission from that license of the software). It would not cost much to implement, and the Turbo Taxes of the world should love the idea that their software cannot be pirated.

Besides, I come from California, where every person is guilty of purchasing items on the internet and not paying sales tax according to the FTB. I have been conditioned to "know" that all my clients are trying to steal EIC from the government because the IRS tells me so. So why would I not assume that the majority of underground preparer returns are not coming from a penciled in copy of the forms (remember package X that we had to have to start the tax season?).

Face it, the software and the access to the fast lane (e-file) for refunds is what is fueling the fraud at the low end of the taxable income spectrum. It is only one of many places where "liberties" are being taken with the tax code. But if Congress really wanted to end this social welfare cheating scandal, they could in a heartbeat.

Tom

Hollister, CA

[Edward]

Ya know, alot of these ghost preparers that don't sign returns don't even buy software - They go on-to internet free file while the client provides all necessary data to the person doing the return. They then run off a copy for the client, efile the return, charge the client a substantial fee of which they pocket the money and never report it. There's no trail so the preparer gets a free ride. Last year I talked with a client that went to one of these types. I had also thought they would purchase Turbo Tax or some other software, but no sir - they'eve got a new trick as I've described.

[David1980]

Worst case, were I a fraudulent preparer I'd just tell people to buy a copy of Turbotax before seeing me. "I'll do your taxes, you provide the Turbotax" sort of arrangement.

make all software that can access the portal required to be registered as either a professional (PTIN required) or an individual (SS# required, no duplicates, only one submission from that license of the software).

[Guest Taxed]

I keep the recent IRS enforcement news against Tax preparers from our general area in a file and when I feel that a client may be shopping around for a "cheaper" deal, I send or show it to them. You got to show the cases where the tax preparer took off with the money and the victim's identity was sold to crooks in Russia! You can be penny wise and pound foolish!

I think most of our clients (at least mine) feel that I add some value to their tax preparation that is why they return. But do do have those "referrals", and they are basically shopping for a price. I stopped giving out quotes until I meet them face to face or they send me their prior year's return and fill the organizer for the current year to get a quote.

If you think about it any crook could start an online free (or next to nothing) web portal to do taxes and steal all the details for identity theft