The Internal Revenue Service says it has identified 19 tax preparers who have applied for Preparer Tax Identification Numbers, but who did not tell the IRS that they had failed to disclose either a criminal tax conviction or their being permanently enjoined from preparing tax returns. Permanent injunctions are used by the Department of Justice to stop those who repeatedly prepare erroneous or fraudulent federal returns.
The 19 have received letters from the IRS which proposes that their PTINs be revoked and they have 20 days to respond with reasons why the action should not be taken.
The IRS says more than 700,000 tax preparers have obtained PTINs, which must be used by all paid tax preparers on returns and claims for refunds. The IRS said that it would now begin reviewing tax returns that were prepared by anyone who used an identifying number other than a PTIN, did not use any identifying number or did not sign returns. The IRS said it is also testing ways to identify returns that appear to have been professionally prepared but were not signed by a preparer.
The IRS said it is signing about 2,000 preparers a week to the PTIN program. This registration is the first step of new standards for preparers and oversight by the IRS. Starting in the fall paid preparers, excluding CPAs, Enrolled Agents and tax attorneys, must pass competency tests.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
