The Internal Revenue Service is sending notices of proposed penalties to nearly 800 preparers who had already received a warning letter about their not submitting forms required for returns claiming the Earned Income Tax Credit. The letters are going to those received notices after they did not file Form 8867 for tax year 2011 for returns claiming the EITC, but continue to submit such returns for 2012.

A Virginia accountant, who gave an unqualified opinion about the financial statements of a bank that later collapsed, has been suspended from practice before the SEC. The agency found that CPA James Vincent Poti failed to follow up warnings from an internal auditor about a lack of financial controls – along with his own doubts - or test whether the bank had established a large enough allowance for risky loans.

Payroll preparation is one of those subjects that can produce a wide range of opinions among accounting professionals. Postulate that the service can be a good way for accountants to make money or it's not a business they should be in and you can probably get a significant number of practitioners lined up behind either position. Is the main element needed for success the right staff, software or the number of clients?