Tax preparers who use the TaxWorks tax preparation system can become affiliates of Deductr, an online deduction-tracking software application. Through a deal involving TaxWorks' parent company, RedGear Technologies, preparers can purchase the software at a discount and sell it to clients.

Intuit's first year of providing professional tax advice to TurboTax customers was a success, although not as much as the company liked. But in this week's earnings webcast, CEO Brad Smith gave no doubt that the program is likely to help his company attract tax filers now using the services of CPAs.

A federal court has permanently barred a Kansas City, Kan.-based preparer, Ahferom Goitom, from preparing federal returns for others at an Instant Tax Service store. The Justice Department has five other ongoing legal actions against the chain in Indianapolis; Las Vegas; Chicago; and Dayton, seeking to shut down the four largest franchise owners as well as trying to shutter the corporate franchiser, ITS Financial.

The Oregon Department of Revenue has demoted one employee and taken disciplinary action against three others for actions that apparently led to a $2.1 million tax refund being issued to Krystle Marie Reyes of Salem. Reyes, who received the refund on a debit card, spent about $150,000 and was been sentenced this month to 5.5 years in prison.