Most tax documents are required to be sent by January 31st of each year. As you start to compile your tax documents, consider these tips before hiring a tax preparer.
It's been a few months now since we've updated you on the status of efforts by the IRS to impose a more comprehensive regulatory framework on professional tax preparers. As we explained in our February 28 post, the IRS has had to backtrack on these efforts.
The IRS comes out every year with a list of tax schemes it seeks to warn people about. It goes by the rather melodramatic name of "the dirty dozen." But it is instructive to review which topics the agency chooses to include. One of them is what the IRS calls "return preparer fraud."
Many taxpayers depend to a great degree on their tax preparers. There are many reasons for this, of course. People are busy. The tax code is complex. Often, it just makes sense to have a tax professional take care of preparing and filing the return.
It's been over a month now since a federal judge ruled that the IRS had exceeded its statutory authority in its proposed new regulatory framework for professional tax preparers. As we discussed in our January 30 post, California's state-level regulation of preparers remains in place despite the ruling.
The IRS has been progressively tightening its regulation of professional tax preparers. In this blog, we've been monitoring the roll out of such new requirements as competency testing and continuing education for tax preparers.
The IRS is tightening its regulation of tax return preparers. The new requirements are being phased in, but will start with registration.
A few prior blog posts have warned taxpayers to protect their identities and to beware of unscrupulous return preparers promising unrealistic refunds this tax season. But a story from Southern California involves a tax preparer facing charges far afield from anything we have discussed up to this point.
Many Orange County taxpayers may be anticipating a refund from the IRS this spring. Californians use their refunds for any number of things, including home improvement, paying down debts or making the big purchase they have had their eyes on for a while. Unfortunately, scam artists also look forward to tax season because they hope to defraud honest people out of their hard-earned tax refund.
The deadline to file taxes is now less than two months away. This may be a source of anxiety and hand-wringing for some Orange County residents, who dislike gathering the necessary documentation and worry about the possibility of an audit. Others may look forward to filing their returns because they eagerly expect a plump refund check. The IRS, however, has issued a cautionary message to people in both groups.