02 Aug What Is The I.R.S. Doing For You?
The I.R.S. is trying to protect the public from the well meaning but sometimes ignorant, as well as the predatory tax form preparer. Every year I see a few 1099’s prepared by an office assistant that clearly had no idea what he or she had been asked to do. The form filled out incorrectly and maybe my client shouldn’t have been issued a 1099 form at all. All in all it makes a mess my client ends up paying me to sort out. Now this is just a simple 1099 form. Imagine if someone who had no clue was completing other tax forms? That well meaning neighbor who thinks she does a pretty snappy job on her own 1040 so why not give you a hand could be the worst thing that ever happened to you. Our office has always promoted the use of a C.P.A., Tax Attorney, or Licensed Tax Preparer. Now the IRS is requiring that those who prepare tax forms, even simple 1099’s for compensation, that are not employees of the company, or owners, be registered tax preparers and have received their P.T.I.N.(Preparers Tax Identification Number). For tax year 2010 registered tax preparers only had to register with the I.R.S. and in coming years will have to pass competency exams. Recently the I.R.S. sent letters to over 100,000 return preparers who filed returns, but failed to follow the new requirements. Who prepares your tax forms?
No Comments