Tax return preparers are now at an increased risk of getting a federal tax audit. The Internal Revenue Service (IRS) recently announced it will focus on this group of taxpayers during the current fiscal year.
Why the focus on tax return preparers?
The announcement came shortly after a report by the Treasury Inspector General for Tax Administration (TIGTA). According to this federal organization, the IRS has failed to adequately hold tax return professionals accountable for their own tax obligations. Investigators with the TIGTA flag 100 of what it called the top offenders. The agency states that this group failed to file their own federal tax returns and yet filed thousands of tax returns for clients. The agency estimates that these individuals likely earned between $186,000 to $1 million in annual income.
Overall, the agency states the IRS could gain millions in focusing audit efforts on this specific segment of the taxpayer population. The TIGTA also calls on the IRS to hold tax return preparers accountable for doing their own tax returns. The group states that a failure of these professionals to file their returns ultimately undermines the integrity of the tax system.
What does this mean for tax return preparers?
Those who claim tax return preparer as their profession are wise to review their own tax returns and make sure everything is in order. Those who have failed to file their tax returns or who believe they may have made an error are wise to take proactive steps to resolve the situation. The attorneys at Goldburd McCone are experienced in this area of tax law and can provide some guidance.