The Internal Revenue Service is going after tax return preparers who prepared returns in 2011 but failed to comply with the new federal tax preparer registration program.

Last year, the IRS initiated the Preparer Tax Identification Registration program to oversee the tax return preparation industry and regulate the conduct of tax return preparers. The program requires all paid tax return preparers to obtain a Preparer Tax Identification Number (PTIN). Preparers will be required to sign their names and include their PTINS on the returns and refund claims they prepare.

Earlier this month, the IRS began sending letters to approximately 100,000 income tax return preparers who failed to comply with the new IRS mandate.  The IRS notices explain the program, how to register for, or renew a PTIN, and where to get assistance.

“The vast majority of federal tax return preparers complied with the rules. Obviously, some preparers did not get the word, so these letters provide additional information so they can register as soon as possible,” said IRS Commissioner Doug Shulman. “We owe it to the compliant tax preparers to make sure that everyone is on a level playing field.”

Since last fall, over 700,000 tax preparers have registered and obtained PTINs. Paid preparers who are not tax attorneys, Certified Public Accountants or Enrolled Agents are required to pass a competency exam and suitability check, and complete  15 hours of continuing education credits annually.

Some unscrupulous preparers may attempt to elude the new oversight program by not signing returns they prepare. Taxpayers should never use tax return preparers who refuse to sign returns and enter PTINs.

In an effort to identify these “ghost preparers,” the IRS later this year also will send letters to taxpayers who appear to have had assistance with their returns but lack tax return preparer signatures. The letter will inform taxpayers how to file a complaint against preparers who failed to sign returns and explain how to choose legitimate tax preparers. The goal of the letters is to protect taxpayers by ensuring that all paid federal tax return preparers are registered with the IRS, and sign tax returns they prepare and use an identifying number when required to do so.

Compliance is a central part of the new tax return preparer initiative and the letters are one step in an ongoing compliance effort to ensure tax return preparers are following the new regulations. The IRS also is working to identify tax return preparers who make repeated errors and IRS personnel have had face-to-face meetings with thousands of these tax return preparers over the past two years.

The IRS and taxpayers who use paid tax preparers will benefit from this initiative. Visit the IRS website for more info on the PTINs program.

source: irs.gov

The Internal Revenue offers tax help with it’s online tool designed to answer your tax questions. The Interactive Tax Assistant (ITA) is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions.

You have three options to get your tax questions answered using the tool. You can (1) enter your search term or tax question in the ITA Search Box (2) select the Popular Topics link or (3) select Category. Next, simply answer the questions and follow the directions to progress throughout the interview.

Be advised you will need to gather your tax information such as income amounts, taxes owed and credit you’re claiming. However, the tax assistant tool does not require sensitive personal information such as your Social Security Number.

The tax help provided by the ITA tool covers a limited number of topics. If the tool does not cover your search term or tax question, you MAY be sent to the IRS’s tax trails application or the IRS’s query results page.

More on IRS Answers Your Tax Questions Online

Did you know the IRS offers tax help to taxpayers with unresolved tax issues? The IRS’s Taxpayer Advocate Service (TAS), an independent organization within the IRS, provides assistance to taxpayers trying to resolve on-going tax problems or looking for answers to their tax questions.

To qualify for the Taxpayer Advocate Service, taxpayers must be experiencing economic harm or significant cost, haven’t resolved their tax within 30 days, haven’t had their tax issues resolved by the date promised by the IRS, or believe that an IRS procedure is not working as it should.

The Taxpayer Advocate Service is your voice at the IRS. The service is free, confidential and personalized, and tax help is available to businesses and individuals.

TAS employees are tax professionals who know how the IRS works and how to navigate it. They will listen to your tax problem, help you understand what needs to be done to resolve it, and see you through the entire process, until your tax problem is resolved.

To resolve your tax issues or just get tax help, find your local IRS taxpayer advocate online or by phone at 1-877-777-4778.

You can learn about your rights and responsibilities as a taxpayer with the IRS tax tool kit.

source: irs.gov