Tax preparers Feed

Image courtesy SimpsonsWorld via Giphy.com The Tuesday after Presidents Day generally is the busiest day of the year for calls to the Internal Revenue Service's toll-free help line. That also means that callers find themselves on hold. Such waiting, compounded by being forced to listen to tunes that would never ever make your Spotify playlist, is common throughout the filing season. That then leads to taxpayer frustration, which often prompts filers to try different avenues to get answers to their questions. Don't, however, just randomly call any IRS phone number seeking tax help, cautions the IRS. And definitely don't call... Read more →


Same old, same old. That's the message the Internal Revenue Service got today when the Trump Administration released its fiscal year 2019 budget. The IRS' base budget amount is about the same as prior years and some old tax enforcement ideas are proposed again. Office of Management and Budget Director Mick Mulvaney discussing the Trump Administration budget last year. For release of the 2019 fiscal year budget, Mulvaney decided to stay off camera "because it's really boring." You can decide if he was right by listening to his remarks yourself via C-SPAN. It's no secret that the Internal Revenue Service... Read more →


Thirty days hath September, April, June, and November. All the rest have 31, Except for February, Which has 28 to put to use doing your taxes. OK, I took some liberties with the traditional poem. But it is true that despite its reduced days, February still provides plenty of time to make some key tax moves. Here, since it is a short month, are three. Collect your tax statements: Most of the tax statements that you need to fill out your Form 1040 should be arriving by early this month. They were supposed to be to you or at least... Read more →


Free tax-preparation and filing help, like that shown here at a Rutherford Country, Tennessee, VITA office, is available at thousands of sites across the country. You need help with your taxes but you can't afford a professional. A couple of community-based, Internal Revenue Service endorsed and, best of all, free tax filing help options may just be the answer. If you earn around $54,000 or less, have a disability, are elderly or speak limited English, you may qualify for free tax help from IRS-certified volunteers at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) locations nationwide.... Read more →


Welcome 2018! Yes, I know we're well into day four of this brand spanking New Year. But we all get a pass on the first day to recover from our New Year Eve parties. And days two and three were consumed by looking back at what was accomplished tax-wise in 2017, looking ahead at what we can expect from taxes in 2018, chatting with fellow tax folk (OK, maybe that was just me) and dealing with scary winter weather. Bundle up, all my friends along the East Coast! Now, though, it's time to get down to tax business. Time for... Read more →


I spent most of today with my Mom, running errands with her and chauffeuring her to a couple of medical appointments. (She's fine. It was routine stuff. Thanks for asking.) But I did make time to hook up with my peeps, all the Twittering tax experts, accountants, writers, preparers, attorneys, Enrolled Agents and general tax geeks who set aside an hour at the beginning of each month to talk taxes. Specifically, we were part of the first #TaxBuzzChat of 2018, coordinated and moderated by, as the name (and my headline) indicates, TaxBuzz.com. As you guessed — OK, noticed in the... Read more →


Tax pros are feeling all "Mean Girls" Gretchen Wieners right now thanks to the new tax law. (via Giphy.com) When people ask what I do, I say I'm the most popular person in the world until April 16. After a few seconds of quizzical looks, I explain. I write about taxes. Yep, everyone wants to be my best friend until they finish their tax returns. After the April filing deadline, though, it's "please, Kay, no more tax talk!" But the Republican tax bill, originally known as the Tax Cuts and Jobs Act and set to take effect on Jan. 1,... Read more →


CBS/NFL clip via Giphy.com Any sports fan will tell you that penalties often ruin not only their teams' chances of winning, but also make the game itself worse. Taxes certainly aren't a game, but penalties in this part of our financial lives also are frustrating. Worse, they can be costly, to both taxpayers and the tax professionals they hire for filing help. Some tax penalties are set by law. Others are adjusted each year because of inflation. Penalties add more to tax bills: Paying taxes is bad enough. Paying a penalty for not filing on time makes that worse. Recent... Read more →


Tax identity thieves apparently are paying close attention to official security moves that the Internal Revenue Service is making and using that information to create new schemes. The latest effort by crooks to steal taxpayer personal data comes in the form of a new phishing scam designed to steal tax professionals' passwords and data. e-Services is hook for latest ID theft effort: In an email alert sent this (Oct. 11) afternoon to tax pros, the IRS warned that this latest scheme tries to trick them into signing a new e-Services user agreement. The phishing email claims to be from "e-Services... Read more →


"Dear IRS, …" — If you have a question about how a tax law or regulation affects your particular set of circumstances, you can ask, in writing, for the Internal Revenue Service to weigh in. But be prepared to pay for the advice and, effective Aug. 15, pay electronically. Taxes are complex. That’s why it’s often wise to get professional help. In some cases, however, even tax pros need some guidance. This is particularly true when taxpayer circumstances are such that the individuals and their advisers feel the need for further interpretation as to how tax laws or administrative rules... Read more →


Every computer user is familiar with the constant updates to software. So are identity thieves. And now these crooks are targeting tax professionals in a new phishing scam designed to steal usernames and passwords. The Internal Revenue Service and its state and tax industry Security Summit partners say that this latest impersonation scheme variant is a sophisticated scam designed to get information that can be used to file false tax returns and collect fraudulent tax refunds. It's the latest in a series of scams this summer that have targeted professional tax preparers. Software upgrade hook: This is the time of... Read more →


Alfred Hitchcock nailed it in his 1955 cat burglar-turned-romance starring Grace Kelly and Gary Grant. The pair teamed up, with Grant's character using his expertise as a former jewel thief, to catch a new criminal in the wealthy playground of Monte Carlo, Monaco. (Click film screenshot to watch the movie trailer on YouTube.) The Internal Revenue Service apparently is taking a hint from a Hollywood classic. It's thinking like identity thieves to catch identity thieves. That was among the messages from IRS Commissioner John Koskinen in July 25 media teleconference. Cybercriminals are showing increasing savvy and tax expertise, particularly in... Read more →


Happy World Emoji Day! It's held on July 17 each year as a way to promote the use of emojis — like we need to do that! — and, according to Emojipedia (really!), spread the enjoyment that the colorful icons bring. The enjoyment goal got me thinking of how emojis might make one of our worst tax tasks more pleasant. I'm talking, of course, about our annual filing of returns. Most of us already use tax software. Surely it wouldn't be that difficult to incorporate the option of adding emojis to the lines we fill electronically complete. Dressing up your... Read more →


This post was updated Tuesday, July 25, 2017. Paid tax return preparers must sign their clients' 1040 forms and include their IRS-issued professional ID number. The IRS lost a court case to charge a fee for the identifiers, known as PTINs, but is seeking a stay of that order pending possible appeal of the case. If you're a tax preparer who's hoping to get back fee you paid for your IRS-issued special identification number, you could be waiting a bit longer. The Internal Revenue Service on July 24 formally asked the U.S. District Court for the District of Columbia to... Read more →


Feeling left out because tax scammers have been focusing lately on tax preparers? Don't. Crooks likely will be calling or sending you an email soon enough. The Internal Revenue Service says that everyone, individual taxpayers and tax pros alike, are potential victims of identity theft schemes as we head into what used to be a slower time for taxes. "We continue to urge people to watch out for new and evolving schemes this summer," IRS Commissioner John Koskinen said in an alert issued today, June 26. "Many of these are variations of a theme, involving fictitious tax bills and demands... Read more →


Based on the fast and furious pace of tax scams this month, you'd think it was high tax season instead of summer. For the second time in just more than a week, the Internal Revenue Service has issued a new tax scam alert. (In case you missed it, the pervasive tax telephone scam was recently tweaked.) This latest scam warning is for tax professionals, who are receiving phishing emails purportedly from a tax software education provider. The fake communication asks for the tax preparers' help in repairing a failure in the message sender's sham database. To that fake end, the... Read more →


After a brief hiatus, the Internal Revenue Service has reinstated its online tool where professional tax preparers can obtain the official identification numbers required to file returns. On June 1, the United States District Court for the District of Columbia issued a mixed ruling in a class action lawsuit against the IRS, Adam Steele, et al. v. United States of America (Case No. 1:14-cv-01523-RCL). The federal judges said that while ruled that while the IRS has the authority to require tax pros to get Preparer Tax Identification Numbers, or PTINs, the tax agency cannot charge for the ID numbers. The... Read more →


Many professional tax preparers say that giving the Internal Revenue Service added regulatory ability over their jobs isn't warranted. The tax agency and Trump Administration disagree. (Photo by Sebastiaan ter Burg via Flickr CC) The Trump Administration has continued the current trend of cutting the Internal Revenue Service's annual operating funds, but a provision in the new White House's fiscal year 2018 budget also could solve a new IRS problem. On June 1, the Internal Revenue Service got the bad news from the United States District Court for the District of Columbia that the tax agency can't collect fees from... Read more →


Another online Internal Revenue Service tool has been taken offline, but this time it's not security related. Instead, the IRS has shut down the online method by which tax professionals can apply for a Preparer Tax Identification Number, or PTIN, in the wake of a court ruling against the federal tax agency. When you hire a tax pro to help you file your annual return, that paid preparer has to include his or her PTIN on your 1040. But a recent court ruling says the IRS no longer can charge preparers for this special identifying number. Since the fall of... Read more →


Happy Mother's Day! What a perfect day to talk about tax audits. You don't see the connection? Then you missed the season finale last week of the CBS show "Mom." I'm not really a fan, but it was on in the background as we were fixing dinner. Scene from the May 11 season finale of CBS sitcom "Mom," where the characters portrayed by Anna Faris and Allison Janney consult an attorney, played by Leonard Roberts, about some tax trouble. (Photo courtesy CBS) But as I was chopping veggies I heard "the IRS put a lien on my account." So naturally... Read more →