by Fresh Start Tax | Mar 25, 2019 | Tax Help
If you are a tax preparer and IRS is breathing down your neck call us today to hear the truth about what the next steps should be.
We are specialized tax experts for all IRS matters and problems. We are former IRS agents managers and teaching instructors.
We are A+ rated by the Better Business Bureau and have been in practice since 1982. We are true tax experts for any preparer undergoing an IRS audit for due diligence.
The Internal Revenue Service has set up special IRS audit groups to audit tax preparers for due diligence compliance issues.
The Internal Revenue Service over the years have found out the majority of refunds that have been fraudulently given out have come from a group of tax preparers who do not have the wherewithal to understand the importance of their clients finally correct tax returns.
IRS’s found billions of dollars in fraudulent refunds have been given out because of this tax preparer base and Congress is mandated them to do something about it.
Special-teams of IRS auditors have been equipped to review tax preparers for different compliance issues.
Make sure you get expert representation or you will wind up possibly out of business the possibility of criminal charges or paying hefty fines and penalties.
Call us today for free initial tax consultation and get full representation so you’ll never have to speak to the Internal Revenue Service.
Do not be a victim of thousands and thousands of dollars in penalties and interest.
We are nationwide tax firm comprising of CPAs, former IRS agents, managers and teaching instructors.
We understand all the methodologies and everything that the Internal Revenue Service will throw at you during a tax audit.
We have represented thousands of clients and can help you during an IRS tax audit
IRS Facts:
People who come to you, a tax return preparer, expect you to know the tax law and prepare an accurate return.
Further, if you are paid to prepare returns claiming the earned income tax credit (EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the credit for other dependents (ODC), the American opportunity tax credit (AOTC) or the head of household (HOH) filing status, you must meet specific due diligence requirements.
There are consequences of not meeting your due diligence requirements for you, for your client, and if you are an employee, your employer.
Incorrect Refundable Credits and Head of Household Filing Status Returns Affect Your Clients, You and Your Employer
If we examine your client’s return and deny all or a part of the EITC, the CTC, the AOTC, or HOH filing status, your client:
◦ must pay back any amount in error with interest;
◦ may be subject to the 20 percent accuracy-related penalty and the 75 percent fraud penalty
◦ may need to file Form 8862, Information To Claim Certain Refundable Credits After
Disallowance;
◦ may be banned from claiming one or more of the credits for the next two years if we find the error is because of reckless or intentional disregard of the rules;
◦ may be banned from claiming one or more of the credits for the next ten years if we find the error is because of fraud.
If we examine the EITC, CTC, AOTC or HOH filing status claims you prepared and we find you did not meet all four due diligence requirements, the consequences for you are:
• a $500* penalty (indexed for inflation) for each failure to comply with your due diligence requirements (reference: IRC section 6695(g) and (h))
• A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an unreasonable position (reference: IRC section 6694(a))
• A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your willful, reckless or intentional disregard of rules or regulations
IRS can also penalize an employer or employing firm if an employee fails to comply with the due diligence requirements.
There are specific circumstances when an employer is subject to the due diligence penalty (reference: Treasury Regulations 1.6695.2(c)).
* Indexed for inflation, the penalty per failure for returns prepared after 2018 is $520 for each credit or HOH filing status claimed on a return.
This could mean up to four due diligence penalties per return when the return claims for the EITC, the CTC, the AOTC and HOH filing status.
For a tax tax return prepared after 2018, the penalty can be $2,080.
If you receive a return-related penalty, you can also face:
• Suspension or expulsion of you or your firm from IRS e-file
• Disciplinary action by the IRS Office of Professional Responsibility
• Criminal penalties for filing fraudulent returns
• Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare.
Call us today for a free initial tax consultation and be represented by true IRS tax experts. We are the affordable choice. You will never have to speak to Internal Revenue Service.
Are You a Tax Preparer Faced With IRS Compliance Audit * former irs agent expert tax help
by Fresh Start Tax | Mar 25, 2019 | Tax Help
We are specialized tax experts for all IRS matters and problems. We are former IRS agents managers and .teaching instructors.
We are A+ rated by the Better Business Bureau and have been in practice since 1982. We are true tax experts for any preparer undergoing an IRS audit for due diligence.
The Internal Revenue Service has set up special IRS audit groups to audit tax preparers for due diligence compliance issues.
The Internal Revenue Service over the years have found out the majority of refunds that have been fraudulently given out have come from a group of tax preparers who do not have the wherewithal to understand the importance of their clients finally correct tax returns.
IRS’s found billions of dollars in fraudulent refunds have been given out because of this tax preparer base and Congress is mandated them to do something about it.
Special-teams of IRS auditors have been equipped to review tax preparers for different compliance issues.
Make sure you get expert representation or you will wind up possibly out of business the possibility of criminal charges or paying hefty fines and penalties.
Call us today for free initial tax consultation and get full representation so you’ll never have to speak to the Internal Revenue Service.
Do not be a victim of thousands and thousands of dollars in penalties and interest.
We are nationwide tax firm comprising of CPAs, former IRS agents, managers and teaching instructors.
We understand all the methodologies and everything that the Internal Revenue Service will throw at you during a tax audit.
We have represented thousands of clients and can help you during an IRS tax audit
Facts:
People who come to you, a tax return preparer, expect you to know the tax law and prepare an accurate return.
Further, if you are paid to prepare returns claiming the earned income tax credit (EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the credit for other dependents (ODC), the American opportunity tax credit (AOTC) or the head of household (HOH) filing status, you must meet specific due diligence requirements.
There are consequences of not meeting your due diligence requirements for you, for your client, and if you are an employee, your employer.
Incorrect Refundable Credits and Head of Household Filing Status Returns Affect Your Clients, You and Your Employer
If we examine your client’s return and deny all or a part of the EITC, the CTC, the AOTC, or HOH filing status, your client:
◦ must pay back any amount in error with interest;
◦ may be subject to the 20 percent accuracy-related penalty and the 75 percent fraud penalty
◦ may need to file Form 8862, Information To Claim Certain Refundable Credits After
Disallowance;
◦ may be banned from claiming one or more of the credits for the next two years if we find the error is because of reckless or intentional disregard of the rules;
◦ may be banned from claiming one or more of the credits for the next ten years if we find the error is because of fraud.
If we examine the EITC, CTC, AOTC or HOH filing status claims you prepared and we find you did not meet all four due diligence requirements, the consequences for you are:
• a $500* penalty (indexed for inflation) for each failure to comply with your due diligence requirements (reference: IRC section 6695(g) and (h))
• A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an unreasonable position (reference: IRC section 6694(a))
• A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your willful, reckless or intentional disregard of rules or regulations
IRS can also penalize an employer or employing firm if an employee fails to comply with the due diligence requirements.
There are specific circumstances when an employer is subject to the due diligence penalty (reference: Treasury Regulations 1.6695.2(c)).
* Indexed for inflation, the penalty per failure for returns prepared after 2018 is $520 for each credit or HOH filing status claimed on a return.
This could mean up to four due diligence penalties per return when the return claims for the EITC, the CTC, the AOTC and HOH filing status.
For a tax tax return prepared after 2018, the penalty can be $2,080.
If you receive a return-related penalty, you can also face:
• Suspension or expulsion of you or your firm from IRS e-file
• Disciplinary action by the IRS Office of Professional Responsibility
• Criminal penalties for filing fraudulent returns
• Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare.
Call us today for a free initial tax consultation and be represented by true IRS tax experts. We are the affordable choice. You will never have to speak to Internal Revenue Service.
Tax Preparer Audits + Return Preparer Investigations Due Diligence IRS Audits * former irs agent help + Jacksonville, Orlando, Tallahassee, Tampa
by Fresh Start Tax | Mar 25, 2019 | Tax Help
The Internal Revenue Service has set up special IRS audit groups to audit tax preparers for due diligence compliance issues.
The Internal Revenue Service over the years have found out the majority of refunds that have been fraudulently given out have come from a group of tax preparers who do not have the wherewithal to understand the importance of their clients finally correct tax returns.
IRS’s found billions of dollars in fraudulent refunds have been given out because of this tax preparer base and Congress is mandated them to do something about it.
Special-teams of IRS auditors have been equipped to review tax preparers for different compliance issues.
Make sure you get expert representation or you will wind up possibly out of business the possibility of criminal charges or paying hefty fines and penalties.
Call us today for free initial tax consultation and get full representation so you’ll never have to speak to the Internal Revenue Service.
Do not be a victim of thousands and thousands of dollars in penalties and interest.
We are nationwide tax firm comprising of CPAs, former IRS agents, managers and teaching instructors.
We understand all the methodologies and everything that the Internal Revenue Service will throw at you during a tax audit. We have represented thousands of clients and can help you during an IRS tax audit
Facts:
People who come to you, a tax return preparer, expect you to know the tax law and prepare an accurate return.
Further, if you are paid to prepare returns claiming the earned income tax credit (EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the credit for other dependents (ODC), the American opportunity tax credit (AOTC) or the head of household (HOH) filing status, you must meet specific due diligence requirements.
There are consequences of not meeting your due diligence requirements for you, for your client, and if you are an employee, your employer.
Incorrect Refundable Credits and Head of Household Filing Status Returns Affect Your Clients, You and Your Employer
If we examine your client’s return and deny all or a part of the EITC, the CTC, the AOTC, or HOH filing status, your client:
◦ must pay back any amount in error with interest;
◦ may be subject to the 20 percent accuracy-related penalty and the 75 percent fraud penalty
◦ may need to file Form 8862, Information To Claim Certain Refundable Credits After Disallowance;
◦ may be banned from claiming one or more of the credits for the next two years if we find the error is because of reckless or intentional disregard of the rules;
◦ may be banned from claiming one or more of the credits for the next ten years if we find the error is because of fraud.
If we examine the EITC, CTC, AOTC or HOH filing status claims you prepared and we find you did not meet all four due diligence requirements, the consequences for you are:
• a $500* penalty (indexed for inflation) for each failure to comply with your due diligence requirements (reference: IRC section 6695(g) and (h))
• A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an unreasonable position (reference: IRC section 6694(a))
• A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your willful, reckless or intentional disregard of rules or regulations
IRS can also penalize an employer or employing firm if an employee fails to comply with the due diligence requirements.
There are specific circumstances when an employer is subject to the due diligence penalty (reference: Treasury Regulations 1.6695.2(c)). See our Due Diligence FAQs for the circumstances and ways an employer can prevent penalties.
* Indexed for inflation, the penalty per failure for returns prepared after 2018 is $520 for each credit or HOH filing status claimed on a return.
This could mean up to four due diligence penalties per return when the return claims for the EITC, the CTC, the AOTC and HOH filing status.
For a tax tax return prepared after 2018, the penalty can be $2,080.
If you receive a return-related penalty, you can also face:
• Suspension or expulsion of you or your firm from IRS e-file
• Disciplinary action by the IRS Office of Professional Responsibility
• Criminal penalties for filing fraudulent returns
• Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare.
Call us today for a free initial tax consultation and be represented by true IRS tax experts. We are the affordable choice. You will never have to speak to Internal Revenue Service.
by Fresh Start Tax | Mar 25, 2019 | Tax Help
The Internal Revenue Service has set up special IRS audit groups to audit tax preparers for compliance issues.
The Internal Revenue Service over the years have found out the majority of refunds that have been fraudulently given out have come from a group of tax preparers who do not have the wherewithal to understand the importance of their clients finally correct tax returns.
IRS’s found billions of dollars in fraudulent refunds have been given out because of this tax preparer base and Congress is mandated them to do something about it.
Special-teams of IRS auditors have been equipped to review tax preparers for different compliance issues.
Make sure you get expert representation or you will wind up possibly out of business the possibility of criminal charges or paying hefty fines and penalties.
Call us today for free initial tax consultation and get full representation so you’ll never have to speak to the Internal Revenue Service.
We are nationwide tax firm comprising of CPAs, former IRS agents, managers and teaching instructors.
We understand all the methodologies and everything that the Internal Revenue Service will throw at you during a tax audit. We have represented thousands of clients and can help you during an IRS tax audit
Facts:
People who come to you, a tax return preparer, expect you to know the tax law and prepare an accurate return.
Further, if you are paid to prepare returns claiming the earned income tax credit (EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the credit for other dependents (ODC), the American opportunity tax credit (AOTC) or the head of household (HOH) filing status, you must meet specific due diligence requirements. Refer to our Refundable Credit Due Diligence and Head of Household Law and Regulation page for more information on the requirements.
There are consequences of not meeting your due diligence requirements for you, for your client, and if you are an employee, your employer.
Incorrect Refundable Credits and Head of Household Filing Status Returns Affect Your Clients, You and Your Employer
If we examine your client’s return and deny all or a part of the EITC, the CTC, the AOTC, or HOH filing status, your client:
◦ must pay back any amount in error with interest;
◦ may be subject to the 20 percent accuracy-related penalty and the 75 percent fraud penalty
◦ may need to file Form 8862, Information To Claim Certain Refundable Credits After Disallowance;
◦ may be banned from claiming one or more of the credits for the next two years if we find the error is because of reckless or intentional disregard of the rules;
◦ may be banned from claiming one or more of the credits for the next ten years if we find the error is because of fraud.
If we examine the EITC, CTC, AOTC or HOH filing status claims you prepared and we find you did not meet all four due diligence requirements, the consequences for you are:
• a $500* penalty (indexed for inflation) for each failure to comply with your due diligence requirements (reference: IRC section 6695(g) and (h))
• A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an unreasonable position (reference: IRC section 6694(a))
• A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your willful, reckless or intentional disregard of rules or regulations
IRS can also penalize an employer or employing firm if an employee fails to comply with the due diligence requirements.
There are specific circumstances when an employer is subject to the due diligence penalty (reference: Treasury Regulations 1.6695.2(c)). See our Due Diligence FAQs for the circumstances and ways an employer can prevent penalties.
* Indexed for inflation, the penalty per failure for returns prepared after 2018 is $520 for each credit or HOH filing status claimed on a return.
This could mean up to four due diligence penalties per return when the return claims for the EITC, the CTC, the AOTC and HOH filing status.
For a tax tax return prepared after 2018, the penalty can be $2,080.
If you receive a return-related penalty, you can also face:
• Suspension or expulsion of you or your firm from IRS e-file
• Disciplinary action by the IRS Office of Professional Responsibility
• Criminal penalties for filing fraudulent returns
• Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare.
Call us today for a free initial tax consultation and be represented by true IRS tax experts. We are the affordable choice. You will never have to speak to Internal Revenue Service.
by Fresh Start Tax | Mar 25, 2019 | Tax Help
If the IRS has contacted you by mail or in person and you need expert representation because they are looking into your tax preparation, call us today for a free initial tax consultation.
We are true experts for tax preparer tax audits by the Internal Revenue Service.
We the affordable tax experts.
Your nationwide tax from that specializes in any IRS tax audit especially those for tax preparers who are having compliance issues.
As former IRS agents, we know exactly how the IRS audits tax preparers.
The IRS is on the warpath and they have set up special groups to go after small tax companies who they have flagged for tax audits. IRS is finding the tax preparers that have smaller offices the main culprits in they’re taking a closer look because many preparers are taking opportunities that do not comply with tax law.
There are multiple reasons IRS has pulled your company for a tax audit.
As a former IRS agent do not go in this unrepresented. We have over 200 years professional tax experience, over 100 years of direct IRS work experience in the local, district, and the regional tax office the entire Internal Revenue Service.
We are composed of CPAs, former revenue agents, formal revenue officers, former supervisors and managers.
We know all the methodologies to help you through your tax audit and minimize any potential problems or penalties that you may have.
Why Have a Preparer Compliance Program?
We estimate around 24 percent of all EITC claims have some type of mistake which cost the government roughly $16 billion in 2017. We are completing a study for the ACTC and AOTC error rates and will have that information soon.
Some errors are caused by misinterpreting the law; some because the preparer accepted client-provided information at face value and others are outright fraud. You, as part of the tax preparation community, are crucial in stemming these errors because paid preparers complete the majority of refundable credit claims.
We know most paid preparers practice due diligence and prepare accurate refundable credit claims. But, we developed this preparer compliance program to ensure you compete on a level playing field.
Where Do We Find Most Errors?
About 60 percent of EITC errors fall into three key categories:
• claiming a child who does not meet the relationship or residency tests,
• over-or under-reporting income or business expenses to maximize the credit, and
• filing as single or head of household when legally married.
The most common CTC/ACTC errors are:
• claiming the CTC/ACTC for a child who is over 16 years old at the end of the tax year,
• claiming the CTC/ACTC for a child who doesn’t meet the dependent qualifying child requirements, and
• claiming the CTC/ACTC for a child who was not a U.S. citizen, U.S. national or a U.S. resident.
The most common AOTC errors are:
• claiming AOTC for a student who didn’t attend an eligible educational institution,
• claiming AOTC for a student who didn’t pay qualifying college expenses, and
• claiming AOTC for a student for too many years.
What are the Paid Preparer Compliance Treatments?
Preparers filing returns claiming questionable credits may receive any of the tiered treatments listed below:
• Reaching Out to Preparers
• Knock and Talk Visits
• Auditing for Due Diligence Compliance
• Barring Non-Compliant EITC Preparers from Completing Tax Returns
• Additional Forceful Actions Taken Against Return Preparers Filing False Refundable
Credit Claims
The IRS can assess a $500* (indexed for inflation) penalty per return to preparers who do not submit the Form 8867, Paid Preparers Due Diligence Checklist, with all EITC, CTC/ACTC and AOTC claims.
The penalty for returns filed beginning in 2019 is $520.
IRS Tax Audit + Tax Preparer Compliance Experts * former irs agents experts + NATIONWIDE Experts
