Tax Services

In her recently released mid-year report, National Taxpayer Advocate Nina E. Olson criticized the IRS treatment of taxpayers who were victims of tax preparer refund fraud. Though not as widespread of an issue as the problem of tax-related identity theft, Olson stated that nowhere has the IRS failed to abide by the Taxpayer Bill of Rights more than with preparer refund fraud.

Olson has mentioned the issue three times in her annual reports, has issued two proposed Taxpayer Advocate Directives, two final Taxpayer Advocate Directives, and elevated 25 Taxpayer Assistance Orders to IRS commissioners. In addition, the IRS Office of Chief Counsel has issued opinions or other guidance that states that the IRS is authorized to replace the refunds that were taken as a result of tax preparer fraud. On March 14, IRS Commissioner John A. Koskinen stated that the IRS will issue replacement refunds to victims who have filed police reports and have other documents substantiating their claims. However, no refunds have been issued and some individuals have been waiting since 2008.

The Taxpayer Advocate’s report also discussed the issue of minimum tax preparer standards. In 2002, it was requested that Congress authorize the IRS to establish minimum standards. As Congress never took up the issue, in 2010, the IRS began implementing standards on its own. Olson reiterated that standards that included preparer registration would increase accountability, as well as provide for a one-time entrance exam and continuing education opportunities for preparers. In 2015, the IRS plans to begin encouraging preparers to take continuing education courses. Olson continues to push for a minimum competency exam.

If you’re needing reliable tax services from someone who is experienced, well trained, and trustworthy, contact A&B Accounting and Business Solutions. As Registered Tax Return Preparers, we prepare tax returns for individuals, corporations, S corporations, partnerships, limited liability companies and sole proprietorships. For more information, contact us.