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November 27th 2012 by Intuit Staff
For the third year in a row during the 2012 tax return season, the IRS sent letters and scheduled visits with thousands of tax return preparers nationwide. These annual letters and visits are part of the IRS’ ongoing compliance initiative to improve the accuracy and qualify of filed tax returns and to heighten awareness of preparer responsibility. And, while the focus of the letters and visits may change, tax practitioners can anticipate another round of letters and visits during the 2013 filing season.
During both the 2011 and 2012 tax return seasons, the IRS focused on tax return preparers who prepared a large number of individual returns with Schedules A (Itemized Deductions), C (Profit or Loss from Business) or E (Supplemental Income and Loss) in the prior year. In November 2010, the IRS sent more than 10,000 letters to selected preparers and scheduled visits with about 2,500 preparers between December 2010 and the end of April 2011. In November 2011, approximately 25,000 preparers nationwide received missives from the IRS, with about 2,100 visits scheduled through April 15, 2012.
You’ve Got Mail
According to the IRS, the purpose of the preparer letters is to heighten awareness of preparer’s responsibilities, the consequences of filing incorrect returns and tax return preparer requirements. The letters include enclosures that outline common issues preparer’s should be aware of on the targeted schedules.
Preparers are not required to respond to the IRS letters—but may want to prepare for the possibility of an in-office visit.
You’ve Got Company
Based on past experience, upwards of 2,000 preparers who receive letters can expect a visit from the IRS. An IRS agent will call selected tax return preparers in advance to schedule the date and time of the visit. The agent will then send a letter confirming the visit.