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Originally posted by Bhadhidar
Alright everybody, calm down!
Electric, I think you've "short-circuited" your fellow ATS members on this one. You should have done a bit more research on the topic before lending any credence to a biased, slanted and obviously sensationalized article.
While the IRS will consider the role of tax-software providers, human preparers are the focus of the effort to craft stricter standards, Mr. Shulman told reporters in a conference call. "In most states, anyone can charge to prepare tax returns, regardless of training, education, experience, skill, licensing or registration," he said.
The IRS announced the plan last Thursday, in conjunction with Shulman’s testimony before a House subcommittee about the IRS’s operations and proposed budget (see IRS Plans to Step Up Tax Preparer Regulation). The IRS is desperate to close the estimated $290 billion tax gap, especially as the deficit widens to astronomical levels.
Too many preparers are apparently helping their clients evade their share of taxes, or at least the IRS believes that to be the case. It’s true that the Justice Department and the IRS have found plenty of instances of tax preparers exaggerating their clients’s earned income tax credits, fuel tax credits, medical expenses, charitable contributions, and the like. A quick look at the press release page from the Justice Department’s Tax Division will bear that out.
Shulman indicated the software vendors aren’t likely to see much increased regulation. They already work closely with the IRS to try to get their software right. Indeed, last time I checked, I didn’t see any tax tip pop up in the midst of preparing my return suggesting that I move some income to an account in the Cayman Islands.