Archive for Uncategorized

EITC Due Diligence Penalty Increased


The EITC due diligence penalty is jumping from $100 to $500 on returns filed after Dec. 31, 2011. Learn how to meet the requirements and avoid penalties with the online EITC Due Diligence training module.

Certain Enrolled Retirement Plan Agents Not Required to Obtain a PTIN

Professional tax preparation software, 1099 printing, w-2 printing

Notice 2011-91 


The regulations governing practice before the IRS, which are published in 31 CFR part 10 and are reprinted as Treasury Department Circular No. 230 (Circular 230), establish enrolled retirement plan agents as individuals who may practice before the IRS. Enrolled retirement plan agents’ practice is limited under section 10.3(e) of Circular 230 to representing taxpayers before the IRS with respect to issues involving the following programs or forms: employee plans determination letter program, employee plans compliance resolution system, employee plans master and prototype and volume submitter program, and the Form 5300 and the Form 5500 series that are filed by retirement plans and plan sponsors but not with respect to actuarial forms or schedules. Section 10.4(b) of Circular 230 requires individuals who want to become » Read more..

How to Play Hardball with IRS Examiners by Peter J Reilly

Hard ball

Document requests from examiners when audits are initiated will often seem rather intimidating.  When representing substantial clients, we often attempt to actually give them everything they ask for in a neatly cross-referenced  book.  Knock on wood, that has resulted in quite a few no-changes in the last several years.  Exams is the paper tiger of the IRS.  They can drive a taxpayer who wants to be compliant insane, but they can’t really do anything to you other than ultimately send you a bill in the form of a statutory notice of deficiency. You have ninety days to appeal that determination in Tax Court.  » Read more..

Preparer Registration Wastes Time and Money


It’s nothing but lawless anarchy in the unregulated tax preparation industry.  Just look at what’s happening out there:

- A practitioner spends years  helping taxpayers improperly deduct “lifestyle expenses” — their clothes, their make up — even their pets!

- A practitioner costs the Treasury hundreds of millions of dollars setting up corporations and arranging sham transactions to hide income in a tax-exempt shell.

- Another practitioner helps taxpayers unlawfully avoid taxes using sham trusts and transparently phony legal arguments.

It’s no wonder the IRS has started its huge new program to register all unregulated tax practitioners, make them pass a competency test, and subject them to continuing education each year.  

Oh, wait… these cases didn’t involve unregulated preparers.  They involved an Enrolled Agent, an Attorney, and a CPA — all tax professionals that already have to pass much stiffer entrance tests and take more continuing education that anything proposed under the new unregulated preparer rules.   » Read more..

Tips for Payroll Outsourcing

payroll pic

Does your business use an outside payroll service?  Are you thinking of using one?

Payroll service companies perform an important function assisting employers comply with payroll tax laws.  But these services pose risks for employers.

There are three categories of payroll service companies.  In all three categories, the payroll service company computes employees’ withholdings and net pay, compiles payroll accounting records for the employer, and prepares payroll tax returns for the employer.

The first category of payroll service companies are payroll service providers (“PSPs”).  A PSP prepares payroll tax returns using the employer’s employer identification number (“EIN”).  The employer signs and files the tax returns. » Read more..

Things you need to do to get ready for tax season

Professional Tax Preparation Software

As you are aware starting 2010 tax season all income tax preparers must have IRS assigned PTIN number. If you do not have one, you can REGISTER with the IRS and your PTIN number will arrive within 28 days or you can register by printing and filling out Form W-12 and then mail it to the IRS.

If you already have PTIN number, you will need to RENEW your application.

If you fail to sign-up for or refresh your PTIN, penalties may apply. Tax return preparers who use their SSN, EIN, EFIN, or ETIN, instead of a valid PTIN, on tax returns or claims for refund filed after December 31, 2010 may be subject to penalty » Read more..

Services Offered to Tax Preparers

Service for tax preparers

When tax season rolls around and you need office help, by you using my service you can eliminate all the hassles of looking and teaching someone who has no clue what your business is all about. If you are a tax preparer and spend your time visiting clients, my service is your best solution.

I will send you input sheets that are really easy to fill out. The first year will take a little longer because we don’t have any data. The following year will be a lot simpler. You will receive a proforma which will have all data from prior year printed in the prior year column. All you have to do is give me input for the current year. It is THAT SIMPLE. » Read more..