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IRS May Revoke 19 PTINs

The Internal Revenue Service says it has identified 19 tax preparers who have applied for Preparer Tax Identification Numbers, but who did not tell the IRS that they had failed to disclose either a criminal tax conviction or their being permanently enjoined from preparing tax returns. Permanent injunctions are used by the Department of Justice to stop those who repeatedly prepare erroneous or fraudulent federal returns.

The 19 have received letters from the IRS which proposes that their PTINs be revoked and they have 20 days to respond with reasons why the action should not be taken.

The IRS says more than 700,000 tax preparers have obtained PTINs, which must be used by all paid tax preparers on returns and claims for refunds. The IRS said that it would now begin reviewing tax returns that were prepared by anyone who used an identifying number other than a PTIN, did not use any identifying number or did not sign returns. The IRS said it is also testing ways to identify returns that appear to have been professionally prepared but were not signed by a preparer.

The IRS said it is signing about 2,000 preparers a week to the PTIN program. This registration is the first step of new standards for preparers and oversight by the IRS. Starting in the fall paid preparers, excluding CPAs, Enrolled Agents and tax attorneys, must pass competency tests.

 

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