Thursday, December 29, 2011
The Treasury Inspector General for Tax Administration today released More Tax Return Preparers Are Filing Electronically, but Better Controls Are Needed to Ensure All Are Complying With the New Preparer Regulations (2012-40-010):
While more tax return preparers are filing electronically, better controls are needed to ensure that all are complying with the new preparer regulations. ... TIGTA found that more preparers submitted tax returns electronically during the 2011 Filing Season, but determining their noncompliance with the e-file mandate is difficult. The continued use of multiple Preparer Identification Numbers (PTINs) has made it difficult to match all tax returns to the preparers who filed them.
TIGTA also found that prisoners had registered and obtained PTINs. More than 300 prisoners received PTINs and 43 PTIN applicants are serving life sentences and received active/provisional PTINs. Current regulations do not prohibit prisoners from registering and obtaining PTINs. The IRS subsequently decided that prisoners will not be issued PTINs and those that were issued will be suspended. ...
For the first few years, the IRS plans to use a “soft” approach to enforcement with emphasis on educating and collaborating with preparers in implementing e-file requirements