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Wednesday, February 6, 2013

97% of Chicago Tax Return Preparers Violate City Regulations

ChicagoChicago Sun-Times, City Cracks Down on Tax Preparers:

Mayor Rahm Emanuel was forced soften his plan to protect consumers against financial scams to satisfy businesses concerned about being stripped of their licenses for mere technical violations.

But the mayor is apparently not backing down from his crackdown against alleged fraud by those who help Chicagoans file their annual income tax returns.

Ninety-three tax preparers were recently investigated by the city. Nearly 97% were found to be in violation of city regulations governing their industry.

Some were operating without a license. Others failed to provide the required consumer bill of rights. Still others were allegedly operating illegally without state approval. Or they allegedly failed to provide the required written disclosure.

A staggering total of 203 charges were filed against 90 businesses, potentially triggering $201,750 in city fines.

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Comments

Rahm Emanuel: You never want a serious crisis to go to waste

The only "crisis" here is that the city of Chicago feels that it isn't ripping off enough businesses, so it exaggerates the problem, which is far more important than doing something about it being the murder capital of the nation. But, at least, this distracts people from the real failures of the crooks running that city.

Posted by: Woody | Feb 6, 2013 12:34:10 PM

That headline is slightly misleading. Probably more appropriate to say 97% of the selectively investigated tax return preparers violate city regulations.

From another article, "The preparers generally are neighborhood outfits, since the city does not regulate certified public accountants or attorneys who practice tax law."

Posted by: the real anon | Feb 6, 2013 12:46:51 PM

The article states "Some were operating without a license. Others failed to provide the required consumer bill of rights. Still others were allegedly operating illegally without state approval. Or they allegedly failed to provide the required written disclosure." Noteworthy is what was not discussed, that is, whether the people investigated did a good job. Isn't that the reason for the licensing, etc.? If the government's intervention in the business doesn't improve quality, doesn't help ensure that consumers are getting a fair deal (rather than ensuring only that some process is followed, required notices are given, etc.), then why interfere with a transaction between private parties?

Posted by: daniel | Feb 7, 2013 5:10:36 AM

The government is just doing their job. I don't think a business that can't obtain a decent license will fall short in defending consumer rights. Valuing and defending the rights of others entails that you must respect and fulfill your own obligations whether as a citizen or as an entity. I can't see how those who can't adhere to state laws can defend other's rights properly.

Posted by: Chicago Consumer scams | Mar 1, 2013 4:43:38 AM