{"id":139692,"date":"2025-02-25t12:00:56","date_gmt":"2025-02-25t17:00:56","guid":{"rendered":"\/\/www.g005e.com\/?p=139692"},"modified":"2025-03-27t11:32:26","modified_gmt":"2025-03-27t15:32:26","slug":"the-ouches-of-the-tax-practitioner-scam","status":"publish","type":"post","link":"\/\/www.g005e.com\/2025\/02\/25\/the-ouches-of-the-tax-practitioner-scam\/","title":{"rendered":"the ouches of the tax \u2018practitioner\u2019 scam"},"content":{"rendered":"
and two steps to protect taxpayers.<\/strong><\/p>\n by 卡塔尔世界杯常规比赛时间 research<\/em><\/p>\n in case you haven\u2019t noticed, the world has no shortage of scammers. if don\u2019t believe it, check your email inbox and spam folder. count the nigerian widows, the miracle pills, the fake invoices, the contests you\u2019ve won and all the other attempts to rob you.<\/p>\n <\/p>\n one of the most painful scams is the shyster tax practitioner. innocent, well intentioned taxpayers come looking for help only to find themselves paying a fee to be tossed into the labyrinthine hell of the irs bureaucracy. the irs does what it can \u2013 well, some of what it can \u2013 to prevent tax-related scams, but the underfunded, understaffed, underequipped agency barely begins to defend the american taxpayer from thievery coming in from all corners of the world.<\/p>\n it\u2019s most ironic \u2013 and painful \u2013 that a big part of the international scam gang is an integral part of the american tax system \u2013 the tax preparers who are all but essential for fair and compliant income tax filings.<\/p>\n part of the problem is that the thousands of pages of tax code, and tens of thousands of pages of legal opinion, are indecipherable to the average taxpayer. for most people, anything more complicated than a 1040-ez is going to require professional help.<\/p>\n trouble is, despite the thousands of dollars involved in a given tax return, there are no federal standards for tax preparers. no competency exams. no background checks. no oversight. no certification. and no accountability.<\/p>\n that crucial interface between the taxpayer and the tax agency is a wide-open door for fraud.<\/p>\n in no uncertain terms, the taxpayer advocacy service has informed congress that \u201cthe lack of regulation allows unscrupulous and unqualified individuals to prepare tax returns for a fee with no minimum qualifications. this puts taxpayers at significant risk.\u201d<\/p>\n a big problem<\/strong><\/p>\n the tas\u2019s annual report to congress says, \u201cnon-credentialed preparers, often operating with little to no training or accountability, can easily fall into the role as scam facilitators. they promise big refunds, exploit non-existent loopholes, and misrepresent credits and deductions to lure clients and earn fees. when the irs selects these returns for further scrutiny due to error or fraud, it is the taxpayer, not the preparer, who faces audits, penalties and legal consequences.\u201d<\/p>\n ouch, right? the taxpayer pays a fee for the preparation, then gets penalized for noncompliance.<\/p>\n this is a big problem. the tas finds that 61 percent of unique preparer tax identification numbers reported on ty2023 returns were non-credentialed preparers and not subject to any minimum standards.<\/p>\n so when one of these suit-and-tie scammers tells a taxpayer they can file form 7202, credits for sick leave and family leave for certain self-employed individuals, for a hefty return, the taxpayer isn\u2019t likely to read and understand the explanation behind the form.<\/p>\n consequently, while non-credentialed preparers were responsible for 83 percent of returns filing a 7202, they accounted for 98 percent of the credits that were disallowed by irs examination.<\/p>\n and then what happens?<\/p>\n the double ouch<\/strong><\/p>\n the double ouch is that the taxpayers most likely to rely on a sleazy tax preparer are financially stressed low-income workers who can least afford to wait a year or more for a refund. they\u2019re also least likely to understand what they have to do to straighten things out.<\/p>\n the nta says the irs needs to do two things:<\/p>\n with a little support from congress, the irs could make this big step toward preserving the crucial link between taxpayers and the tax collector.<\/p>\n","protected":false},"excerpt":{"rendered":"<\/strong><\/p>\n
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\nno federal standards<\/strong><\/p>\n\n
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