Here Comes the Big Bad Wolf!

An article posted by the CCH Group points out a well known "scary story type legend " about a army of IRS workers going around to the office of tax preparers to make them aware of their responsibilities, accuracy, and quality of returns. New information has come from IRS about their plans to visit at least 2,100 of the preparers in person during the filing season at their business locations. The IRS also plans on mailing around 19,000 letters to other preparers at the same time as the visits.
The letters and visits will focus on preparers who prepare a large number of returns with Schedules A; Itemized Deductions, Schedule C; Profit or Loss from Business,and Schedule E; Supplemental Income or Loss.

According to the article posted by CCHGroup "the preparers have been selected due to the high percentage of attributes that indicate errors in filing Schedules A, C or E during the 2011 filing season. Included with the letters are enclosures addressing areas of concern regarding those schedules. The letters and visits are an integral part of the effort by the IRS to provide oversight of the preparation industry, as well as to inform practitioners of their responsibilities."

Miscellaneous Income! Really???

The IRS says that miscellaneous income is anything received in exchange for goods or services. This includes awards, prizes, contest winning, and etc.

As a tax preparer I see a lot of "self-employed" tax payers that are having a hard time with the IRS. Some clients I meet because other tax firms refuse to process their tax return due to lack of paperwork.
Fathers, when was the last time that you gave the mother of your child a receipt for cleaning the house or washing your uniform? I know, NEVER!

Women enjoy being stay at home moms, great girlfriends, special daughters, and the list goes on. What about the watch you buy your mom for Mother's Day? Did she not provide a great service to be deserving of that watch? Has mom committed fraud if she doesn't file a form Schedule C???

The lines are definitely blurry when it comes to the IRS and tax laws. However, inside the envelope of countless forms that you must fill out after the IRS decides to audit you there is no box to check if you were simply confused by "blurry lines".

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