IRS Key Messages for Tax Practitioners
Tax return preparers perform a vital function in assisting taxpayers in meeting their tax obligations. As a tax professional, you have a vested interest (as both a taxpayer and a tax preparer) in the protection of the integrity of the tax filing system. We are committed to providing tax professionals with the information and tools needed to prepare timely, accurate, and complete tax returns for their clients.
-
Stakeholder Liaison: Your local IRS contacts
-
IRS.gov web page for Tax Professionals
-
EITC information for Tax Preparers
-
Qualifying Taxpayers for EITC
-
Standards of Practice for Tax Professionals
-
Stakeholder Liaison offers Tax Professional Education
-
Requesting Taxpayer Advocate Service (TAS) Assistance
-
Publicaton 4437 Tax Hints – Practitioners Guide to the Filing Season
-
Practitioner Priority Services
-
e-Help Services for questions about e-filing
-
Important Tax Gap Messages
-
Tax Return Preparer Fraud
-
Suspicious e-mails and Identity Theft
-
Report fraud, waste and abuse
-
Low Income Taxpayer Clinics
-
Information Reporting Advisory Committee (IRPAC)
-
Government Liaison Program
-
Practitioner assistance for Volunteer Income Tax Assistance Program (VITA) and Tax Counseling for the Elderly (TCE)
-
QuickAlerts
Stakeholder Liaison: Your local IRS contacts
Stakeholder Liaison is the IRS organization responsible for practitioner relationships. If you need assistance with IRS issues in your state contact your local Stakeholder Liaison specialist. While Stakeholder Liaison’s role is not to answer technical tax law questions, your Local Stakeholder Liaison staff can point you in the right direction for more help.
You should also contact Stakeholder Liaison when you think something is not working as it normally should. Maybe your client received an erroneous notice or an IRS phone number isn’t working. The IRS depends on tax professionals to report systemic issues to correct them as soon as possible. Find your local SL contact’s phone number on the “ Contact My Local Office” IRS.gov web page.
IRS Telephone Directories for Practitioners (by state) are available from your local SL contact. Each directory provides a list of important local IRS phone numbers.
IRS.gov Web Page for Tax Professionals
IRS.gov has all the tools tax professionals need to help their clients meet their federal tax responsibilities. The Tax Professional Page offers a variety of tax information for practitioners. Basic Tools for Tax Professionals is a one-stop source for filing, paying and reporting information. You will also find information on audits, collections and representation. In addition, IRS.gov offers a wide range of electronic services such as e-file and e-services to assist you in your tax practice.
EITC information for Tax Preparers
Tax preparers play an important role in helping taxpayers understand and appropriately claim the Earned Income Tax Credit (EITC). Errors in this process can result in delay or even denial of EITC portion of your client’s refund.
Help your clients avoid the four most common EITC errors:
• Claiming a child who is not a qualifying child
• Filing as single or head of household when married
• Reporting income incorrectly; and
• Using incorrect Social Security numbers
Due Diligence
As a preparer protect yourself from potential penalties related to EITC. Ensure you adhere to the requirements in Internal Revenue Code section 6695(g) Preparer Due Diligence Requirements for Determining Earned Income Credit Eligibility
This document contains final regulations relating to the due diligence requirements under section 6695(g) of the Internal Revenue Code for paid preparers of Federal income tax returns or claims for refund involving the earned income credit (EIC). These regulations reflect changes to the law made by the Taxpayer Relief Act of 1997.
• Due Diligence
• Tax Division U.S. Department of Justice
Qualifying Taxpayers for EITC
Help your qualifying clients get the EITC they deserve more quickly by using the eligibility check sheet and practicing due diligence. Qualifying a credit is more than just checking a box; it’s about knowing the law and asking the right questions. Find out more about qualifying for EITC.
Another helpful tool can be located at http://www.eitcfortaxpreparers.com/.
Standards of Practice for Tax Professionals
The Office of Professional Responsibility (OPR) has put together a one-stop-resource shop for Tax Professionals. This page provides links to enrollment and education requirements for enrolled agents as well as information regarding Circular 230. Read More
Stakeholder Liaison Offers Tax Professional Education
IRS Stakeholder Liaison offers a wide variety of tax practitioner education opportunities, sponsoring seminars, phone forums, practitioner symposiums and tax institutes. Visit the Tax Professional Page on IRS.gov and click on “ Tax Pro Events.” And don’t forget the annual Nationwide Tax Forums. These are an excellent opportunity to hear directly from IRS experts and leaders.
Requesting TAS assistance
The Taxpayer Advocate Service is an independent organization within the IRS that assists taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels or who believe that an IRS system or procedure is not working as it should. If you believe a client is eligible for TAS assistance, call the TAS toll-free case intake line at 1-877-777-4778 or TTY/TTD 1-800-829-4059 for hearing-impaired callers.
Also be sure to check out their Tax Toolkit website. This toolkit is available to you 24 hours a day, seven days a week. Information is available in both English and Spanish and also has audio version in both languages. Some of the highlights include:
• Choosing a Tax Preparer
• Complying with Tax Laws
• Visiting an IRS Office
• Employers of Disabled Persons
• Taxpayers with Disabilities
• Individual Taxpayer Identification Numbers
• Income Tax Refund Delivery
• Earned Income Tax Credit and Family Credits
• Tax Benefits for Education
• Collection and Payment Alternatives
• Recordkeeping for Small Businesses
• Starting a Small Business
• Mortgages: Basic Information
• Identify Theft
• Federal Payment Levy Program
Publication 4437 Tax Hints—Practitioner’s Guide to the Filing Season (Keyword Search: Tax Hints) Tax Hints is an electronic publication with links to vital information and data from the irs.gov website in one convenient sourcebook for tax professionals. This document is updated each year to provide current information on many of the issues that tax professionals will encounter throughout the filing season. It also includes a summary of current changes, reminders, and other important information to assist you in filing returns for the upcoming filing season.
Practitioner Priority Services:
(Keyword Search: Practitioner Priority Services) Practitioner Priority Service is a nationwide, toll-free, accounts service designed specifically for practitioners. PPS should be the first point of contact for account-related issues. 1-866-860-4259. Hours of operation are 8:00 a.m. – 8:00 p.m. local time (Alaska and Hawaii follow Pacific Time).
The types of assistance offered by PPS are:
- Account Problems – individual or business
- Complex Refunds – undeliverable, destroyed, refund repayment, erroneous refunds, and refund offsets
- Installment Agreements – arrangements to pay balance due accounts
- Notices
- Payment Tracers
Note: PPS assistors can also provide general information on Compliance issues, such as audits or CP2000 notices.
Have a question about e-filing? Access phone representatives through e-Help Services
(Keyword Search: e-Help Services) e-Help desk assistors are ready to respond to Enrolled Agents, Reporting Agents, Electronic Return Originators, Certified Public Accountants, Software Developers, and Transmitters with non-account related questions and issues concerning e-products.
The e-Help Desk's toll-free number is 1-866-255-0654. e-Help desk assistors support IRS e-file Individual and Business, EFTPS, CCR, and e-services customers.
Note: Callers who are outside of the 50 U.S. States and/or U.S. Territories should use the International phone number: 1-512-416-7750.
Hours of operation for the e-help enterprise are:
Core Hours (Non-Peak)
Monday through Friday 6:30 A.M.- 6:00 P.M. Central Time
Expanded Service
January 12, 2007 through April 21, 2007 (Peak)
Monday through Friday 6:30 A.M. - 10:00 P.M. Central Time
Saturday 7:30 A.M. - 4:00 P.M. Central Time
The Tax Gap
The federal tax gap is the difference between the amount of tax that taxpayers should pay and the amount that is paid on time. In other words, it is the sum of non-compliance with the tax law. The latest estimate of the overall tax gap is approximately $345 billion. Learn what you can do as a tax professional to help improve voluntary compliance by visiting the Tax Gap page. The best solutions are found when working together.
Tax Return Preparer Fraud
(Keyword Search: Tax Preparer Fraud)
Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. This includes inflated requests for the special one-time refund of the long-distance telephone tax. Preparers may also manipulate income figures to obtain tax credits, such as the Earned Income Tax Credit, fraudulently.
In some situations, the client (taxpayer) may not have knowledge of the false expenses, deductions, exemptions and/or credits shown on their tax returns. However, when the IRS detects the false return, the taxpayer — not the return preparer — must pay the additional taxes and interest and may be subject to penalties.
The IRS Return Preparer Program focuses on enhancing compliance in the return-preparer community by investigating and referring criminal activity by return preparers to the Department of Justice for prosecution and/or asserting appropriate civil penalties against unscrupulous return preparers.
While most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
Suspicious e-mails and Identity Theft
The Internal Revenue Service has issued several recent consumer warnings on the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet, it is called phishing. The good news is that you can help shut down these schemes and prevent others from being victimized. If you receive a suspicious e-mail that claims to come from the IRS, you can relay that e-mail to phishing@irs.gov.
Report Fraud, Waste, and Abuse
The Treasury Inspector General for Tax Administration (TIGTA) is the independent agency responsible for investigating fraud, waste and abuse in IRS programs and IRS operations. TIGTA investigates allegations of impersonation of the IRS, bribery and extortion related to tax issues, thefts of IRS refunds and remittances by practitioners, overstatement of qualifications on Form 2848 and misconduct on the part of IRS employees. If you are aware of fraud, waste, mismanagement, and abuse in IRS programs and operations, report it to the TIGTA. Read More
Low Income Taxpayer Clinics
LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. Pub. 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area.
Information Reporting Advisory Committee
The Information Reporting Program Advisory Committee (IRPAC) provides recommendations to IRS leadership on a wide range of information reporting and administration issues. The committee presents a report to the Commissioner of the IRS each year at a public meeting in the fall. Members are drawn from substantially diverse backgrounds and include representatives of the taxpaying public, tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, and insurance and payroll communities. For additional information, visit the IRPAC information page or send an e-mail to: *public_liaison@irs.gov.
Internal Revenue Service Advisory Council
The Internal Revenue Service Advisory Council (IRSAC) provides an organized public forum for IRS officials and representatives of the public to discuss relevant tax administration issues. The Council advises the IRS on issues that have a substantive effect on federal tax administration. As a body designed to focus on broad policy matters, the IRSAC reviews existing tax policy and/or recommends policies with respect to emerging tax administration issues. The IRSAC suggests operational improvements, offers constructive observations about IRS’ current or proposed policies, programs, and procedures and advises the IRS on particular issues having substantive effect on federal tax administration. For additional information visit the IRSAC information page or send an email to *public_liaison@irs.gov.
Government Liaison Program
The Governmental Liaison (GL) program promotes cooperation between IRS and federal, nontax agencies, and state and local taxing agencies. The program offers opportunities to improve voluntary compliance, increase the efficiency of tax administration, reduce taxpayer burden, leverage limited resources and implement the GL Data Exchange Program (GLDEP). Governmental Liaison has Service-wide responsibility for providing guidance and assistance in securing Federal, state or local agency data in support of IRS programs and objectives. The GL program supports Operating and Functional Divisions' strategic priorities by facilitating Operating Division-owned initiatives in partnership and coordination with external agency partners. In addition, Governmental Liaison, through the Legislative Affairs Congressional Affairs Program (CAP) manages relationships with local congressional offices. GL is available to provide assistance to the practitioner community in coordination with Stakeholder Liaison when Fed State projects have a direct impact on their customers. GL recognizes that frequently IRS and state taxing agencies have a lot of common issues and interest with respect to practitioners. GL continues to provide support to the practitioner community by assisting in identifying IRS speakers for many of their practitioner meetings.
Practitioner assistance for Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE)
Organizations in communities across the U.S. look for volunteers to help people prepare their tax returns through the Volunteer Income Tax Assistance (VITA) or the Tax Counseling for the Elderly (TCE) programs. Volunteer tax assistors provide free, basic income tax preparation to others in their communities who have low-to-moderate incomes and need help filing their tax returns.
As a tax practitioner, there are many opportunities to participate in the volunteer program. Practitioners can assist with organizing volunteer tax sites, participate as volunteer tax preparers, lend their expertise as classroom instructors, serve as technical advisors, or, at this time of year, serve as quality reviewers ensuring the accuracy of the volunteer returns. Each of these activities are important aspects for VITA/TCE and your contribution adds valuable assistance to the program.
Becoming a volunteer can be personally rewarding and provides support to your local community. If you would like to help, you can link up with an organization in your community to participate in the program. Contact the IRS at 1-800-829-1040 and give them your name, telephone number and location. Or send an email to partner@irs.gov. A local IRS representative will contact you to direct you to the nearest organizations offering VITA or TCE.
QuickAlerts
QuickAlerts is a free online messaging service by the IRS that disseminates mass e-file messages, within seconds, to all “subscribed” individual and business e-file Software Developers, Transmitters and Authorized IRS e-file Providers. If you are a tax practitioner and would like to subscribe to QuickAlerts, you must have an IRS-assigned EFIN or ETIN number that can be used as your official login or username. You will use the 5-digit “Year-round Mailing Address Zip Code” placed on your original Form 8633, Application to Become an Authorized IRS e-file Provider, as the password. Note: If you move and your Zip Code changes, QuickAlerts does not automatically update this change. To access the QuickAlerts site directly go to http://www.envoyprofiles.com/QuickAlerts/.
|