(I need relevant code, regulation, and similar case analysis) I need to write a
ID: 2484029 • Letter: #
Question
(I need relevant code, regulation, and similar case analysis) I need to write a tax research memo based on the following: Lance Doe allowed Cindy, a tax preparer, to e-file his taxes without signing and reviewing the forms in order to meet the deadline. Cindy received the refund through a special bank account and Lance received a check from Cindy for $2,400. The refund was actually for $4,500 which Lance did not know. Lance received a letter from the IRS because of overstated deductions, false dependency exemptions, and a miscalculated earned income credit. Lance now owes $7,000 in tax before interest and penalties.
Explanation / Answer
Answer
Following are regulations of IRS for making a Complaint about a Tax Return Preparer
Most paid tax return preparers are professional, honest and trustworthy. However, the IRS is committed to investigating those who act improperly.
Use one of the following methods if you need to report a complaint.
If your tax return and/or refund have not been impacted
You can report a tax return preparer for improper tax preparation practices, such as:
To report a tax return preparer for improper tax preparation practices, complete and send Form 14157, Complaint: Tax Return Preparer with all supporting documentation to the IRS. The form and documentation can be mailed or faxed, but please do not do both. Mailing and faxing the form may delay the processing of your complaint.
MAIL:
Internal Revenue Service
Attn: Return Preparer Office
401 W. Peachtree Street NW
Mail Stop 421-D
Atlanta, GA 30308
FAX:
855-889-7957
If your tax return and/or refund have been impacted
You can report a tax return preparer for misconduct, such as:
How you report a tax return preparer for misconduct depends on whether or not you received a notice or letter.
If you received a notice or letter from the IRS
Complete Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, and Form 14157, Complaint: Tax Return Preparer. Mail them with all supporting documentation and a copy of the notice or letter to the address contained in that notice or letter.
If you did not receive a notice or letter from the IRS
Complete Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, and Form 14157, Complaint: Tax Return Preparer. Mail them with all supporting documentation to the address where you would normally mail your Form 1040.
Examples of Abusive Return Preparer Investigations - Fiscal Year 2015
The following some of examples of Abusive Return Preparer investigations are written from public record documents on file in the courts within the judicial district where the cases were prosecuted.
Tax Preparer Sentenced on Charges Involving Filing False Tax Returns
On Sept. 21, 2015, in St. Louis, Missouri, Angel Bailey-Dyson, a tax preparer, was sentenced to 12 months and one day in prison and ordered to pay $28,694 in restitution to the IRS. Bailey-Dyson pleaded guilty in June 2015 to four counts of filing false tax returns. Bailey-Dyson worked for Tax King, a local tax preparation business. The false returns were prepared for customers for the tax years 2011 and 2012. The false returns minimized the customers’ liability and thereby maximized the customers’ tax refunds.
Wisconsin Tax Preparer Sentenced for Filing False Tax Returns
On Aug. 12, 2015, in Madison, Wisconsin, Brenda Miller, of Sun Prairie, was sentenced to 12 months and a day in prison, two years of supervised release and ordered to pay $291,245 in restitution. Miller prepared more than 40 fraudulent tax returns designed to maximize the filer’s refund. Some of the returns improperly claimed that the filer had household help income and some claimed an improper number of dependents.
You can find more cases at link : https://www.irs.gov/uac/Examples-of-Abusive-Return-Preparer-Investigations-Fiscal-Year-2015
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