Musings of a Burbank CPA: N.J. Tax Preparer Sentenced for Using Dead Colleague’s ID to File Taxes

Another fraudulent tax preparer bites the dust! This preparer created false returns using the preparer ID of a dead colleage who he bought the tax practice from.  See the details in Accounting Today by Michael Cohn: http://www.accountingtoday.com/news/legal-watch/nj-tax-preparer-sentenced-using-dead-colleagues-id-file-taxes-73084-1.html This is the worst.  The reason he used the dead preparer’s ID was that he couldn’t get one himself because of his past criminal record!  57 months doesn’t seem like enough time for this guy!   For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net   Phone: 818-317-6035   Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa    

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Burbank CPA Tax Musings: Congress Requires Self-Preparers and Consumer Tax Software to Check for Improper Tax Credits

A provision in the new 1.1 trillion dollar spending bill passed by Congress and signed into law by the President standardizes the need for everyone who files, paid preparers and self prepared returns alike, to fill out the standardized checklists and worksheets to claim the Additional Child Tax Credit and the Earned Income Credit.  Before this, self prepared returns were not required to fill out the checklists and worksheets.  Some paid preparers were complaining that other competitors were avoiding filling the documents out by not signing the returns and filing the returns as self prepared by the taxpayer.  See the details in this posting in Accounting Today by Michael Cohn: http://www.accountingtoday.com/news/government-news/congress-requires-consumer-tax-software-improper-tax-credits-73058-1.html?utm_campaign=daily-dec%2018%202014&utm_medium=email&utm_source=newsletter&ET=webcpa%3Ae3513258%3A2498807a%3A&st=email While I am happy at every attempt by the IRS to try and combat tax fraud, I question how effective this will be.  If a paid preparer is unscrupulous enough to file the return as self prepared by the taxpayer, what will prevent him or her from falsifying the checklists and worksheets so the taxpayer can still claim the credits.  They are filing the returns as self prepared so they do not have to take responsibility for the return preparation in the first place.  Still it is a step in the [...]

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CPA Tax Musings: Senate Approves Tax Extenders Bill

Finally!  The Senate passed the tax extender bill yesterday by a 76-16 margin.  Since it is the same bill the House passed with no amendments, it will now go the President Obama, who is expected to sign it next week.  See this update by Kelly Phillips Erb in Forbes for more details: http://www.forbes.com/sites/kellyphillipserb/2014/12/16/senate-approves-tax-extenders-bill/ This will probably delay tax season a little, as the IRS will need time to produce new forms and tax software companies will need time to update their programs, so expect the beginning of tax return processing to start end of January, maybe the first of February (kind of like last year, huh?)  But remember, you can still meet with your tax preparer as soon as you have your W2s and other tax information; it is only the filing that will be delayed. One more thing; we get to do this again next year as this is only for 2014 – these extenders will all expire in 2015 (deja vu?)  Merry Christmas!      For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net   Phone: 818-317-6035   Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa    

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