posted on January 7, 2002 03:19:50 PM new
Tax preparers are treated different state by state. In my state anyone can claim to be a tax preparer. The IRS doesn't regulate it and neither does the state.
You would not believe what goes on with "professional" tax preparers, including national chains.
I had a friend who was widow mention she owed federal taxes, she had minor children, and had filed bankruptcy, and had income of less than $7000 a year. She also had a "professional" tax preparer doing her taxes for over 10 years and paying him $75.
I couldn't believe she owed taxes. I offered to look over her returns. Turns out she was eligble for Earned Income Credit for over 8 years since her husband died. I could only by law go back for 3 years but got her a refund check for over $9000. But she could have gotten over $15000 more if the "professional" had done his job.
I checked with the IRS and the state, and there was absolutely nothing that could be done to the preparer by them, other than the taxpayer filing a civil suit which would cost more than she could recover.
Beware of tax preparers. There is some recourse if the preparer is a CPA or an attorney, such as malpractice or seeking redress from a licensing board, but you would be surprised how many "professional" tax preparers are out there that shouldn't even be doing their own taxes.
posted on January 7, 2002 05:39:08 PM new
Nobody should use a tax preparer who isn't licensed...either an EA or a CPA. EAs are definitely under the aegis of the IRS, and will lose their license to practice if they make the kinds of mistakes mentioned above. CPAs are governed by a different board, but I believe they would be disciplined in this instance as well.
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Most people with relatively uncomplicated taxes don't even need a professional. The 1040-EZ takes less than an hour to put together. And there are free or low-cost sources of assistance for people who do need help but can't afford a regular fee. In Los Angeles, for example, the Jewish Community Centers offer free help to seniors (provided by volunteer experts), and there are similar programs elsewhere.
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REAMOND, your friend could file suit in Small Claims Court to recover at least a portion of what she is owed. If I were her, I would do it. In CA, it would cost about $35 and at the very least might encourage this "professional" to stop doing people's taxes. That alone would be a great service.<br />
[ edited by sonsie on Jan 7, 2002 07:18 PM ]
