For example, anyone who is physically in California and prepares tax returns for a fee, and who is not an attorney, CPA or registered agent, is required to register with the California Tax Education Council, Grzes said. Visit the CETC website for information on how to file a complaint against a tax advisor who is not otherwise regulated. Does your creator present themselves as a CPA, lawyer or registered agent? If so, make sure you see their credentials yourself. If they can`t prove their claims, you can report them to the IRS. Return Creator Complaint – Form 14157 PDF Fraudulent activity or abusive tax regime by a tax preparer or tax preparation company. In some cases, tax advisors will try to increase your refund (and their fees) by increasing your exemptions or dependents. Be sure to check this section before signing the return. Adding incorrect tax credits, deductions or notional expenses may lead to an audit. Make sure your creator only adds documented information to your return. Since reporting information is stored in a creator`s computer system, there is nothing to prevent an unscrupulous creator from filing a tax return the following year without your approval. While this is not common, if you receive a duplicate filing notification from the IRS, check to see if a return was filed without your permission.
If you file Form 14157-A with Form 14157, make sure you have copies of all relevant documents related to your complaint, including a copy of the prepared statement, any advertising or business cards you received from the creator, and copies of any agreements or contracts you may have signed. No one wants to report a creator, but if you become a victim of substandard practices, keep these suggestions in mind. Form 14157 allows you to identify and indicate the reason for your complaint to the creator of the return. Image Source: Author`s response: There is – if your tax advisor is actually an accountant. Some tax advisors use this title even if they don`t have accounting clearance, said Henry Grzes, senior director of tax practice and ethics at the American Institute of CPAs. If your tax return or refund is directly affected by a tax filer`s actions, you can use Forms 14157 and 14157-A to report the following issues. The details surrounding your complaint are just as important as the documents you submit. Be as detailed as possible when describing your interaction with the creator.
These details can help create a stronger argument against the creator. Although the IRS provides you with a section to record these details, you can also go into more detail on a separate sheet of paper. Most paid tax return writers are professional, honest, and trustworthy. However, the IRS is committed to investigating those who behave inappropriately. Unfortunately, the tax advisor omitted a zero on John`s income for the year and gave him a refund to which he is not entitled. John, who doesn`t know what to look for, has no idea anything is wrong until he receives a letter from the IRS asking for additional information about his income. When John provides his actual income, he receives another letter stating that he owes the IRS more than $3,000. Be careful when your creator tries to change any of your tax documents, such as deductions or proof of income. And while there are good tax preparation software applications for those who prefer to prepare their taxes themselves, others find that they feel more comfortable handing over the reins to a professional tax advisor.
Don`t just file your tax records and hope for the best. An unscrupulous tax advisor can cause a variety of problems for you and your business. If you`re looking for a creator, make sure you choose wisely. Ask for recommendations from other business owners, and when you find a creator, due diligence is important. So, check their credentials and qualifications before handing over valuable financial data. Ghost creators address customers by not providing a copy of their tax identification number (PTIN) preparer, by not signing the return, and by asking the taxpayer to file the tax return themselves. If these creators are submitted electronically, they also refuse to digitally sign the return.