A Special Alert from NATP Issued Today

NATP (National Association for Tax Professionals) learned today that the IRS is planning compliance visits with specific tax return preparers for the purpose of enforcing proper technique in due diligence and accurate return preparation.

Beginning next month, the IRS will send out 10,000 letters to a variety of preparers alerting them to their preparation responsibilities and making them aware of increased IRS monitoring of their practices. A segment of those who receive such letters will receive a subsequent appointment letter or telephone contact to set up a visit for the purpose of examining their procedures and overall compliance with due diligence, follow up, documentation, security and electronic filing.

These visits arenotfor the purpose of auditing clients’ tax returns. They are to ensure compliance and they may result in penalties and sanctions in those cases where tax preparers knowingly prepare inaccurate returns and intentionally understate or misrepresent client tax liabilities. The visits will take place between December of 2010 and April of 2011.