The program will not be fully implemented in the 2010 tax year and may take up to three years to fully apply.
“Some components of the program will start immediately and the groundwork is being laid. All processes and programs will be in place by 2011,” said Eric Erickson, IRS media relations.
More than 80 percent of U.S. households use tax preparers or tax software, according to the IRS.
Anyone who receives money to prepare a tax return will be required to receive a federal preparer tax identification number issued by the IRS.
Many attorneys, CPAs and enrolled agents are already using the ID numbers.
Traditionally, preparers have been required to provide a social security number as identification, so the program will offer en extra security measure to help minimize the possibility of identity theft, Erickson said.
For the current tax season, the IRS will ramp up enforcement and education in an attempt to stave off problems for tax payers.
About 10,000 letters will be sent to tax preparers, focusing on those who have been found to have a large number of returns with errors. Many of those who receive letters will receive personal visits from IRS agents to discuss “their obligations and responsibilities to prepare accurate tax returns,” the release said.
More IRS investigations will be undertaken to expose non-compliance by tax preparers. The IRS will work with the Department of Justice to pursue civil or criminal action when necessary.
The IRS reminds all tax payers using a paid preparer, Erickson said, to check credentials.
Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.
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