IRS Modifies Preparer Compliance Initiative; Fewer Office Visits Expected

December 20, 2012

The Internal Revenue Service has informed the American Institute of CPAs that it plans to substantially revise its tax return preparer compliance initiative for the upcoming 2013 filing season.

During its 2012 filing season initiative, the IRS sent about 21,000 letters to tax practitioners and conducted approximately 2,100 preparer office visits.

The IRS has announced that it plans to send only about 5,000 letters to tax return preparers for its 2013 filing season compliance program, and approximately 1,350 of those preparers will receive office visits from an agent. According to the IRS, these 5,000 preparer letters and office visits will be “educational” and focus on automobile and truck expenses found on Form 1040, Schedule C.  Senior IRS officials have stated that all office visits will take place prior to the beginning of the 2013 filing season.

The AICPA had frequently commented to the IRS that members who received letters were not informed of the specific issue that prompted the notification and also requested the IRS to avoid sending agents to preparer offices during tax season. 

The AICPA will keep members informed of any issues as they develop with respect to the Service’s 2013 preparer compliance initiative.

For more information about the AICPA’s efforts to modify the program, see the January 2012 CPA Advocate story.