Tax blogger bashes IRS for Notice 4809

Nov 22, 2011
Popular blogger Kelly Phillips Erb, AKA “Taxgirl,” on Nov. 18 wrote a scathing post on Forbes.com criticizing the IRS for sending Notice 4809 to tax preparers across the country.

The IRS sent letters to 21,000 members of the return preparer community to make them aware of their preparer responsibilities and to provide them with information to ensure the accuracy and quality of their clients’ returns in the 2012 filing season. The IRS plans to visit at least 2,100 of the preparers during the filing season at their business locations.
 
The IRS said the notice was sent to “preparers who complete large volumes of tax returns with Schedules A, C or E,” and was intended to “remind them of their obligation to prepare accurate tax returns on behalf of their clients.”

In her post, titled, “Dear IRS: A Tax Pro Fires Back,” Phillips quotes a letter a reader and CPA from California sent to the IRS in reply.

“In all seriousness, the accusatory tone of your letter was completely unnecessary,” the CPA wrote. “The non-specific nature of your request, what action you will take, and the lack of identification of the suspected problem leave me with no action to take. Further, as a tax preparer with 250 clients who sees to it that millions of tax dollars are accurately and timely paid each year, I find your letter insulting.”

Phillips said the IRS action bodes for a “wild” 2012 filing season.

“The IRS isn’t alone in its frustrations at folks who would either take advantage of taxpayers or willingly assist in committing tax fraud,” she wrote. “But the answer isn’t to punish all preparers by sending out ugly notices with veiled threats.”

The IRS seems to acknowledge the backlash in a note on its website.

“The intent of the letter was to notify certain preparers that some clients' returns contained entries far beyond average ranges,” the site reads. “We are reviewing the feedback we have received and will follow up with additional communications soon.”

OSCPA has been engaged with the IRS and Ohio’s Congressional delegation on numerous IRS initiatives that members view as overreach, including the PTIN program, uncertain tax positions and the increasing number of firm letters and visits. View OSCPA’s comment letters.