Math Errors on Tax Returns

Despite the fact that a growing number of U.S. taxpayers are submitting their tax returns electronically - a method that, in theory, should promote accuracy by automatically tallying totals - The Associated Press recently revealed that mathematical errors may be on the rise.   The A.P. reports that 2.7 million miscalculations...

Filing 2012 tax returns is bound to be a more frustrating process for California’s wealthiest residents

For California's wealthiest residents, filing their 2012 tax returns is bound to be a more frustrating process. In November 2012, a public vote led to the passage of Proposition 30, which retroactively increases tax rates for state residents earning $250,000 or more per year. The federal fiscal cliff deal that...

Tax Return Preparers, Crimes, and Penalties

with thanks to Elizabeth E. Prehn, Law Clerk The Internal Revenue Service and lawmakers across the nation have introduced a bill to Congress to Increase Tax Preparer Penalties. While this bill, introduced as the Fighting Tax Fraud Act, is aimed at blatant schemes by tax preparers to defraud taxpayers, it...

Who does the Internal Revenue Service consider a Tax Preparer? Exploring Applicable Law

Who does the Internal Revenue Service consider a tax preparer? For such a simple question, the answer can be complicated. This is an important question for attorneys, accountants, Enrolled Agents, or other professionals. Tax returns that show substantial understatements due to tax preparer error, whether it be intentional or not,...