IRS to target 'unscrupulous' tax preparers amid crackdown of small business tax credit [View all]

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Source: CNBC

Published Sun, Sep 24 2023 8:30 AM EDT


Roughly one year after Congress approved tens of billions in IRS funding, the agency has unveiled plans to crack down on tax preparers with “questionable practices.” The news comes amid heightened scrutiny of a popular small business tax credit.

“We are devoting more resources to addressing unscrupulous preparers who are leading their customers to underreport income or overclaim credits and deductions,” IRS Commissioner Danny Werfel said in a letter sent on Monday to Senate Finance Committee Chair Ron Wyden, D-Ore.

Tax experts say these preparers create issues for filers who may later face an IRS audit or future tax liability. They also cause problems for “good tax preparers” who face pushback from clients for following the rules, said Josh Youngblood, an enrolled agent and owner of The Youngblood Group, a Dallas-based tax firm.

“I think it’s something that [the IRS] definitely needs to make a high priority,” he added. The plan is part of the agency’s elevated focus on employee retention credit claims, according to April Walker, lead manager for tax practice and ethics with the American Institute of CPAs.

Read more: https://www.cnbc.com/2023/09/24/irs-targets-unscrupulous-tax-preparers-amid-business-credit-crackdown-.html