Filing Tax Preparer Complaints: Step-by-Step Guide

Navigating Tax Preparer Complaints: A Comprehensive Guide

Engaging a tax preparer is a strategic move to ensure your tax filings are accurate and compliant. However, encountering unethical behavior or errors can be daunting. Understanding your rights and knowing how to address these issues is crucial. This guide provides an in-depth look at filing complaints against tax preparers and reporting misconduct, empowering you to protect your financial interests.

Recognizing Tax Preparer Misconduct

Imagine this: You’ve entrusted your tax preparer with sensitive financial information, only to discover discrepancies in your tax return. Misconduct can take many forms, including:

  • Filing a tax return without your consent.
  • Altering your tax return without your knowledge.
  • Providing you with a copy of the tax return that differs from what was filed with the IRS.
  • Receiving all or a portion of your refund without your consent.
  • Directing your refund into an account that is not yours.
  • Promising a refund that you never received.

Identifying these actions is the first step toward safeguarding your financial well-being.

Understanding Your Rights as a Taxpayer

As a taxpayer, you have specific rights and must comply with certain regulations designed to protect you:

  • Accurate Representation: Your tax preparer should act in your best interest, adhering to all legal and ethical standards.
  • Access to Filed Returns: You are entitled to receive a complete copy of your tax return as filed with the IRS.
  • Confidentiality: Your personal and financial information should be kept confidential and used appropriately.
  • Professional Conduct: Expect professionalism and integrity throughout the tax preparation process.

Steps to File a Complaint Against a Tax Preparer

If you suspect misconduct, taking swift action is essential. Here’s a step-by-step guide:

  1. Gather Documentation: Collect all relevant documents, including copies of your tax returns, correspondence with the preparer, and any evidence of misconduct.
  2. Complete IRS Form 14157: This form, titled "Complaint: Tax Return Preparer," allows you to report improper tax preparation practices. Access and submit Form 14157 online or mail it to the IRS.
  3. Complete IRS Form 14157-A (if applicable): If your tax return was filed or altered without your consent, fill out Form 14157-A, "Tax Return Preparer Fraud or Misconduct Affidavit." Provide detailed information about the misconduct and mail it to the IRS with supporting documentation.
  4. Submit the Forms: Mail the completed forms and supporting documents to the address specified in the form instructions. If you received a notice or letter from the IRS, follow the instructions provided.
  5. File a Police Report: In cases involving identity theft or fraud, contact your local police department to file a report naming the tax preparer as a suspect.

Understanding IRS Form 14157

IRS Form 14157 is your tool for reporting improper tax preparation practices. It covers issues such as:

  • Failing to enter a Preparer Tax Identification Number (PTIN) on a tax return or improperly using another individual's PTIN.
  • Refusing to provide clients with a copy of their tax return.
  • Failing to sign tax returns they prepare and file.

The form requires detailed information about the preparer and the nature of the misconduct.

Understanding IRS Form 14157-A

Form 14157-A is specifically for reporting fraud or misconduct by a tax return preparer that has impacted your tax return or refund. This form requires you to provide:

  • Your personal information.
  • The tax preparer's information.
  • Details of the misconduct.
  • Tax year(s) affected.

Supporting documentation, such as a copy of the tax return provided by the preparer and a signed copy of the tax return as you intended it to be filed, should accompany the form.

Additional Reporting Avenues

Beyond the IRS, consider these additional steps:

  • Office of Professional Responsibility (OPR): If the preparer is an attorney, certified public accountant (CPA), or enrolled agent, report the misconduct to the OPR, which oversees tax practitioners' conduct.
  • Treasury Inspector General for Tax Administration (TIGTA): For issues like falsification of qualifications or theft of IRS tax refunds, file a report with TIGTA.

Preventing Future Issues

To safeguard against future problems, consider these proactive measures:

  • Verify Credentials: Ensure your tax preparer has a valid PTIN and appropriate professional qualifications.
  • Review Returns Thoroughly: Carefully examine your tax return before submission to confirm all information is accurate.
  • Maintain Records: Keep copies of all documents and correspondence related to your tax preparation.

Empowering Your Financial Future

Addressing tax preparer misconduct promptly is essential to protect your financial well-being. By understanding your rights and following the appropriate steps to report unethical behavior, you contribute to the integrity of the tax system and help prevent future misconduct. Remember, your vigilance not only safeguards your financial interests but also upholds the standards of ethical tax preparation for everyone.

Want a Faster Way to File Your Tax Extension?

eFile your federal Personal or Business Extension in just 5 Minutes! The eFile process includes 24/7 live support and immediate IRS approval. Start today and be done in minutes.