On November 26, 2008 there was an article in the Wall Street Journal which the State of NY has gone after Tax Preparers and found that approximately 1300 firms, were not complying with federal and state tax regulations. this article was released by all four of the associations that I am a member of
National Association of Tax Professionals (NATP)
National Society of Tax Professionals (NSTP)
National Society of Accountants (NSA)
Accreditation Council of Accountancy & Taxation (ACAT)
I have included that article below
Wall Street Journal Story Highlights Department's Efforts To Expose Crooked Tax Preparers
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FOR RELEASE:
IMMEDIATE, Thursday
December 04, 2008
A lengthy article in the November 26th edition of The Wall Street Journal, headlined New York Sting Nabs Tax Preparers, highlights a Tax Department undercover operation which exposed significant fraud among a group of randomly selected professional tax preparers.
The Department found evidence of fraud among 40 percent of the 85 professional tax preparers who were visited by undercover agents. Some of the tax preparers already face criminal charges as a result of the sting and criminal fraud charges are being prepared against others.
The Department also opened criminal investigations against dozens of clients of these crooked tax preparers and sent out 1,570 letters to other former clients who used the preparers.
The sting is part of the Department’s increased efforts to crack down on tax cheats. Through October, the Department opened 1,378 criminal fraud investigations, more than twice as many opened in all of 2007.
Individuals who have concerns about meeting their tax responsibilities may avoid monetary penalties and criminal charges by participating in the Department’s Voluntary Disclosure and Compliance Program. Information about the program is available on the Department’s website at Department of Taxation and Finance.
To read The Wall Street Journal article about the undercover sting, click on
New York Sting Nabs Tax Preparers - WSJ.com.
Last Modified: December 04, 2008
We hope that any Residents of the State of NY are not affected by the tax preparer that you used, This was a Statewide Sting. The IRS Crimminal Investigations Department also will be investigating these tax preparation firms and could audit all returns of those firms for the returns that were prepared and filed
So if any of you out there have tried to contact or will try to contact your preparers, and the phone has been disconnected or they closed there door, you know the reason for it.
You could be in for an IRS audit as early as next month January 2009.
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Circular 230 Ruling: Compliance
This email (including any attachments) contains PRIVILEGED AND CONFIDENTIAL INFORMATION protected by federal and/or state law and is intended only for the use of the individual(s) or entity(is) designated as recipient(s). The information contained within this email should not be construed as tax advice. If you are not an intended recipient of the email, you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of this email is strictly prohibited. Disclosure to anyone other than the intended recipient does not constitute a waiver of any applicable privilege. If you have received this email in error, please immediately notify us by phone at (704) 739-4039 or by email at [email protected] and then permanently delete the original and any copy of this email (including any attachments) and destroy any printout thereof.
National Association of Tax Professionals (NATP)
National Society of Tax Professionals (NSTP)
National Society of Accountants (NSA)
Accreditation Council of Accountancy & Taxation (ACAT)
I have included that article below
Wall Street Journal Story Highlights Department's Efforts To Expose Crooked Tax Preparers
--------------------------------------------------------------------------------
FOR RELEASE:
IMMEDIATE, Thursday
December 04, 2008
A lengthy article in the November 26th edition of The Wall Street Journal, headlined New York Sting Nabs Tax Preparers, highlights a Tax Department undercover operation which exposed significant fraud among a group of randomly selected professional tax preparers.
The Department found evidence of fraud among 40 percent of the 85 professional tax preparers who were visited by undercover agents. Some of the tax preparers already face criminal charges as a result of the sting and criminal fraud charges are being prepared against others.
The Department also opened criminal investigations against dozens of clients of these crooked tax preparers and sent out 1,570 letters to other former clients who used the preparers.
The sting is part of the Department’s increased efforts to crack down on tax cheats. Through October, the Department opened 1,378 criminal fraud investigations, more than twice as many opened in all of 2007.
Individuals who have concerns about meeting their tax responsibilities may avoid monetary penalties and criminal charges by participating in the Department’s Voluntary Disclosure and Compliance Program. Information about the program is available on the Department’s website at Department of Taxation and Finance.
To read The Wall Street Journal article about the undercover sting, click on
New York Sting Nabs Tax Preparers - WSJ.com.
Last Modified: December 04, 2008
We hope that any Residents of the State of NY are not affected by the tax preparer that you used, This was a Statewide Sting. The IRS Crimminal Investigations Department also will be investigating these tax preparation firms and could audit all returns of those firms for the returns that were prepared and filed
So if any of you out there have tried to contact or will try to contact your preparers, and the phone has been disconnected or they closed there door, you know the reason for it.
You could be in for an IRS audit as early as next month January 2009.
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Circular 230 Ruling: Compliance
This email (including any attachments) contains PRIVILEGED AND CONFIDENTIAL INFORMATION protected by federal and/or state law and is intended only for the use of the individual(s) or entity(is) designated as recipient(s). The information contained within this email should not be construed as tax advice. If you are not an intended recipient of the email, you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of this email is strictly prohibited. Disclosure to anyone other than the intended recipient does not constitute a waiver of any applicable privilege. If you have received this email in error, please immediately notify us by phone at (704) 739-4039 or by email at [email protected] and then permanently delete the original and any copy of this email (including any attachments) and destroy any printout thereof.