IRS cracks down on filing fraud.In an effort to curb the number of fraudulent income tax returns filed through its electronic filing system, the Internal Revenue Service released revenue procedure 94-63, which requires electronic filers to submit fingerprints Impressions or reproductions of the distinctive pattern of lines and grooves on the skin of human fingertips. Fingerprints are reproduced by pressing a person's fingertips into ink and then onto a piece of paper. , enabling the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. to check criminal records, and authorizes the service to perform credit checks. In addition, revenue procedure 94-63 requires taxpayers applying to file electronic tax returns to be at least 21 years old and hold U.S. citizenship or permanent resident alien Resident Alien A foreigner who is a permanent resident of the country he or she resides, but does not have citizenship. Notes: Resident and non-resident aliens have different filing advantages and disadvantages. status. Qualified CPAs, attorneys and enrolled agents An Enrolled Agent (or EA) is a tax professional recognized by the United States federal government to represent taxpayers in dealings with the Internal Revenue Service. The profession has been regulated by Congress since 1884. are exempt from the fingerprinting requirements. However, all participants are subject to credit checks. Exempt individuals must provide documentation of certification upon their enrollment. In addition, revenue procedure 94-63 provides for a firm to designate a "responsible official" to represent the remainder of the firm's tax practitioners, exempting them from the requirements. That official may be responsible for up to 10 locations or branches of a firm. Therefore, a firm with 100 locations must designate a minimum of 10 "responsible officials." The new ruling also requires every branch office of tax preparation companies to submit separate applications for acceptance into the program. The IRS previously required only the headquarters of each company to apply. Under revenue procedure 94-63 the IRS will not allow the address of the electronic return originator (the return preparer or the person who accepts completed returns from taxpayers wishing their returns to be filed electronically) on either the client's signature document (form 8453) or the electronic tax return, nor will the IRS allow returns with substitute W-2 forms W-2 Form The form that an employer must send to an employee and the IRS at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. to be filed electronically before February 15. The IRS received just under 59,000 fraudulent returns between January and June 1994, prompting several congressional hearings Congressional hearings are the principal formal method by which committees collect and analyze information in the early stages of legislative policymaking. Whether confirmation hearings — a procedure unique to the Senate — legislative, oversight, investigative, or a on the matter. At one hearing, Senator John Glenn (D-Ohio), chairman of the Senate Governmental Affairs Committee, said the IRS needs to focus more on eliminating fraud rather than speedily issuing tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . |
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