Preparer e-filed without taxpayer's signature authorization

[curiousgeorge]

My friend did not provide the tax preparer any oral or written, signed authorization to e-file.

She asked the tax preparer that she needs to review the returns - meaning to review before filing. But what she just got to review were copies of both federal and NY tax returns with a Form 9325 that says "federal tax return was filed electronically..." There is no similar form or anything that says the same for the NY return but looks like it was filed also.

She would never file the returns that were prepared for her; she is not comfortable with information/numbers on the returns that she did not provide, although the returns were supposed to have been prepared based on information that she provided.

What to do? Help!

[mwcpa]

Ask the preparer if the return was filed.  Was your friend provided e file forms to sign?

if the return was filed without e file forms the preparer could be in trouble.

[curiousgeorge]

Hello Mr. MW,

Returns were not filed.  The returns have to be re-done because there are a lot of information/data that have to be revised/deleted; and will be e-filed by preparer, but an extension has to be sent in at this time. 

Should the extension be e-filed by tax preparer?
My friend prefers to send in an extension herself - because she can do a better estimate of taxes due.  If the extension is e-filed by tax preparer - he will use the incorrect number that he came up with.

As always, much appreciate your kind assistance.  Thank you!

[mwcpa]

is money due with the extension.... if not then anyone can "file" it....

I often "file," no balance due extensions at the request of my clients... or also submit ones where money is due where the client either mails in a check or an ACH debit is set up.... or I send the client paper vouchers to remit the extension...

An extension is a request for time... and it includes a voucher to remit any expected tax owed.... if no tax is owed it is merely a request for time...

[curiousgeorge]

Good morning... and thanks again!

She has to almost re-do the returns herself. The federal may require a payment, but not the NY.  She prefers to send in extensions for both and send in payments; she can always get any refund when the return is actually filed later. 

Matter of fact she plans to just do the returns herself and not use anything that the preparer has done, which she can not trust at this time.  With the extension, she now has time to do it herself - she did not have time and also some health issues to attend to before - so she went ahead and used a preparer that a friend has been using. Unfortunately, she totally wasted her money on this preparer. Evidently, the friend likes this preparer's numbers.

Side comment - how to stop such preparers?

Have a great day! 

[Ombud]

Apr 14, 2013 6:07:09 GMT -5 curiousgeorge said:

Side comment - how to stop such preparers?

By requiring annual course updates in law / ethics / changes which is what the IRS was trying to do.

Side comment: No one should PAY for a return until it was completed which includes e-filing process. Didn't realize they could charge early in NY. Cannot in CA

[mwcpa]

"Side comment: No one should PAY for a return until it was completed which includes e-filing process. Didn't realize they could charge early in NY. Cannot in CA"

I often ask for a "retainer" BEFORE I do work for a new client (and a few notorious slow payers).  But, I do more than put numbers on a form while you wait.

[Ombud]

Retainer is different than paying for the return to be done IMHO. Could be wrong however

[curiousgeorge]

Hi Pat - I guess you are not familiar with tax preparers who inflate numbers or even create numbers (a business conference that cost x but made it xxx or that never took place) in order to get a bigger refund for a client.  And there are people who love these tax preparers - no? Person who recommended the tax preparer said he was good - I guess the recommendee's definition of 'good' did not match my friend's. 
By the way - what is a 'qualified tax preparer'?

[mwcpa]

george.... the rogue type of tax preparer is something the IRS was trying to deal with when it came up with the "registration" and "testing" requirements of all paid tax preparers a few years ago.  A few months ago to the cheer of a few the courts said those rules were not fair and said it's up to Congress to deal with it... we know how that will go.

as long as "refund" is seen by a few as the value of a good tax professional this issue of making up numbers because you can get away with it will exist

[NoNamePerson]

I had to sign a form giving my tax preparer permission to Efile my returns. And we went over the returns BEFORE she Efiled. Why wouldn't someone second guess a "qualified tax preparer"? Just take things at face value just because Personal responsibility should be a priority.

[Rocky Mtn Saver]

NoName, there's a difference between asking for a detailed explanation of the numbers and "liking my own numbers better".  You might prefer your numbers better, but that doesn't mean that they are accurate.

[Ombud]

Apr 16, 2013 22:51:05 GMT -5 curiousgeorge said:

By the way - what is a 'qualified tax preparer'?

Many states require annual education hours / registration fees / a current bond for a preparer to charge for tax prep (CA & OR among others) & annual course to do them for the VITA program.