Please ensure Javascript is enabled for purposes of website accessibility
February 6, 2023

The IRS Seems To Have Its Priorities Bassackwards

The new preparer regulation system is up and running.  Accenture, formerly Andersen Consulting, collects millions to process PTINs, while millions more go to Prometric, to administer the “competency exams.”  Everyone, I mean, everything, is under control.

Except for the little matter of billions of taxpayer dollars going out the door to identity thieves claiming tax refunds.  The Wall Street Journal reports:
Between October 2010 and June 2011, the IRS received phony tax returns based on stolen Puerto Rican identities that would have led to the disbursement of $5.6 billion to alleged fraudsters, two of these people said. It is unclear how much money the IRS ultimately sent but one person familiar with the matter said an estimated $2 billion in checks was distributed.
But there’s more!  Some random headline from this week’s news:
So while Commissioner Shulman has devoted enormous resources to an elaborate system to register and control tax preparers, the filing system is hemorrhaging billions to identity thieves — who, adding insult to injury, haven’t paid a dime to Accenture or Prometric.  I understand 2 million 1040s are on hold because of ID theft problems.  
But, by golly, the first exam results are being issued.  It’s always good to secure the front door while the back of the house is on fire.

Latest Accounting Jobs--Apply Now:

There are currently no vacancies.

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Your Naughty IRS Employee of the Day

Deena Vang Lee of Fresno, CA, was indicted in April 2019 and charged with wire fraud, aggravated identity theft, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and making and subscribing false and fraudulent tax returns. She was accused of preparing family and friends’ returns for a fee that […]

image representing tax law

Fourteen People Who Inspired Future Tax Criminals in 2022

The IRS Criminal Investigation unit has released its top cases for 2022 and in it we get reality TV personalities, a rogue tax preparer, some garden variety PPP fraud, and even a former decathlete with his own Wikipedia page. Pretty sure some of these people showed up in Accountants Behaving Badly, an irregular feature we […]