IRS Hopes to Help Preparers Reduce Errors on Schedule C

Tax compliance letters will help explain importance of correctly reporting car and truck expenses.

The IRS is trying to help eliminate errors in the reporting of car and truck expenses on a Schedule C.  They hope to both educate and remind tax preparers of tax compliance by sending out approximately 5,000 letters to those preparers who have filed a Schedule C with what appear to be irregularities.

Three different letters will be sent.  The first will cover due diligence responsibilities, outline consequences, and include helpful resources for the tax preparer.  The second will encourage a minimum of five hours of continuing education on the Schedule C and will be sent to those preparers the IRS tracks for CPE – EAs, RTRPs, and prospective RTRPs.  And the third will inform preparers that someone from the IRS will be contacting them to schedule a visit to review their responsibilities as a preparer.

All letters will be sent prior to tax-filing season and copies will be posted on the IRS website when they become available.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.