Tax Update: IRS and Schedule C Due Diligence Letters and Visits

As part of the IRS’s continued efforts to increase paid preparer accuracy and due diligence in preparing tax returns, the IRS has begun to focus on returns that include a Schedule C. This past November and last month (January 2013) the IRS sent out 4,000 letters to preparers whom had been identified as preparing Schedule C’s that may have contained errors. Read more

In November, 1,200 return preparers received a letter informing them that the IRS would be conducting an educational visit to go over their responsibilities in preparing returns containing a Schedule C.

Click here to read more about the IRS and Schedule C Due Diligence Letters and Visits, as well as to view IRS Letters 4810, 5102, and 5105 for further details.