Danny Werfel, Acting IRS Acting Commissioner

 Team – As we start on a new journey together here at the IRS, I wanted to take a moment to talk about the path forward. 

It has obviously been a difficult last few days for all of you.  There is rightly concern among the public about the trust that they place in the IRS to administer the tax code fairly and help America’s taxpayers understand and meet their tax responsibilities.  Working together, it is up to us to restore that trust and ensure that the IRS remains the exceptional, indispensable organization it has always been.  

The first step in this effort must be to get to the bottom of the recent allegations regarding the criteria to determine eligibility for tax-exempt status.  The missteps uncovered in the recent Inspector General report are inexcusable and cannot be tolerated by any of us.  We have a solemn duty to act as responsible, fair and impartial stewards of the taxpayers’ dollars.  As someone who has spent my entire career as a civil servant in government, this is a duty that I hold dear, and any deviation from it is unacceptable to me, as I know it is to you.  That is why we must work together with the Inspector General, the Justice Department, and Congress to ensure that responsible parties are held accountable for the inappropriate activities that occurred and that we correct the breakdowns in process and oversight that allowed them to occur.

At the same time, we must keep our eyes on our critical missions of fair application of the tax laws and effective operation of the systems that fund our government.  That mission, and your work, are of critical importance.  With that in mind, in the coming days, I plan to begin a review of our operations, processes and practices to focus on how we deliver on our mission today and how we can make improvements in the future.  The American people expect the IRS to operate efficiently, effectively, transparently and with the utmost accountability to the taxpayer.  And where that is not the case, we will take swift actions to correct it.

The President and Secretary Lew have asked for a report by the end of next month about our progress on these efforts.  And my first step in that process is to begin meeting with many of you and ask for your ideas, advice and counsel.  The people of the IRS are what make this organization what it is and guide the incredibly important work that we do on behalf of the American people.  Particularly at this time, we have an indispensable role to play in ensuring the nation’s tax system is administered with the utmost fairness and integrity.   Our path forward must be with this priority front of mind.  We all take tremendous pride in what we do for the American public, and it is that pride and commitment that I trust will guide us going forward.  For example, as the nation comes together to support the victims of the devastating tornados in Oklahoma, we should all feel a sense of pride that IRS is actively supporting the recovery effort and doing our part to help.

I look forward to meeting many of you in the coming days.  In the meantime, please do not hesitate to reach out to me directly with any thoughts and perspective on what we can do together to help this organization continue to thrive and serve the public.

Regards – Danny Werfel, Acting IRS Acting Commissioner

MAKE YOUR RESERVATIONS NOW AND JOIN YOUR FRIENDS & COLLEAGUES!

NCCPAP SUMMER CONFERENCE

@ The DoubleTree Hilton, Tarrytown, NY

Wednesday-Friday, August 7, 8 & 9, 2013

RESERVATIONS MUST BE MADE PRIOR TO JULY 14th

after which block of rooms will be released.

(800) 445-8667

NCCPAP CONFERENCE RATES:  $149 single/double

NCCPAP has supported this position for a number of years.  We believe that unlicensed preparers who serve the general population by assisting those who must file tax returns in preparing and filing those Federal tax returns should be subject to registration and regulation by the IRS; we continue to support that position.  All preparers need to be competent through study, the passage of a test to ensure such competency, and the annual maintenance of their competency by taking continuing education.

NCCPAP wants to acknowledge that, in accordance with our recommendation, the IRS has set a goal of regulating all tax preparers in an effort to protect the public and the Federal Government from both unscrupulous and unskilled preparers who may cause errors on tax returns which could result in underpayments/ overpayments and possibly identity theft.

 The goal of the IRS is to protect the public from tax fraud and identity theft and to ensure that the Federal Government receives the correct amount of tax revenue according to the law; NCCPAP strongly supports the Service’s efforts in achieving this goal.

CLICK HERE FOR PRESS RELEASE PDF

]]> http://www.nccpap.org/2013/01/24/national-conference-of-cpa-practitioners-nccpap-strongly-supports-the-efforts-of-the-internal-revenue-service-to-ensure-that-all-income-tax-preparers-including-cpas-enrolled-agents-and-attorneys/feed/ 0 http://www.nccpap.org/2013/01/10/the-fiscal-cliff-or-how-to-wait-until-the-last-minute-to-accomplish-very-little-a-k-a-a-brief-summary-of-the-american-taxpayer-relief-act-of-2012/ http://www.nccpap.org/2013/01/10/the-fiscal-cliff-or-how-to-wait-until-the-last-minute-to-accomplish-very-little-a-k-a-a-brief-summary-of-the-american-taxpayer-relief-act-of-2012/#comments Thu, 10 Jan 2013 14:56:40 +0000 host http://www.nccpap.org/?p=540 By: Robert L. Goldfarb, CPA, PFS, CGMA, DABFE, CFF, CFP

For the very first time in a very long time, probably more than 30 years, I was awake at midnight on New Year’s Eve, December 31, 2012. Generally, I am fast asleep at midnight on New Year’s Eve but this year I was too excited to fall asleep. Ok, you might be saying how I could be so excited about what Congress was going to do about the “Fiscal Cliff” that you kept you up waiting for an answer. Well, in an effort to be fully transparent, while your assumption is a good one it would be wrong. The truth is my wife and I were getting ready for a midnight 5K (3.1 miles) run on Long Island. The interesting thing is that when I got home from the race and the after-race party at about 2:10am I learned that the U.S. Senate (only moments earlier) had just approved the Taxpayer Relief Act of 2012 and everyone was now waiting for the House to vote their agreement or disagreement with the Act.

Now that I have had almost 48 hours to review the contents of the Act, I am writing this summary to try to enlighten you about some of the most significant aspects of the Act. Since time and space here are limited I cannot summarize the entire Act but I will review what I can – the Act itself is more than 150 pages in length.

As you know, had the Fiscal Cliff not been addressed with this, or another, tax act what would have happened is that the Bush-era tax cuts would have expired and we would have reverted back to the tax law as it was when President Clinton left office on January 20, 2001. The new law actually brought President Clinton’s top tax rate back into play – the 39.6% rate (although technically, the top tax rate under President Clinton was actually 36% but there was that 10% surtax on the 36% bracket causing an effective tax rate of 39.6% on some taxable income). Additionally, the tax act retains the 35% bracket but does not reinstitute the old 36% rate. The interesting point here is that the 35% tax bracket exists for a very, very small group of taxpayers – the range of the bracket is from $398,750 of taxable income up to $400,000 of taxable income for single taxpayers. The bracket starts at the same point for HOH and MFJ taxpayers but stops at $425,000 and $450,000 respectively.

The tax act also raises the top capital gains rate from 15% to 20%. It does NOT eliminate the preferred capital gains rate applied to qualified dividends. The tax act did NOT eliminate the ZERO capital gains rate or 15% rate for taxpayers with lower taxable incomes. Taxpayers and tax advisors need to recall that while these new top tax rates (i.e. the 39.6% (income tax rates) and 20% capital gains tax rates) are being promoted as the top tax rates it is important not to forget the impact of the 2010 Affordable Care Act which would most likely add a 3.8% tax rate on Net Investment Income and/or .9% additional tax rate on earned income. This could effectively bring a taxpayer’s top rates up to 40.7% on earned income and 23.8% on long-term capital gains.

To the surprise of most people Congress and President Obama agreed to leave the transfer tax (i.e. Estate and Gift taxes) exclusion amount at $5,000,000 subject to inflation which means that the 2012 exclusion amount remains at $5,120,000 subject to further inflation increases. The 2013 exclusion amount has been estimated to be $5,250,000 per taxpayer but we are awaiting the exact figure. Congress additionally retained the PORTABILITY provisions but increased the maximum tax rate from 35% to 40%.

While Congress made these provisions permanent it is not truly clear what the definition of permanent is! Ok, you say, what are you talking about? Congress has the ability, with the President’s agreement, to change anything that they previously agreed was permanent at anytime they wish – even those provisions that they previously made “permanent”. So why am I telling you this. While these provisions are permanent Congress, when they will be required to address spending cuts before March 1, 2013, could actually change these provisions as a result of those upcoming negotiations.

You will also recall that under the Clinton tax provisions there were provisions that eliminated the deduction for personal exemptions (commonly known as the “PEP” provisions) and provisions reducing the amount of deductible itemized deductions (also commonly known as the “PEASE” provisions). The Bush-era tax cuts phased-out the elimination of the personal exemptions and phased-out the reduction of the itemized deductions. The 2012 tax act reinstates the Clinton “PEP” elimination and “PEASE” reduction but these start at higher AGI levels then under the Clinton provisions. The personal exemptions will begin to phase-out when AGI exceeds $300,000. All personal exemptions phase out at a rate of 2% for every $2,500 or fraction thereof of AGI over the same $300,000 threshold amount. The itemized deductions phase out at the rate of 3% of AGI over the threshold amount but the reduction is not to exceed 80% of total itemized deductions.

Another important permanent “fix” that the 2012 Act addressed was the Alternative Minimum Tax (AMT).  As you know, there have been a series of “patches” over the years. The most recent patch actually expired on December 31, 2011. The current Act increases the exemption amount and makes this patch retroactive to January 1, 2012. The new exemption amounts for 2012 are $78,750 for MFJ, $50,600 for Single and $39,375 for MFS. Without the patch included in this Tax Act the exemption amounts would have been $45,000 for MFJ, $33,750 for Single and $22,500 for MJS taxpayers. The 2013 projected exemption amounts are $80,750 for MJF, $51,900 for Single and $40,375 for MFS taxpayers.

Another individual tax provision that was extended and made retroactive relates to IRA distributions and charitable giving. Prior tax acts have provided for the tax-free IRA distributions to charities by individuals age 70½ and older up to a maximum of $100,000 per taxpayer, per year. This provision expired December 31, 2011 but was reinstated for 2012 and 2013. Two special transition rules were enacted due to the late passage of this Tax Act (passed by the Senate and House on January 1, 2013 and signed into law by the President the next day). The first transition rule allows for distributions made in January, 2013 to be recharacterized as if they were made on December 31, 2012. The other transition rule allows for distributions from IRAs to taxpayers made in December, 2012 to be tax free if the funds are transferred to a charity before February 1, 2013.

The last provision that I wanted to bring to your attention in this article relates to the so-called “Bonus Depreciation” and Small Business expensing provisions (Code Section 179). The new law renews the 50% bonus depreciation through 2013 in most cases. Additionally, the Code Section 179 small business expensing provision is also extended through 2013 with a $500,000 expensing allowance and a $2 million investment limitation. Without the enactment of this provision the expensing allowance would have taken a severe drop to $25,000 with an investment limitation of only $200,000.

MINEOLA, NEW YORK – November 5, 2012 – The National Conference of CPA Practitioners (NCCPAP) has announced newly elected Officers and Directors for the year 2012-2013.

“Each year, NCCPAP changes its’ executive team. This enables us to continually gain fresh ideas, new direction and work efficiently and effectively to grow the organization,” said NCCPAP newly elected President, Edward P. Caine.

“We are grateful for the efforts of the outgoing executive team which provided a strong foundation for the incoming Officers and Directors to build on,” Caine added.

President:
EDWARD P. CAINE, MBA, CPA, CFF, CITP, CGMA
Edward P. Caine is a graduate of both Lehigh University and Temple University with over 39 years of experience in accounting and management. His CPA practice, a member firm of the PCPS section of the AICPA, is headquartered in Pennsylvania (three offices), with another office in Northern New Jersey. The firm specializes in individual and corporate clients, general business consulting, and litigation support. He is regularly invited to lecture on accounting and audit issues pertaining to small businesses and how to market and grow a CPA practice. His background includes both public and private work. Edward began his public accounting career in the small business group at Arthur Andersen and later worked at Deloitte & Touche. Since then he has served as the CFO, Director of HR and Director of IT of the JCC MetroWest, West Orange, New Jersey (the largest JCC in New Jersey and fourth largest in the U.S.), and as Chief Administrative Officer of the Union for Reform Judaism (URJ), with direct responsibility for the administrative day- to-day operations, including 14 offices and 13 other sites in North America. Edward was CFO of both a large accounts receivable management services corporation and a manufacturing firm. In addition, he has eight years of experience in commercial banking in credit, finance and accounting. Edward is a member of Beta Alpha Psi (the national Honorary Accounting Fraternity) and is listed in Marquis’ Who’s Who in America. He serves on numerous boards including Golden Slipper Club and Charities (one of the largest non-profits in the Greater Philadelphia area), where he is national treasurer, and is vice chair of Citizens Audit Review and Financial Advisory Committee (CARFAC) of Radnor Township and chair of the audit committee. Edward is a member of the IRS NPL committee and serves on the IRS Eastern Pennsylvania Working Together Steering Committee. He is the vice president of the largest BNI chapter in the Delaware Valley region and created the Delaware Valley chapter of NCCPAP. Ed is a member of both the American Institute and Pennsylvania Institute of CPAs (AICPA and PICPA) and was a past statewide chair of the PICPA Business, Government and Education committee (BGE). He is a past president of the Temple University School of Business and Management Alumni Association and the Main Line Reform Temple, Beth Elohim, in Wynnewood, Pennsylvania. In 1997–98 Edward was appointed to serve on President Clinton’s Roundtable on Race Relations. He resides in Bryn Mawr, Pennsylvania with his wife of 34 years, Jill.

Executive Vice President:
SANFORD E. ZINMAN, CPA, MBA
Sanford Zinman is president of Sanford E. Zinman, CPA PC in White Plains, New York. He graduated from Iona College with a Master of Business Administration in Public Accounting and started his own practice in 1983. He has been in public accounting for more than thirty years, with expertise in compilations and tax. He is licensed in New York and Connecticut and has a diversified clientele including architectural firms, attorneys, authors, childcare providers, interior designers, construction and real estate developers, insurance professionals, medical/dental professionals, restaurants, and retail operations. He provides business and individual tax services and compilation services and well as individual and corporate tax planning and payroll, and payroll tax services.
Sanford is a member of NCCPAP, AICPA and the National Society of Accountants. He serves as the chair of NCCPAP’s Tax Policy Committee and is the president of the Westchester/ Rockland Chapter. He has testified before the Senate Finance Committee and the House Committee on the Judiciary on various tax and identity theft issues.

Vice Presidents include:

KENNETH HAUPTMAN, CPA
Ken Hauptman obtained a BS in Economics, with a specialization in Accounting, from Brooklyn college, and a Master of Science in Taxation from C.W. Post–Long Island University. Ken has been practicing public accounting for over 40 years, initially with Lutz and Carr, CPAs, and later as a partner with the firms of Weinick, Sanders & Co., CPAs, and Hauptman, Elsner & Co., CPAs, prior to establishing his own CPA practice.
Ken is a member in good standing of AICPA, the New York State Society of CPAs and NCCPAP, where he has served as secretary of the Nassau/Suffolk chapter, a member of the Board of Directors, co-chairperson of the Nassau/Suffolk chapter MAP committee, a member of the Board of Directors, and as chairperson of the national MAP committee and treasurer. Ken currently serves as vice president of NCCPAP as well as the co-chairperson of the NYS Society of CPA’s Nassau Chapter Small Firm MAP committee. Ken resides in Old Bethpage, NY with his wife Robyn.

VITO M. MASTRO, CPA
Vito M. Mastro received his MBA in Accounting from St. John’s University. He has his own CPA practice, with an office in NY City and another in South Brunswick, New Jersey. Vito is active in his hometown of Princeton Junction, New Jersey, especially in the parish of Saint David the King where he is one of the original founders and the first trustee appointed by the Bishop of Trenton. He was also founder of the Knights of Columbus chapter 14716 and served as Grand Knight for two-and-a-half years. Vito serves as Treasurer of the United Way of Greater Mercer and Princeton counties, and is on the Board of Directors and RIC committee (fund allocations) and Chairman of the Finance Committee. He is also a member of the NYS CPA Society and the NJ Society of CPAs–Mercer Chapter. He has served as New Jersey NCCPAP chapter President and is currently serving as Treasurer in the New York City and New Jersey Chapters. He is also a prior member of the Board of Directors of NCCPAP. Vito lives with his wife Elaine.

DAVID J. ROTHFELD, CPA
David Rothfeld is a graduate of Adelphi University, with both a BBA in Accounting and an MS in Accounting. His accounting practice is located in Hicksville, NY focuses on business and individual accounting, taxation and financial planning services.
David is treasurer of the Educational Foundation of the Nassau/Suffolk chapter of NCCPAP, Office Operations chairperson of the chapter as well a member of the Education, Insurance, and Budget committees of the chapter. He currently serves as a vice president of national, is chairman of the national Public Relations committee, and is a member of the Membership and Education committees. In addition, David is a member of NYSSCPA and Financial Planning Association. He resides in Massapequa, New York, with his wife Ellen. They have two grown children and one grandson.

LYNNE MARCUS, CPA, CFP (Secretary)
Lynne Marcus has a BA in Accounting from Queens College and an MBA in Finance from St. John’s University. She completed the certified Financial Planner program of the College for Financial Planning at Queens College and has a General Securities License and Insurance License. She is an Investment Advisor Representative with Ameriprise Financial, and a member of the FINRA and SIPC. Lynne began her accounting career with Price Waterhouse in their Small Business Department. She has worked in both large and small companies. Her experience includes banking, real estate, service and retail organizations, and in her current practice, in Great Neck, New York and Palm Beach Gardens, Florida, she offers services including computerized accounting and bookkeeping, tax return preparation and tax planning, budgeting, estates, trusts, investments, insurance and retirement planning. Lynne has been an Adjunct Professor at several New York and Florida universities, where she taught Accounting and Auditing courses. She was Program coordinator and teacher in the Certified Financial Planner Program and Foundation in Financial Planning in conjunction with the college for Financial Planning in Denver, Colorado. Lynne was also the 1992- 1994 chairperson for the NYS Society of CPAs, Nassau (NY) chapter–Personal Financial Planning committee.

SARAH JANSEN, CPA (Treasurer)
Sarah has a BS in Accounting from C.W. Post–Long Island University and an MS in Secondary Education from Hofstra University. She holds New York State Teaching Certifications in Business Education and Mathematics. Sarah is a manager at Katz, Bloom & Schon CPAs LLc and has been in practice since 1992. Previously, she worked for Schoenfeld Mendelsohn and was comptroller for Colonial Commercial Corp., a publicly held holding company involved in mortgage banking, manufacturing, specialty retail, and financial services. She has also taught math and computer applications. Sarah was elected a trustee of the Village of Bayville for two terms, with budget oversight responsibilities. Sarah is a member of NCCPAP, where she currently serves as treasurer. She is an active member of the national Tax committee and Nassau/Suffolk Chapter’s Education committee, and has served on the chapter’s nominating committee and the Long Island Tax Symposium Committee. She is also a member of the AICPA. Sarah lives in Bayville, NY, with her husband, Michael.

Directors include:
SANDRA G. JOHNSON, CPA, EA, CFE
Sandy Johnson is a certified Public Accountant licensed in the state of New York, an Enrolled Agent with the Internal Revenue Service and a certified Fraud Examiner. She is president of her own accounting and tax practice in Bellmore, New York, where she focuses on individuals and the unique needs of small businesses. Sandy is also an adjunct professor at Five Towns College and a lecturer on various business topics at Hofstra University’s continuing Education college, the Small Business Development Center at SUNY Farmingdale and at various local clubs and organizations. She is the immediate past president of the Long Island Center for Business and Professional Women and past president of the Chamber of Commerce of the Bellmore’s, as well as vice president of the Nassau/Suffolk chapter of NCCPAP and co- chair of the MAP committee. She is a member of NYSSCPA and the Association of Certified Fraud Examiners. Sandy is the 2010 recipient of the Town of Hempstead Pathfinder Award in Business, 2010 recipient of the NYS Assembly Women of Distinction Award, 2010 and 2011 winner of the LI Press “Best of LI” contest in the Accounting Firms and CPA categories, as well as the 2007 recipient of the Nassau Council of Chambers of Commerce Small Businessperson of the Year award.

SHELDON KRONOWITZ, CPA
Sheldon Kronowitz is a sole practitioner with an office in New Hyde Park, New York. His client base consists primarily of small businesses that operate in over 20 states. He has many clients in the areas of taxation, accounting and auditing; business consulting and business start-ups. Sheldon initially was a tax preparer for a nationally known tax service before he became a sole practitioner. He received a BS in Accounting from Brooklyn College, CUNY and a Masters of Professional Services from C.W. Post–Long Island University. In 1984 he became a certified public accountant. He has been an Adult Education instructor in the Lawrence Public Schools as well as a guest commentator on “I am curious” on radio station WGBB, where he answered listeners’ live tax questions. In addition to serving clients’ needs as a practitioner, he has worked as a chief financial officer, controller and consultant, where he has managed corporate fiscal, administrative, grant administration and human resource departments. Sheldon has been a member of NCCPAP since 1987. He has served as chair of the Nassau/Suffolk Chapter Audit Committee, a member of the Education and Insurance committees and a member of the national Tax Committee; in November 2011 he began a two-year term as a chapter director. He is also a member of the New Hyde Park Chamber of Commerce.

STEPHEN MANKOWSKI, CPA
Steve Mankowski is a graduate of La Salle University with a Bachelor of Science degree in Accounting and Finance. He has over 24 years of experience in accounting and management, and now works from his CPA office in Hatboro, Pennsylvania. His client base centers on the mid-Atlantic region but reaches throughout the continental United States. The firm serves individuals and small businesses through its accounting, taxation, business consulting and litigation support. The primary focus of his business clients is small and start-up enterprises. Steve has served on numerous Boards including Portside Arts Center, a small community-based non-profit enterprise. He continues to serve on the membership committee of the Ivyland chapter of Business Network International (BNI) and has previously served as president and vice president of the chapter. In 2001 Steve served on a Pennsylvania committee to promote recycling businesses within the Commonwealth.

CLICK HERE FOR PDF VERSION

The 34^th Annual Conference

MINEOLA, NEW YORK – October 29, 2012- The NCCPAP 34^th Annual Conference was held on October 22 – 24, 2012 at the DoubleTree Hilton in Valley Forge, PA.   Major tenets of the conference were committee and tax meetings and the election of NCCPAP officers and directors.   Members of the National Conference of CPA Practitioners spent Monday and Tuesday in sessions focused on; MAP, Peer Review, Education, Technology, Finance, Membership, Public Relations, By-Laws and Ethic Committee Review.   The National Conference of CPA Practitioners used this conference to strategically plan and development program initiatives that strengthen the industry and association for the coming year.

“Taxation, accounting and audits issues are always top-of-mind at NCCPAP.  Much time during the conference was spent planning our Congressional agenda for our annual visit to Capitol Hill where the association meets with Senators, Legislative Directors and Aides from various small business, finance, bi-partisan Congressional CPA Caucus and Representatives of the Internal Revenue Service,” stated Lana Kupferschmid, NCCPAP President.

“The conference was a means for NCCPAP to get its national members together to review and discuss important organizational agenda topics, offer a platform for our members to engage in professional networking, recognize and award our members and to install new Directors, Officers and Board of Directors for 2013” stated Edward Caine, CPA, incoming NCCPAP President for 2013.

PDF OF PRESS RELEASE

2012 Long Island Tax Professionals Symposium

Visit: go.nccpap.org/litps/home

&

2012 National Tax Professionals Symposium

Visit: go.nccpap.org/ntps/home

“This honor is an indication that Lana Kupferschmid is as well respected throughout our profession by her peers and colleagues here at NCCPAP,” said Edward Caine, incoming president. “We congratulate her for being recognized as an influential accounting leader of 2012 in the United States.”

“To be recognized alongside many influential leaders within the profession and the President of the United States, is a great honor and very humbling.   This profession is very complex.  Accountants face ever-changing tax laws, technology, accounting and auditing standards.   For me, to have the opportunity to be an effective change-agent in this profession is truly amazing.  To be recognize for that effort, is quite an honor,” states Kupferschmid.

Mrs. Kupferschmid runs her own accounting practice in Fort Myers, Fl.  She was employed by Haskin & Sells, CPA, USV Pharmaceutical and eventually became the Vice President/Controller for Matrix Corporation in Orangeburg, NY.  She has played an active role in NCCPAP since 1989.  She and Aaron, her husband of 41 years, have twin daughters and enjoy visiting with their four grandchildren living in Colorado.  They are both active in their community and enjoy bicycle riding, and traveling in their motor home.

CLICK HERE FOR PDF OF PRESS RELEASE

Protecting Potential Victims of Tax Fraud

Recommendation designed to resolve fraud complaints in a more timely, secure manner

MINEOLA, NEW YORK  - August 2, 2012 – The IRS has implemented a recommendation by the National Conference of CPA Practitioners (NCCPAP) for protecting potential victims of tax fraud. NCCPAP – which regularly appears before Congress to discuss important tax policy issues – originally made the recommendation last June 28, in a hearing before the House Judiciary Crime Subcommittee on Identity Theft and Income Tax Preparation Fraud.

At the hearing, NCCPAP recommended that the IRS to send potential victims of tax return fraud a letter (4883C) with a dedicated telephone number and a dedicated fax number. The purpose is to resolve their complaints in a more timely and secure manner.

Prior to the hearing, a Treasury Inspector General for Tax Administration (TIGTA) report concluded that the IRS was not effectively communicating or providing timely assistance to taxpayer victims of identity theft, increasing their burden and exposure.

“NCCPAP commends the IRS for implementing our strategy for protecting potential victims of tax fraud,” said Sanford Zinman, NCCPAP’s National Tax Chair. “We are glad to see that the IRS has responded to the TIGTA report and the House of Representatives hearing on identity theft and we are honored to have played a role in this process.”

NCCPAP is a strong supporter of identity protection, and has spearheaded PTIN regulations for tax preparers to protect their social security numbers. It has also partnered with the IRS to register all tax preparers in order to reduce those who try to exploit the IRS modernized e-file system.

Press-Release-IRS-Fraud-Victims-08022012

NCCPAP National Tax Committee discusses important issues associated with Identity theft

MINEOLA, NEW YORK – June 28, 2012 – The National Conference of CPA Practitioners (NCCPAP) – which advocates on issues that affect Certified Public Accountants and their clients – continues its presence on the Hill, as the National Tax Policy Chair, Mr. Sanford Zinman, testifies at the Crime Subcommittee hearing to discuss identity theft in relation to tax refund fraud today, June 28^th at 9:45 am in Washington DC.

“We are honored to return to the Hill to meet with policy makers and discuss identity theft tax fraud issues that affect individuals, business owners and CPA practitioners, said Sanford Zinman, NCCPAP’s National Tax Chair. “The Identity Protection Specialized Unit (IPSU) has documented a 280% increase in identity theft since 2010.   This is a serious issue with significant financial ramifications to the taxpayers.  Our testimony to the house stated the problem using client case studies and proposed solutions. We hope that by appearing before the nation’s makers of crime prevention policies, we have planted seeds to positively influence and safeguard security protection against identify theft.”

The recent Treasury Inspector General for Tax Administration (TIGTA) report concluded that the IRS is not effectively communicating or providing timely assistance to taxpayers that fall victims of identity theft, resulting in increased burden and exposure for victims of identity theft.

NCCPAP has been a strong supporter of identity protection.  The association has spearheaded the PTIN regulations for tax preparers to safeguard the preparer’s social security number and have partnered with the IRS in the registration of all tax preparers to reduce the number of unscrupulous preparers who try to take advantage of the IRS modernized e-file system. H.R. 4362, the STOP Identity Theft Act of 2012.

Press-Release-ncCPAp-Congressional-Identity-Theft-06282012 _3_

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