The Department of Justice, Tax Division, working together with the Internal Revenue Service, has intensified its efforts to shut down fraudulent tax return preparers and promoters of tax-fraud schemes, using both civil and criminal enforcement. Under the Tax Division’s civil injunction program, the Division files a lawsuit seeking a court order that prohibits a person from engaging in certain activities (for example, to stop promoting tax-fraud schemes or preparing tax returns), or requires a person to take certain affirmative actions (for example, to notify customers of the injunction order).
With each additional court order, the Division comes closer to being able to assure honest taxpayers that those who would cheat are not getting away with it. The Tax Division will continue to use its successful injunction program to bring more cases until the problem is solved.
If you believe your tax preparer may be under such a court order and is in violation, you may contact the Department of Justice Tax Division with details at
There are many reasons why you may have trouble with the IRS. It may not be your tax preparer's fault. Tax law in this country is extremely complicated, so if you are having any kind of problems with the IRS or any state tax authority, then get some professional help and get it now.
What to do if you need help with the IRS:
Remember the food chain:
If you have a leaky faucet you don't call an electrician, you call a plumber. It's the same concept when you have tax problems.
Seasonal tax prep outfits at the bottom
At the bottom of the food chain are the seasonal tax preparation firms. Among these are H&R Block and Jackson-Hewitt. The do-it-yourself software programs, like TurboTax, also fall at this first rung of the ladder.
Enrolled Agents -- second rung of the ladder
Next up the ladder are Enrolled Agents. According to the IRS, "An enrolled agent is a person who has earned the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before."
The basic problem with Enrolled Agents is that they are not required to have any specialized training or education beyond the IRS study program. You may be represented by someone with nothing more than a high-school diploma and no professional specialized training at all. Hiring an Enrolled Agent can be a gamble. If you are not savvy enough to know the difference, you better keep on climbing the ladder.
Certified Public Accountants -- another step up the ladder
Continuing up the ladder we encounter the first truly professional level, that of the Certified Public Accountant (CPA) which is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. In California a Bachelors degree from an accredited college or university is required.
Attorneys at Law -- at the top of the ladder
On the top of the ladder you will find attorneys at law who are tax specialists. Many tax law firms employ CPA's and oftentimes Enrolled Agents, but they work under the supervision of a licensed attorney at law. Attorneys at law are true professionals who have a four-year university education behind them plus another 4 years of law school on top of that. Working as a lawyer involves the practical application of abstract legal theories and knowledge to solve specific individualized problems, or to advance the interests of those who retain (i.e., hire) lawyers to perform legal services. The practice of law is substantially more intricate and demanding than any other the lower rungs of the ladder. Attorneys earn a Bachelors degree in addition to a Doctorate degree in law, the degree of Juris Doctor (J.D.)
Don't get burned or under-served:
If you have tax problems or other serious financial challenges, do yourself a favor and make sure you get the highest quality advice and help available -- and that will come to you only from an attorney at law. Don't be fooled by non-attorney businesses that try to help.
The cost is usually about the same to hire an attorney as it is to hire someone with lesser credentials. The fees charged by most tax attorneys are about the same or close to those of CPA firms or Enrolled Agents.
Most attorneys will grant a free consultation during which time you can meet and talk to an attorney free of any charge. The attorney will answer your questions, provide the legal advice you need, let you know what your options are, and suggest a strategy to you.
The State Bar of California
Created by the state legislature in 1927, the State Bar is a public corporation within the judicial branch of government, serving as an arm of the California Supreme Court. All State Bar members are officers of the court.
Membership in the State Bar of California affords attorneys the right and privilege of practicing law in this state. The bar's integrated network of functions and services — many of them mandated by law — protects the public and assists attorneys in meeting their professional obligations.
Make sure you speak only to an attorney at law who is in good standing with the State Bar. They have a search box on the web site. Enter the attorney's name in the search box provided under "Attorney Search"
Finding a tax attorney in San Francisco
The Bar Association of San Francisco offers an extensive lawyer referral service.
Tax Fraud hotline and tax scam resources:
If you have information about suspected tax fraud, report it to the IRS at 1-.
More information on tax scams is available athttp://www.irs.gov/newsroom/article/0,,id=98269,00.html.
For more information about tax return preparer fraud, see http://www.irs.gov/newsroom/article/0,,id=153948,00.html.
Details about criminal tax prosecutions are available on the Tax Division’s website,http://www.justice.gov/tax/,
and on the IRS Criminal Investigation Division’s website,http://www.ustreas.gov/irs/ci/.