1. Chapter 27 IRS And Payroll
607
Chapter 27 IRS And Payroll
PTIN and EAs Your name, your business name, phone number, mailing address, address and professional credentials for no cost.

2. Chapter 27 IRS And Payroll
607
Chapter 27 IRS And Payroll
Special enrollment exam fee has increased from $ to $
Under Circular 230- IRS Representations by
Circular 230 professionals and
Unenrolled preparers who complete the filing season program.
With regard to the rest – they can’t represent before IRS but IRS will be glad to take information.

3. Chapter 27 IRS And Payroll
607
Chapter 27 IRS And Payroll

4. Loving, (DC DC 01/18/2013) 111 AFTR 2d 2013-589And Payroll
607
608
Loving, (DC DC 01/18/2013) 111 AFTR 2d And Payroll
Loving limited IRS regulation of tax preparers.
In 2011, IRS regs on testing, continuing education and ethical standards for “registered tax return preparers”.
Tax preparation was not “practice before the IRS”.

5. Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶ 2017-552
608
Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶
Sexton was a disbarred attorney and suspended before IRS.
Mail fraud and money laundering.
Prior to his suspension, he offered assistance in preparing returns.
He offered to advise a client on stock options. Client found out he was suspended.
OPR investigated him.

6. Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶ 2017-552
608
Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶
Sexton petitioner the Court for:
Judgement that he was not a representative
A judgement that IRS is prohibiting for regulating tax advice.
Permanent injunction from IRS enforcing Section of Circular 230

7. Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶ 2017-552
608
Sexton v. Hawkins (DC NV 3/17/2017) 119 AFTR 2d ¶
The Court granted all the relief that he sought.

8. E. Steele No. 1:14-cv-01523-RCL(D.D.C.)
608
E. Steele No. 1:14-cv RCL(D.D.C.)
Class action suit brought on behalf of practitioners who are required to pay for PTINs.
IRS does have the statutory authority to require PTINS.
However they do not have the authority to charge for it.
If it stands the IRS must refund all fees.
IRS has appealed the decision.
PTINS has reopened but there is currently no charge.

9. 608
F. Fast Track Mediation
Fast track settlement now applies to Small business/self employed.
Goal is to resolve an issue within 60 days after acceptance.
Does not affect taxpayer’s appeal rights.

10. 608
G. CDP Process Upheld
IRS has spent considerable resources for the CDP process.
Gives you the right to a hearing in a collection case. Offer an alternative.
There is an equivalent hearing if you not availed yourself of the process before.

11. H. Is it IRS Really Calling?
609
H. Is it IRS Really Calling?
Most communication is initiated by mail.
ID thieves are even mocking letters
Go to “Basic Tools for Tax Professionals”- listing of Telephone numbers.
IRS phone numbers at irs.gov/help-resources/telephone-assistance.
IRS number is

12. 609
I. Payment Fraud
75% of treasury professional report their organizations were victims.
75% reported check fraud.
74% system was compromised.
70% hesitant in adopting mobile payments.

13. I. Payment Fraud Observation:
610
I. Payment Fraud
Observation:
Anyone who has received a payment or transfer from your account has all they need to commit fraud.
Consider “positive payment systems”.
PNC $40 per month.

14. II. Trust Fund Recovery Penalty Cases
610
II. Trust Fund Recovery Penalty Cases
TFRP is difficult to overcome
Its complicated
Revenue officer is going to interview the taxpayer using Form 4181.
The taxpayer will be asked to sign the Form 4181 or Its not a good idea to do so without proper representation.

15. II. Trust Fund Recovery Penalty Cases
610
II. Trust Fund Recovery Penalty Cases
B. Robert L. McClendon (119 AFTR 2d )
Taxpayer’s medical practice was failing because the CFO embezzled $10 million in payroll and taxes.
Taxpayer lent $100,000 to meet final payroll.
IRS assessed the TRFP.
Taxpayer closed the business and remitted all payments to the IRS.
Taxpayer deemed to be both responsible and willful.

16. II. Trust Fund Recovery Penalty Cases
611
II. Trust Fund Recovery Penalty Cases
C. US. Vs Commander
50% owner was determined by IRS to be responsible person.
Even though another member was responsible for collecting and paying payroll taxes.
He was considered responsible because he had sign off on all significant decisions

17. II. Trust Fund Recovery Penalty Cases
611
II. Trust Fund Recovery Penalty Cases
C. US. Vs Commander
The Court Found
He was a responsible person
He was willful when he new or should have known their were unpaid payroll taxes.
He had power to pay bills.
His arguments that he was unaware because of the actions of the other owner were not relevant.
Other creditors paid.

18. II. Trust Fund Recovery Penalty Cases
611
II. Trust Fund Recovery Penalty Cases
C. US. Vs Commander
The Court Found
He was a responsible person
He was willful when he new or should have known their were unpaid payroll taxes.
He had power to pay bills.
His arguments that he was unaware because of the actions of the other owner were not relevant.
Other creditors paid.

19. An accountant provides full controllership services for a client which includes paying vendors/taxes. During the year the client insists on paying vendors instead of the remitting the payroll taxes. The Accountant should:
Consider withdrawing from the engagement
Both A and B and also D
All of the above
Just look at page. 633