Form 14157: Return Preparer Complaint

Form 14157: Return Preparer Complaint

If you’ve encountered issues with your tax return preparer, such as fraudulent behavior, misconduct, or unethical actions, you can report it to the IRS using Form 14157. The Return Preparer Complaint form helps taxpayers officially report a tax preparer’s misconduct and provide the IRS with the necessary details to investigate the matter. Filing this complaint is an essential step to protect your financial interests and ensure that tax preparers are held accountable for their actions.

This guide explains Form 14157, including what it is, who should file it, the key sections of the form, and the steps you need to take to file a complaint effectively.

What is Form 14157?

Form 14157 is a complaint form used by taxpayers to report a tax preparer’s misconduct, fraud, or unethical actions directly to the IRS. If a tax professional is found guilty of violating IRS rules or providing fraudulent services, they could face serious consequences, such as disbarment from practicing before the IRS, penalties, or criminal prosecution.

Form 14157 is specifically designed for reporting issues with tax preparers, such as:

• Falsifying information on tax returns
• Providing false tax advice or recommending inappropriate deductions/credits
• Charging excessive fees
• Failing to provide proper documentation
• Not signing tax returns or putting incorrect preparer information
• Engaging in deceptive practices or fraud

The form helps the IRS assess the situation and take the necessary action to investigate, remedy the issue, and prevent further misconduct.

Who Should File Form 14157?

You should file Form 14157 if you suspect that your tax preparer has engaged in any form of misconduct or fraudulent behavior. Some examples of when you should consider filing this complaint include:

1. Tax preparer fraud – If your preparer has falsified information on your tax return, such as inflating deductions or income.
2. Failure to sign the return – If your preparer fails to sign your return or doesn’t include the correct Preparer Tax Identification Number (PTIN).
3. Inappropriate advice – If your preparer has suggested illegal tax schemes or improper deductions that are later proven to be false.
4. Excessive fees – If your preparer charges unreasonably high fees or fails to disclose the fees beforehand.
5. Misleading tax advice – If your preparer has provided misleading advice or has misrepresented your financial situation.
6. Identity theft – If you suspect that your preparer is involved in identity theft or using your personal information for fraudulent purposes.

If any of these apply to you, filing Form 14157 will allow the IRS to investigate your complaint and take corrective action if necessary.

Key Sections of Form 14157

Form 14157 consists of several sections where taxpayers need to provide important information. Here’s an overview of the key sections:

1. Part I: Taxpayer Information In this section, you will be required to provide your personal information, such as:

   • Name
   • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
   • Mailing address
   • Phone number
   • Email address (if available)

   This information helps the IRS identify you and communicate with you about the complaint.

2. Part II: Preparer Information Here, you will need to provide detailed information about the tax preparer you are filing the complaint against. This includes:

   • Name of the preparer
   • Preparer’s PTIN (Preparer Tax Identification Number), if known
   • Address and phone number of the preparer or their business
   • Details about the preparer’s business (if applicable)
   • Other identification details such as the preparer’s EIN (Employer Identification Number), if available

   The more information you can provide, the easier it will be for the IRS to locate and investigate the preparer.

3. Part III: Description of Complaint This section is where you will need to provide specific details about the misconduct or fraudulent behavior. You must describe what happened, including:

   • The exact nature of the misconduct (e.g., false deductions, incorrect information)
   • When the event occurred (dates or time frame)
   • How the misconduct affected your return and your taxes
   • How you discovered the issue (whether you were notified by the IRS, discovered it yourself, etc.)
   • Any supporting documents (such as copies of the tax return, emails, or written communication)

   It’s essential to be as clear and specific as possible. Providing evidence can greatly strengthen your complaint and assist the IRS in its investigation.

4. Part IV: Signature and Certification In this section, you will sign and date the form, certifying that the information provided is truthful and accurate to the best of your knowledge. You will also acknowledge that providing false information could result in penalties.

   Once you have completed the form, you will need to send it to the IRS to initiate the investigation.

Filing and Deadline for Form 14157

There is no specific deadline for filing Form 14157, but it is essential to report the misconduct as soon as possible after discovering it. The sooner the IRS receives the complaint, the sooner they can take action to investigate and correct the issue.

The form can be filed by mailing it directly to the IRS. You should send it to the address provided in the IRS instructions for Form 14157. To ensure your complaint is properly tracked, consider sending the form by certified mail or another method with delivery confirmation.

What Happens After Filing Form 14157?

Once the IRS receives your complaint, they will begin an investigation to determine whether the preparer’s actions violated IRS rules or regulations. The IRS may take the following actions:

1. Investigating the preparer – The IRS will review the tax preparer’s records, past tax returns, and business practices to determine if there has been any misconduct.
2. Penalties and sanctions – If the IRS finds evidence of fraud or unethical behavior, they may impose penalties on the preparer, including the revocation of their PTIN or suspension from practicing before the IRS.
3. Refunds and adjustments – If the misconduct led to you overpaying your taxes or submitting an incorrect return, the IRS may adjust your tax liability or issue a refund.
4. Criminal charges – In cases of severe misconduct, the IRS may refer the preparer for criminal prosecution, particularly if fraud or identity theft is involved.

However, the IRS cannot share specific details about the investigation or the actions they take. They may contact you for additional information if needed, but the outcome of the case will generally not be disclosed.

Common Mistakes to Avoid When Filing Form 14157

1. Providing incomplete or unclear details – Ensure that the information you provide is as detailed and clear as possible. Lack of detail or vague statements may slow down the investigation.
2. Filing without supporting documentation – If you have any supporting documents, such as tax returns, receipts, or written communication from the preparer, include them with your complaint. These can help substantiate your claims.
3. Filing without clear evidence of misconduct – Be sure that your complaint is based on solid evidence of misconduct, rather than mere dissatisfaction with the preparer’s services.

Conclusion

Form 14157 is a powerful tool for taxpayers who have been affected by a fraudulent or unethical tax preparer. If you believe your tax preparer has engaged in misconduct or fraud, filing this form with the IRS is an essential step in protecting your financial interests and ensuring that the preparer is held accountable. By providing detailed information, supporting evidence, and clear descriptions of the misconduct, you can assist the IRS in its investigation and help prevent further issues for you and other taxpayers.