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Form 14242 and Referrals from IRS Abusive Transactions and Technical Issues Group reporting-fraud-sm.png

11 / 24 / 2019

TAX FORM:  FORM 14242

TAX TROUBLES: The IRS Abusive Transactions and Technical Issues Group uses IRS Form 14242 to make referrals of tax return preparers to SB/SE or otherwise.

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IRS FORM 14242

When the IRS selects tax return preparers for investigation, it may be that the case is assigned to the IRS Abusive Transactions and Technical Issues Group.  If it is, examination agents within the group may ultimately make use of IRS Form 14242 to make referrals of a tax return preparer within the IRS.  See, e.g., United States v. Cubby Williams.

Many practitioners and taxpayers may not be familiar with forms like IRS Form 14242 and groups within the IRS like the IRS Abusive Transactions and Technical Issues Group.  Practitioners are well advised to become familiar with these reporting forms, and understand how specialized arms of enforcement and review like the IRS Abusive Transactions and Technical Issues Group operate within the IRS structure.

If you run across forms in practice that are unfamiliar to you, it may be that these have been utilized to initiate investigations and the like.  Please do not hesitate to contact T. Scott Tufts if you have any questions about forms like IRS Form 3949-A, , Form 14039, Form 14157, Form 13909, and Form 14242, as it relates to the reporting of fraud and abusive transactions.