TRANSLATION:

Leverage means 'to apply extreme pressure.' So expect the IRS to

threaten to impose sanctions against any tax preparer who doesn't

do what the IRS wants them to do (see below).

SIGNIFICANCE:

Your tax pro's "preservation instincts" (fear of losing their right to

continue doing tax preparation) will eliminate any hope they will be

aggressive as your "tax advocate." Their new logo will be an over-

boiled limp weenie.

2. "Increasing Taxpayer Compliance"

TRANSLATION:

This means they want to turn your tax preparer into their tax

verifier.

What's the difference?

Tax Preparer: If you tell a tax preparer that your records show

that you put 7,426 business miles on your personal car, they would

calculate the value of your deduction ($4,083.30) and put that number

on the correct line of your Schedule C.

Tax Verifier: I predict that they will tell your tax pro that (in

the above

above scenario) they must require you to show them your vehicle records

to prove that there is documentation to back-up the number they

will enter

onto your Schedule C.

SIGNIFICANCE:

There has always been a legal requirement to maintain records to prove

each tax deduction you claim. But, until now, the only taxpayer who had

to physically produce that proof, were those 1-2% who were audited. But

if Commissioner Schulman gets his way, every taxpayer who uses a

tax professional to preparer their returns, will have ALL of hisher

tax deduction documentation reviewed prior to a tax return is even

being prepared.

Why is that a problem?

Commissioner Schulman appears convinced that most hard-working

Americans lie and cheat on their taxes. He only has enough enforce-

ment officers (field auditors) to check up on less than 2% of them, BUT

if he can make the tax pro do the job for them, they'll be able to "catch"

way more of us scuff-laws.

That thinking (and action) will create Two Very Serious Issues:

(A) A LOT of taxpayers, fearing that they may not have perfect records,

will begin do their own taxes instead of using a tax pro robbing themselves

of the valuable advice of tax professionals. That, in turn, (a) makes it more

likely they will make mistakes and (b) that they will lose legitimate

deductions

simply because of lack of knowledge.

(B) It is insulting. Are we not a nation of people who are presumed

innocent until proven guilty? We are about to lose yet another of our

fundamental freedoms by allowing a government body (IRS) to declare

that we are all assumed to be tax cheats, unless we can prove ourselves

innocent. Does anybody else think that is just wrong?

4. "Ensuring Uniform and High Ethical Standards of Conduct for Tax Professionals"

TRANSLATION:

Standards of Conduct are a set of rules whose sole purpose is to ensure that

"those subject to the Standards (tax preparers), will conduct themselves in

accordance with the wishes of those who created the Standards" (the IRS).

SIGNIFICANCE:

The states, not the federal government, establish the requirements, if any, to

prepare tax returns. The requirements already are "uniform," within each

state.

"Ethical Standards of Conduct" already are defined and enforced at the

state level.

QUESTION TO PONDER:

Who gives one individual federal government entity the IRS the right

to unilaterally usurp the rights, privileges and obligations of the states?

Just some food for thought.

Helping THOUSANDS to SAVE a BUNDLE!

Ronald R. (Ron ) Mueller, MBA, Ph.D.

author of "Home Business Tax Savings MADE EASY!" available

directly from the author at www.HomeBusinessTaxSavings.com