This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IRS Cracks Down on Tax Preparers

How the new regulations will play out for firms such as H&R Block (HRB - Get Report) and Jackson Hewitt Tax Service (JTX) is unclear.

H&R Block has 13,000 U.S. locations, a third of which are franchises. Jackson Hewitt enters 2010 with 6,000 store-front and retail locations nationwide, including more than 1,800 in Wal-Mart (WMT - Get Report) stores as part of an exclusive arrangement. Liberty Tax Service, a privately owned company, has 3,400 offices and employs 15,000 preparers.

Sheila Cort, vice president of corporate communications for Jackson Hewitt, says her company supports the IRS initiative and has "tools in place to monitor our tax-preparer training and testing."

Stricter standards may be a drain on seasonal preparers. H&R Block, for example, has 9,200 full-time, year-round employees, a number that swells to 133,700 during peak tax season. Conversely, the changes could benefit well-known firms and their massive footprint at the expense of mom-and-pop shops that may have fewer resources for additional employee training.

The initiatives announced this week will take several years to implement and won't be in effect this year. There will, however, be immediate efforts.

Starting this week, the IRS will send letters to almost 10,000 tax-return preparers nationwide with a large volume of returns and frequent errors. Many of those who receive letters may get follow-up visits from revenue agents.

-- Reported by Joe Mont in Boston.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HRB $36.57 0.00%
WMT $64.98 0.00%
AAPL $110.38 0.00%
FB $92.07 0.00%
GOOG $626.91 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs