1) THE GROWING PROBLEMS OF COLLECTIONS

The IRS released statistics showing that from 2002 through 2005 the number of accounts in collection hovered between 5.9 million and 6.3 million from year to year, some years increasing and some years decreasing. However, from 2005 on, the number has grown steadily, and increased each year. For example, in 2006, there were approximately 7million accounts in collections. By 2008, the number had grown to over 9 million. By 2010, the number of accounts in collection had grown to well pass 10 million. Finally in 2011, the numbers of accounts in collection were just shy of 11 million taxpayers.

2) NUMBER OF PEOPLE WITH PROFESSIONAL CREDENTIALS BEFORE THE IRS

The tax season will be upon us soon and many people are out there trying to make money by preparing your tax return. Unfortunately, the number of unlicensed registered tax preparers is greater than the total number of CPAs, attorneys, and enrolled agents. As of June 4, 2012, only 1% of registered tax return preparers had passed the competency exam required in order to prepare tax returns after year end 2013. CPAs and tax attorneys are not required to take the exam.

Here is some interesting numbers: There are 31,189, attorneys with a PTIN number before the IRS. There are almost 213,000 CPAs registered with a PTIN. There are 717,000 plus individuals in total with a PTIN.

Be careful who you hire.