Because IRS researchers estimate about $290 billion in taxes goes unpaid and because no one wants more IRS agents on the street, the IRS is "deputizing" tax preparers to police their clients reports the Wall St Journal.
The law is intended to make preparers more cautious about signing tax returns that include questionable or aggressive tax items without disclosing the details to the Internal Revenue Service on a special form. Stiff penalties may be imposed not only on income-tax preparers, but also on those who prepare estate- and gift-tax returns, employment and excise-tax returns, and returns of tax-exempt organizations.