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May 25, 2010

LICENSED TAX PROFESSIONALS COME WITH DIFFERENT TITLES

DEAR ABBY: Regarding your column of April 12, 2010, and the
letter about the man who refuses to file tax returns, your
answer was only partially correct. In addition to enrolled
agents, tax returns are also prepared by other licensed pro-
fessionals.

Certified public accountants are regulated by the various
states and do a great deal of tax preparation.

Some tax attorneys may prepare income tax returns. The
failure to file a tax return could be a crime, in which
case the individual would need a tax attorney to represent
him in trying to avoid a jail sentence. Communications to
tax attorneys may be covered by the attorney-client privi-
lege.

In addition, there are practitioners who are qualified both
as attorneys and as CPAs. While many enrolled agents may
also be CPAs, or even attorneys, you should not have re-
stricted your recommendation to enrolled agents only.
-- SYDNEY S. TRAUM,
JD-CPA, MIAMI BEACH, FLA.

DEAR SYDNEY: My thanks to you and the countless other CPAs
and attorneys who wrote to correct me. I apologize for the
omission. After wading through the tidal wave of mail, I
contacted the National Association of Enrolled Agents (NAEA)
for clarification and was told:

"There are many outstanding tax practitioners who are attor-
neys or CPAs, some of whom are members of NAEA. We do not
wish to imply in any way that they are less qualified or cap-
able in the field of taxation. We just want to call attention
to the profession of enrolled agents and let the public know
that they are the only tax practitioners SPECIFICALLY
licensed by the Department of the Treasury."

Readers, I hope this straightens out any confusion. Read on:

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DEAR ABBY: I was intrigued by the letter from the woman whose
boyfriend has refused to file tax returns for eight years. In
addition to the civil ramifications of refusing to file the
tax return as articulated in your response, it is a federal
crime not to file one.

An individual who has the requisite income is punishable for
up to three years in prison for failure to file a tax return
for each year in which he or she is responsible for filing
one. Additionally, it can be construed by the government as
tax evasion, for which the maximum penalty includes five
years imprisonment for each year in which the tax is evaded.
-- DENNIS C. KAINEN, MIAMI BEACH, FLA.

DEAR ABBY: My 12-year marriage to someone just like the man
in that letter became a financial disaster. Even though I did
file separately, I co-signed home, car and credit card loans
with him. It has taken me more than 10 years to regain my
good credit and restore my dignity.

If she does marry him, he will display immaturity in other
areas -- as a husband, a father, an employee -- and she will
look back (as I did) and realize what a horrible mistake she
made. She should not ignore this important signpost! Please
warn her to wake up before it's too late.
-- BEEN THERE, DONE THAT, ROCHESTER, N.Y.



Abby shares more than 100 of her favorite recipes in two
booklets: "Abby's Favorite Recipes" and "More Favorite
Recipes by Dear Abby." Send a business-size, self-addressed
envelope, plus check or money order for $12 (U.S. funds) to:
Dear Abby -- Cookbooklet Set, P.O. Box 447, Mount Morris,
IL 61054-0447. (Postage is included in price.)

Dear Abby is written by Abigail Van Buren, also known as
Jeanne Phillips, and was founded by her mother, Pauline
Phillips. Write Dear Abby at
T="_new" class="abbylink">www.DearAbby.com
or P.O. Box 69440, Los Angeles, CA 90069.