Form 14242 Reporting Abusive Tax Promotions or Preparers

OMB No. 1545-XXXX

Report Suspected Abusive Tax Promotions or Preparers
Use Form 14242 to report a suspected abusive tax avoidance scheme and/or tax return preparers who promote such schemes. More
information about tax avoidance schemes and promoters is available at www.irs.gov/LDC.
Answer the following questions as accurately as possible. Fields on this form have been designed to expand as additional information
in entered.
Mail the completed form to:
Internal Revenue Service
Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, CA 92677
You may also FAX your form to (949) 389-5083.
1. a. Describe the suspected tax scheme being promoted

b. Was the tax scheme promoted as a "new" legal tax strategy

Yes

No

2. How did you become aware of the promotion or promoter (Internet, email, TV, flyer, newspaper, magazine, friend, relative, etc.).

3. When did you first learn about the tax promotion (mm/dd/yyyy)
4. Promoter Information (If more than one promoter is involved, provide information on all promoters)
Name of promoter(s)
Social Security Number (SSN) of promoter(s)
Mailing address of promoter(s)
Email address of promoter(s)
Telephone number of promoter(s)
Headquarter location of promoter(s)
5. Describe the function/role of each person involved in the promotion

6. Do you have copies of any promotional material supplied by the promoter
Yes

No

If YES, attach copies of the promotional material to your completed form

7. a. What was the cost for the promotional material
b. Did the cost include
A monthly service fee
An audit protection fee

Yes

No

Unknown

Yes

No

Unknown

8. How did you obtain the promotional information (Internet, mail, email, telephone solicitation, professional acquaintance, etc.).
9. a. Did the promoter hold any seminars or meetings to promote the tax scheme

Yes

No

Unknown

Yes

No

b. If you answered YES in 9a, what was the cost associated with attending the seminar or meeting
c. Where was the seminar or meeting held
d. When was the seminar or meeting held (mm/dd/yyyy)
e. Did you personally attend any seminar or meeting associated with the promotion or promoter
Form

14242 (9-2011)

Catalog Number 57652G

www.irs.gov

Department of the Treasury - Internal Revenue Service

10. How is the promoter involved in the promotion (Describe promoters involvement)

11. Who is the target group of the promotion (Describe industry or type of taxpayer, i.e. nurse, policeman, home business, etc.)

12. a. Are you aware of any similar promotions in your area

Yes

No

Yes

No

b. If YES, describe the other promotions and any similarities they have to this promotion

13. Is the promotion still being advertised

14. Describe the tax benefits of the promotion (Provide any information used to explain the tax benefits of the promotion)

15. Describe the geographic scope of the promotion. For example, is it restricted to a small area, nationwide, or worldwide

16. Do you know of any tax preparers completing returns for investors or promoters based upon this promotion
Yes

No

If YES, provide the following information (if available) (If more than one preparer is involved, provide information on all preparers)
Name of preparer(s)
Mailing address of preparer(s)
Telephone number of preparer(s)
Social Security Number (SSN) of preparer(s)
17. Did you have any private/personal conversations with the promoter/accountant/return preparer/associate
Yes

No

If YES, provide the following information (if available)
With whom did you have a conversation
What did they say during the conversation
Where did this conversation take place
When did this conversation take place (mm/dd/yyyy)
When this conversation took place, if anyone else was present, list their names
18. a What is your current relationship with the promoter(s)

b. Did you have personal/telephone contact with any of the promoters
19. Do you know any individuals/businesses that have purchased or used the promotion

Yes

No

Yes

No

If YES, provide their names

Form

14242 (9-2011)

Catalog Number 57652G

www.irs.gov

Department of the Treasury - Internal Revenue Service

20. a. Did you purchase and use the "promotion package"
b. If yes, have you amended your tax returns

Yes

No

Yes

No

Contact information (Providing your contact information is optional, but will be helpful if we have questions, and will allow us to
acknowledge receipt of the referral.)
Name

Enter the date you completed this form

Mailing address
Telephone number

Email address

Privacy Act and Paperwork Reduction Act Notice
This information is solicited under authority of 5 U.S.C. 301, 26 U.S.C. 7801 and 26 U.S.C. 7803. The primary purpose of this form is to
report violation of the Internal Revenue laws.
Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation. We may also disclose this
information to other countries under a tax treaty, to federal and state agencies to enforce federal non-tax criminal laws, or to federal law
enforcement and intelligence agencies to combat terrorism.
Providing this information is voluntary. Not providing all or part of the information will not affect you. Providing false or fraudulent
information may subject you to penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential,
as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:
Preparing and sending the form to the IRS should involve 10 minutes. If you have comments concerning the accuracy of the time
estimate or suggestions for making this form simpler, we would be happy to hear from you. You can write to the IRS at the address
listed in the Instructions.

Form

14242 (9-2011)

Catalog Number 57652G

www.irs.gov

Department of the Treasury - Internal Revenue Service