Tax Preparer Fraud Makes the IRS Dirty Dozen List

         With the application of the Tax Cuts and Jobs Act (TCJA), there has been an increase of Taxpayer’s choosing to have a paid professional prepare their taxes. While the vast majority are honest and provide high quality service to those who need it, there is a small group that operates with the intent to defraud and steal from innocent Taxpayer’s. while the Internal Revenue Service (IRS) does work with the Department of Justice to prosecute these individuals, it is the Taxpayer who is ultimately responsible for what is stated in the Tax Return.

          There are several ways the average Taxpayer can protect themselves from dishonest tax preparers. Never sign a blank or incomplete Tax Return. This gives your approval to whatever will be filled in later, without your review. Always ask questions about your Tax Return. Make sure that any refund goes directly to you. Ask about any charges and fees in the beginning and avoid anyone who charges their fee based on your refund. This gives them incentive to make fraudulent statements. Don’t provide any personal information or documents if you are just asking about the service fees. They are never necessary at this point. Look for a preparer who will be available all year. This will make things easier if an issue comes up later regarding a filed return.

          You have the right to ask if they are a Qualified Tax Professional. Do they have any credentials (Enrolled Agent, Certified Public Accountant, Tax Attorney)? What representation status do they have before the IRS? You may check the IRS Directory of Federal Tax Return Preparers for information, as well as the Better Business Bureau. Make the time to do this as early as possible.

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