Insights Into Tax Preparer Frauds

Tax season can send blood pressure soaring and often people try and find
interim relief by hiring tax prepares to compute taxes and fill tax return
forms for federal and state taxes. It is important to make all efforts to
avoid tax preparer frauds and become victims of erroneously filed tax returns.

The IRS every year tries to raise tax payer consciousness by issuing warnings
about tax preparers who file fraudulent tax returns and the tax payer becomes
the victim as he or she is unaware of the mistakes deliberately made. Tax payers
face criminal charges and have to pay steep penalties for crimes committed
unknowingly by them.

You can avoid tax preparer frauds by opting to file your returns personally or
appointing a tax preparer who is above board and is a qualified person with an established reputation.

• Avoid appointing tax prepares who make tall claims about saving you
thousands in taxes. Such people falsify your records and fill fraudulent tax returns.

• Insist on getting references of clients and checking the references out.
Also find out if there are any legal cases or complaints against the tax preparer.

• A reliable tax preparer will sign your tax return and send you copies of
all documents filed with the IRS.

• Always make the effort of checking the return before you file it so that
you know what you are filing as federal or state returns. Ask for substantiation
and clarifications on any point you do not agree with or understand in your tax
return. Only sign the return when you are fully satisfied that everything is accurate.

• View preparer’s who suggest basing their fee as a percentage of tax
refund they get you. View such people with suspicion.

• Never sign any blank forms. To avoid last minute problems begin the
tax filing procedure well in time.

• Ensure that the tax preparer appointed by you does not inflate expenses,
enter false information, hide income, or claim credits when not due. Learn how
tax preparers manipulate records and ensure that your tax return is accurate and
above board.

Protect yourself and be an honest citizen by only choosing a tax preparer who
is qualifies, has the right affiliations, has not complaints against him, does
not lead you up the wrong path, and gives you a clear idea on what to expect as
a tax refund.

If you ever suspect a fraudulent tax preparer check with the IRS or report your
suspicion. The IRS has toll free lines: 1-800-829-0433. The IRS has collated data
on tax preparer frauds and presented it at
http://www.irs.gov/newsroom/article/0,,id=134094,00.html . Be aware and read through
the IRS guidelines. Protect yourself and your reputation as an honest law abiding
US citizen.

About Author
Barry Allen is a freelance writer for Online Tax
Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax,
services tax,income tax, property tax and many more.

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