You have heard it before. Since it is tax time, you’ll hear it again. Choose your tax preparer wisely.
The last year has been rough on most businesses. Bankruptcy filings ticked higher as the pandemic rolled in to stay. With tax season underway, the last thing anyone needs is a tax professional on the take.
If you haven’t noticed, the IRS pursues tax preparers engaged in tax fraud on a routine basis. Enforcement efforts continue to weed out fraudulent tax returns across the country. Consider some recent examples:
- The owner of the Ultimate Tax Service in Rocky Mount, North Carolina will serve more than four years in prison for defrauding the government of more than $3.5 million. The criminal tax matter arose when the woman who owned the business, and two of her employees, filed returns using false federal income tax withholding figures.
- For just four months in 2015, two tax preparers in Louisiana caused a loss to the IRS of more than $550,000. The pair worked for Pelicans Income Tax and Payroll Service. Using bogus income and withholding figures, the two scored high tax returns for clients. One of the preparers also claimed a false dependent on his own income tax return for good measure. Less than a half a year of tax crime and the two could each face up to five years in prison.
- In sunny Florida, the owner of The Tax Doctor franchise is looking at shutdown after being hit with a complaint for fixing the tax returns of clients to understate their tax liabilities and overstate refunds due. In this case, taxpayers who used the service were unaware of the tax fraud. Overall, The Tax Doctor racked up millions of dollars in tax liability for clients who now need to pay back refunds received, with interest and penalties.
Because filing false income tax returns is a perennial tax dodge. the scam is usually named on the IRS Dirty Dozen Tax Scams. This year hardship rocked the economy, from individual consumer to corporate interests struggling to make loan payments. Use reputable professionals to prepare your return or financial statements.
An accurate, timely tax return is your responsibility. When you have complex tax questions—speak with an experienced tax professional or tax attorney in your area.
Seasoned tax attorneys help you avoid criminal or civil tax audits in Cleveland
Whether you face criminal tax charges or are engaged in an employment tax dispute, our tax lawyers offer strategies and skilled representation. Robert J. Fedor, Esq., LLC serves clients throughout the US and abroad. When you have questions about compliance, we have answers. Call us today at 800-579-0997 or contact us.