Fight Back Against Fraudulent Tax Return Preparers #1:The Power of Your Signature
Important Definitions
Tax fraud occurs when an individual or business entity willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability. Tax fraud essentially entails cheating on a tax return in an attempt to avoid paying the entire tax obligation.
- inflated personal or business expenses,
- false deductions, or
- unallowable credits or excessive exemptions, fraudulent tax credits, such as the Earned Income Tax Credit (EITC).
The preparers' clients may or may not have knowledge of the false expenses, deductions, exemptions and/or credits shown on their tax returns.
DISCLAIMER: I'm not the regular average tax blogger. I write my best posts by blasting Jadakiss or Fabolous mixtapes in my ear. Therefore, I'm very hyped writing about taxes!
I hate fraudulent tax preparers with a passion. I equally hate their clients that know they are dealing with a fraudulent tax preparer and get mad when they get caught. However, I got love and empathy for victims of fraudulent tax preparers. This blog post series is for the victims. I want to empower the victims and prevent future victims. I want to share with you how to spot out these fraudalent bastards. I want to share how to report tax fraud. In the first post, I want to educate you about the power of your signature on a tax return. It is very powerful so really think hard before you sign your next tax returns.
Come learn with me.....
"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge."
I need you to really understand the statement above. This eliminates most of your arguments that you didn't know you were filing a false tax return. Also, this statement gives a lot of fraudulent tax preparers an "out" saying you were aware of everything on the return. Are you really going to trust a fraud preparer to admit that he intentionally made up numbers to give you a refund? I hope not because if it is between you or them, they will lie right in front of the IRS claiming you gave them false information. I'm not making this up. This happens to people everyday!
Have you ever dealt with an tax professional that refuses to sign your tax returns? Well, nine out of ten times, they are doing this action just in case you get busted by the IRS. If you are the only person that signs the tax returns, how can you really prove it was done by someone else? Most times, the fraudalent preparer will only accept cash. Therefore there is no paper trail. I will make an bold statement; never hire anyone that refuses to sign your tax returns as the preparer. It is not worth the risk. I have represented many clients in front of the IRS who can't get a response from the person that prepared the tax returns. A lot of the times, the person doesn't return the calls and chances of finding them are slim after tax season. I don't care if the preparer is your mother or grandmother. Tell your Nana that you love her but she needs to sign the tax return if she prepares it! I seen many victims get into trouble and their own relative did the tax return.
Never feel pressured to hurry and sign your tax returns. Treat it like you are signing your life away. Don't let the preparer rush you and not answer your questions. Don't fall for the "just trust me" line. Take your time to review all the numbers on the tax return. If you don't understand an number then ask a question. I love it when my clients ask me questions about their tax returns. I refuse to have one of my clients try to tell the IRS that they didn't understand their tax returns. I'm not going to jail for any of my clients. I have lost many potential clients because I refused to make up numbers to guarantee an refund. Don't just be blind because you are receiving a refund. If you have fraudulent numbers, you will have to pay back the refund with crazy interest and penalties attached to the repayment. Protect yourself and just do the right thing!
Stay tuned for my next blog post where I will share more secrets of how to recognize or deal with fraudulent tax professionals.
"I'm like the Phil Jackson of taxes, I'm here to coach you!"
Stikks signing off!
0 comments