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Tag: tax preparer

What is Tax Preparer Fraud?

stolen tax refund

  Tax preparer fraud involves illegal conduct by a tax preparer and can take many different forms: The tax preparer may direct your refund to their bank account instead of yours. The tax preparer may not be qualified to prepare your return. Your refund may be fraudulently inflated to get your business or earn commissions… Read more »

Tax Preparer Audit Red Flags

Why the IRS Investigates Preparers Profiling is illegal in criminal court, but it happens all the time in tax court cases. That’s especially true among tax preparer investigations, as T-men usually look for “red flags” to decide which tax prepares to audit. Some red flags in personal 1040s include even-number deduction claims (e.g. monthly utilities… Read more »

Top Three Reasons The IRS Will Audit Tax Preparers

Learn to Avoid IRS Tax Preparer Audits The best way to eliminate the consequences of a dangerous situation is to know how to avoid that situation in the first place.  There are many reasons the IRS might want to audit a tax preparer.  Below is a brief discussion of the top 3 reasons why the… Read more »

What You Need To Know About Tax Preparer Investigations

Professional tax preparers are not only held to a higher standard when they prepare their return, they are also held to a higher standard in terms of tax preparer investigations.  This is due in large part  to the way many  law enforcement agencies — including the Criminal Investigation Division at the IRS — conisder a… Read more »

Your Responsibilities As A Tax Preparer

Tax Preparer Audit

Basic Due Diligence Requirements for Tax Preparers Christmas usually comes a little late for most third-party tax preparers, as most of these professionals do the bulk of their business in the first quarter of the year. Although various do-it-yourself platforms, such as TurboTax, have cut into their market-share over the past several years, there are… Read more »

EITC Due Diligence Penalties Expand to Other Tax Credits

In February 2014, we published a blog detailing the IRS’s new campaign to up the ante when enforcing the Earned Income Tax Credit (EITC) duty of due diligence.  At that time, the Internal Revenue Service penalized tax preparers who failed to meet their duty of due diligence $50 per return.  Now, that penalty is a… Read more »

Don’t Write Off the Importance of Finding a Good Tax Preparer

According to founding father, prolific inventor and famous kite flyer, Benjamin Franklin, “In this world nothing can be said to be certain, except death and taxes.”  He did manage to get his face on the $100 bill so I think it is safe to say he knew what he was talking about.  While this is… Read more »

Tax-Related Identity Theft: A Tax Preparer Alert

Tax Preparers: Be on the Alert for Tax-Related Identify Theft Tax preparers are in a position to help their clients in a way that may not be immediately obvious: detecting tax-related identify theft. If there is an illegal way to make money, somebody is doing it, and thieves are stealing social security numbers to file… Read more »