Scam preparers

[oceanlovin'ea]

I saw a return that one of these people have filed that we keep hearing about. She used Turbo Tax and filed the returns as self prepared returns. She took education credits for this couple, who are in their late 50's for 3 years.

I showed it to the lady and she nearly had a heart attack.

I don't get why people do this stuff. The people got a larger tax refund. But unless she is charging enormous fees...how does this benefit her?

It blows my mind!!!!

Linda, EA

[mastertaxguy]

Scam preparers: Anything refundable seems to encourage certain things

The refundable AOC has encouraged a lot of scams which escape IRS notice at least for a couple of years. Sort of like an earned income credit for taxpayers who have no young children, or a way of fattening up refunds for taxpayers who have children but want a little more. Doing returns on some tax software for a taxpayer but labeling them as self-prepared is a way to get around registration and all that. These folks move about a community every couple of years (from one side of town to another, usually using a made up name since it is not on the return). Not a whole lot we can do about it, though. None of us want to snitch out the taxpayer, do we?

[oceanlovin'ea]

We have her business card. Although the phone number is no longer in service. She was doing tax returns for a bunch of truckers that worked for a trucking company. We will do the due process and they will have to pay back money to IRS. But we will also report her.

So sad.

Linda, EA

[taxea]

The refundable AOC has encouraged a lot of scams which escape IRS notice at least for a couple of years. Sort of like an earned income credit for taxpayers who have no young children, or a way of fattening up refunds for taxpayers who have children but want a little more. Doing returns on some tax software for a taxpayer but labeling them as self-prepared is a way to get around registration and all that. These folks move about a community every couple of years (from one side of town to another, usually using a made up name since it is not on the return). Not a whole lot we can do about it, though. None of us want to snitch out the taxpayer, do we?

Yes some of us do...you call this person a tax preparer...I call this person a crook who should be reported to the IRS because she/he gives us real tax preparers a bad name!!!
Ocean send me the info if you still have it and I will be happy to whisper in the ear of Uncle Sam

[oceanlovin'ea]

oh, I don't mind reporting her. I will do it next week. Got to get through these tax returns first but you can be sure I will send the information in.

Linda, EA

[taxea]

oh, I don't mind reporting her. I will do it next week. Got to get through these tax returns first but you can be sure I will send the information in.

Linda, EA

Good girl...I highly applaud any preparer who isn't afraid to turn in a crook.

[Roberts]

JMO but I'd bet if you asked, the preparer thought they were doing the client a favor and by "going the extra mile" they'd have a client for life.

Or until the IRS came calling.

[taxea]

JMO but I'd bet if you asked, the preparer thought they were doing the client a favor and by "going the extra mile" they'd have a client for life.

Or until the IRS came calling.

I don't understand how anyone could think they were doing the client a favor by padding their returns.
1. if IRS audits the return the TP is the one that pays the penalties and interest
2. TP rarely goes back to the preparer for a refund...she probably wouldn't give a full refund
3. Frequently no one goes after the preparer.

However the client is as much at fault for not reviewing the return before it was filed.