Saw a story in today's local news. 36 charges of conspiracy to defraud the IRS and filing false tax returns were filed, with a maximum sentence of five years in federal prison, and a $250,000 fine if convicted.
Two things I found interesting.
They were investigated after an IRS computer program flagged their returns as suspicious. The program was designed to flag any tax preparer whose submitted returns for a particular year had a refund rate of more than 50 percent. The returns filed had a refund rate of 70-80% or higher during a three year period.
Second, the preparer would say “it’s your return and I can give you one of those charity things, but once you sign it, it’s you,” Preparer allegedly admitted she sometimes exaggerated a client’s deductibles, adding that she “felt sorry” for people who owed money, stating if a client gives her a $500 amount for expenses, she might add a ‘1’ in front of it. Preparer stated that she knows she is held to a higher standard, but she wants to help her clients,”
Two things I found interesting.
They were investigated after an IRS computer program flagged their returns as suspicious. The program was designed to flag any tax preparer whose submitted returns for a particular year had a refund rate of more than 50 percent. The returns filed had a refund rate of 70-80% or higher during a three year period.
Second, the preparer would say “it’s your return and I can give you one of those charity things, but once you sign it, it’s you,” Preparer allegedly admitted she sometimes exaggerated a client’s deductibles, adding that she “felt sorry” for people who owed money, stating if a client gives her a $500 amount for expenses, she might add a ‘1’ in front of it. Preparer stated that she knows she is held to a higher standard, but she wants to help her clients,”
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