Fraud

[Gary]

I prepared returns for two resident aliens today. Last year they went to a preparer that filed schedule As for them. Itemized deductions were almost equal to their AGI so they received all their withholdings back. She put down huge medical expenses, employee business expenses and personal property tax. These were young people that work at the Marriott and of course did not have these expenses. i told them that they should not be surprised to get a letter from the IRS, and if they do, we can amend the return for them. I also told them to tell all their friends not to go to this preparer.

Do any of you think that this preparer should be reported to the IRS? I would not feel comfortable doing this.

Gary

[dyne]

Fraud

Yes, I would report the tax preparer and both of these taxpayers to IRS. A letter to IRS
would be best and you do not have to sign your name.

[Gary]

Why

Why would I report these two young kids? They are not from the US, they are here to work, and they don't know our tax system. They were taken advantage by this tax preparer.

[dyne]

Fraud

You could provide the names, etc. of the two taxpayers as examples of bad returns prepared by the tax preparer so IRS can take action against the tax preparer.

[joanmcq]

Unfortunately, then you are reporting your clients, which is not in their best interest. You should amend their prior return if they agree to it. And definitely recommend that they do so.

[erchess]

Unless there has been a change since I entered the

business, tax professionals are barred from reporting any taxpayers to the IRS no matter how we gain knowledge of the situation. I know nothing about the rules for reporting other professionals. I think what I would do in this case is call or write to what used to be known as the Director of Practice and pose a hypothetical question. I would guess that unless the preparer is Enrolled or falsely claiming to be enrolled, the answer will be to let enough returns such as you saw get caught and in due time the wheels of justice will get to the preparer. For one thing, at some point a client will offer up the preparer in exchange for his own skin.

[ChEAr$]

To report or not to report;

business, tax professionals are barred from reporting any taxpayers to the IRS no matter how we gain knowledge of the situation. I know nothing about the rules for reporting other professionals. I think what I would do in this case is call or write to what used to be known as the Director of Practice and pose a hypothetical question. I would guess that unless the preparer is Enrolled or falsely claiming to be enrolled, the answer will be to let enough returns such as you saw get caught and in due time the wheels of justice will get to the preparer. For one thing, at some point a client will offer up the preparer in exchange for his own skin.

that may be the question, but.....

we are not barred from reporting taxpayers to the IRS. True, most don't; overwhelming most of
us don't, but there's no law agin it.