Tax Fraud of Tax Preparers

Last updated on October 21, 2022

Fraudulent tax preparers sometimes misuse the trust of taxpayers to file fraudulent tax returns on their behalf and run away with large refunds. Many times, they tempt taxpayers into filing false tax returns to claim large refunds. Whatever their method is, tax fraud is a crime punishable by law. To avoid falling into the trap of unscrupulous tax preparers, taxpayers must check the information on their tax return before filing it. After all, the ultimate responsibility of filing tax returns correctly lies with taxpayers.

Fraud by tax preparers made it to the IRS’ Dirty Dozen this year. Although most taxpayers are honest, a few use illegal methods to cheat the IRS. They file inaccurate information on their clients’ tax returns with or without their knowledge to claim false refunds.

There have been many cases of fraud by tax preparers. When the IRS discovers false tax returns, they trackdown the tax preparer who filed the returns. Eventually, such crimes lead to imprisonment, but for taxpayers it leads to complications.

To avoid falling into the trap of fraudulent tax preparers, taxpayers are required to check the Personal Tax Identification Number (PTIN) of their tax preparer and ensure that it is provided in the tax return to be filed. Taxpayers must never sign the return or let their tax preparer file it before reviewing it themselves. These steps will ensure that accurate tax returns are filed every time. It will also help taxpayers avoid being victimized by fraudulent tax preparers.