04 Dec TAX PREPARER GOES TO JAIL!!!
So we hear of people who don’t pay the IRS that go to jail, companies that don’t pay the IRS get shut down; well now, how about tax preparer’s that file fraudulent returns that go to jail?
In California a local resident claimed to be a CPA and a former IRS Agent was sentenced to 21 months in federal prison for preparing and filing fraudulent tax returns. The person claimed he could get them “The Largest Refund…..Guaranteed!!!” All he had to do was LIE. He admitted he prepared and filed at least 245 false income tax returns that resulted in a tax loss over $1,155,000 for the US Treasury.
In Oklahoma City, a preparer plead guilty to preparing and submitting false income tax returns as well. The preparer and the client fabricated tax W-2’s and worked together to push the taxpayer’s refunds. Both plead guilty and both face up to 3 years in federal prison, $250,000 in fines, and one year on probation. This was their FIRST offense, but they did it for several years of tax returns. They cost the US Treasury over $40,000.
Last, but not least, in Florida, a lady plead guilty to theft of government funds while she deposited fraudulent refund checks in her own account (a HUGE no-no for a preparer). She had her client’s checks sent to her business, she deposited the checks, and used the money for personal expenses. She has to pay restitution of $327,521 and faces 10 years in federal prison.
Please, make sure that you look your tax preparer up to make sure they are in good standing with the IRS. You should always use only a CPA, EA, or reputable company to do your taxes. They should ALWAYS sign in the “paid preparer” section of the tax return.