|
For the second time, we’re conjuring up some of our past work with eerie insights into our tax system. Read along...if you dare.
👻 Ghostbusters 👻
Anyone who prepares a tax return for compensation must obtain a number (a Preparer Tax Identification Number) and put in on the tax returns they prepare and file. But some preparers disappear when it's time to comply with this requirement. This could come back to haunt taxpayers because ghost preparers may encourage taxpayers to claim tax credits and benefits for which they don't qualify. In some cases, they can even steal their refunds.
 We helped investigate a case that resulted in a St. Louis tax preparer being sentenced to 27 months in prison for preparing tax returns but not listing himself as the paid return preparer. Without the taxpayers’ knowledge, he opened bank accounts for them that he then used to collect his tax prep fees from clients’ tax refunds.
🍭 Trick or treat? 😈
Large tax refunds may seem like a treat, but sometimes they can be the result of a trick played by ghost preparers.
We found that over a two-year period, ghost preparers prepared more than 12,000 tax returns requesting refunds of nearly $180 million. All these returns used elements of a scheme that overstates withholdings. In this scheme, taxpayers input false income and withholding information when filling out a W-2 or other information tax returns (which the IRS uses to verify wages and withholding). Unscrupulous return preparers then instruct taxpayers to file the tax return electronically to get a substantial refund due to the large amount of withholding.
🐺 Howl at our hotline 🐺
You don't have to wait for a full moon. If you think a tax return preparer is doing something suspicious, let us know. It's our job to investigate certain types of misconduct by tax preparers (like if they steal your identity or part of your refund).
Having trouble viewing this email? View it as a Web page.
|
