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February 12, 2021


IRS penalties possible if tax preparer makes a mistake

Some people may think that working as a tax preparer is an easy job that people only have to go to a few months out of the year. On the contrary, Texas tax preparers have to stay updated with numerous tax law changes that take place throughout the year and ensure that they have the right knowledge to properly file taxes. Additionally, tax season can see preparers working strenuous hours every day, and if a preparer makes a mistake, it is possible for him or her to face penalties.

Tax preparers have a lot to deal with, and on any given day, they may see numerous clients, each with vastly different financial situations. Unfortunately, it is not uncommon for errors to occur. While in many cases these mistakes are easily fixed and do not come to any detriment to the taxpayer, it is still important that taxes are filed properly the first time.

Some issues that tax preparers may want to double-check this tax season include:

  • The taxpayer’s name is spelled correctly on the return.
  • The bank account number associated with the taxpayer is correct on the return.
  • All necessary signatures are on the proper forms.
  • All mathematical calculations are completed correctly.
  • The Social Security number of the taxpayer is correct.
  • The proper credits and deductions have been taken.

Of course, tax preparers need to ensure that they watch out for any red flag that could cause a problem with a person’s tax forms. In the even that a tax preparer makes a mistake, it is possible that the IRS could suspect the preparer of fraud or intentionally trying to file false returns. If Texas tax preparers find themselves facing serious allegations from the IRS, they may want to ensure they understand their defense options.

Taxpreparer Investigations