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July 9, 2021

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Tax preparers could face investigation if reported to the IRS

If a taxpayer has concerns that their Texas tax preparer did not properly complete their obligations as a tax professional, the concerned person may approach the preparer in hopes of gaining answers. In some cases, a mistake or misunderstanding may be easily cleared up. In other cases, a taxpayer may suspect the preparer of wrongdoing and report the professional to the IRS. As a result, the preparer could come under investigation.

Unfortunately, an investigation by the IRS can be a difficult matter for any tax preparer to handle. Even in the event of a minor error, the preparer may need to take extra time and put in extra effort to ensure that the matter is handled appropriately. In some cases, if the IRS believes a complaint warrants a criminal investigation and possible charges, the situation becomes much more serious.

Some reasons that a taxpayer could feel the need to report a tax preparer for questionable practices include the following:

  • Suspecting that the preparer made unnecessary or unauthorized changes to a tax return
  • Suspecting that the preparer omitted information or included falsified information
  • Suspecting the tax preparer of misdirecting refunds
  • Suspecting the preparer of using false credits, filing status, expenses, or other information to generate a higher refund

It is entirely possible for a taxpayer to be mistaken about these suspicions, but if the IRS feels the need to follow up with a report, a tax preparer may be in a situation in which he or she needs to defend against allegations. Fortunately, these professionals have the right to understand the charges, the evidence, and other information relating to the investigation. If formal charges do result, working with Texas attorneys experienced in such defense may prove useful.

Taxpreparer Investigations