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September 20, 2017


Three lessons for tax preparers from recent federal case

Four tax preparers are facing prison time for tax crimes connected to their tax preparation services. The accusations included putting together faulty tax returns and cashing in on fraudulent refunds. The Department of Justice (DOJ) discussed the case in a recent press release, noting that the government is coming down hard on those who break tax law in this manner.

One of the purposes of the notification is to deter others from making the same mistakes. Three lessons from this case that tax preparers throughout the country can use include:

  • The IRS is watching. The Internal Revenue Service (IRS) has a special unit tasked with investigating those who are accused of attempting to thwart the tax system. It is called the IRS Criminal Investigation (IRS-CI) and the DOJ states that its special agents should not be “underestimated.”
  • Penalties are serious. One of the four preparers noted above was recently sentenced for his crimes. He received a prison sentence of seven years and is required to pay over $1 million in restitution.
  • Get help. Those who are charged with tax crimes connected to tax preparation services are not alone. Legal counsel can help to craft a defense to these accusations.

Those who are accused of conspiracy, theft of government property or other tax crimes as a result of their tax preparation services should not let a simple mistake ruin their career. Contact an attorney to help defend your interests during a criminal investigation or civil tax issue. Your lawyer can tailor a defense to these accusation, helping you to avoid a possible conviction or even the charges if brought into the issue early enough. 

Tax Controversy