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I suspect tax fraud, need advice

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Money Talk > Taxes

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I suspect tax fraud, need advice  Reply with quote  

For my '07 and '08 tax returns, we used a tax preparer that was referred by a friend. We didn't feel like anything was going on out of the usual and that is why we used him a second time.

Now in '09, we've moved away, and we use a new tax guy. He looked at our past returns and starts asking questions. He thinks that there are some fraudulent claims on our old tax returns. We want to rectify the situation but he says to wait until we get audited.

Should we just wait, or should we somehow try to fix this now? The friend that referred us to this guy is now being audited because he gave them some home energy related tax credits even though they didn't own a home. Looking on my old returns he did the same thing to us.

Is there a benefit to taking care of this now or waiting until the inevitable?

Thanks for your advice!

Post Thu Apr 15, 2010 2:19 am
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I read from Turbox tax site that the IRS is randomly checking those people who write off a lot of money on their taxes. I would just wait and see if your name pop up and if so, they will just nicely notify you in the mail which it had happened to me before. You can actually fix it over the phone when you call them. Good luck.

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Post Fri Apr 16, 2010 5:44 pm
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But what is the penalty?

Post Tue Apr 20, 2010 11:31 pm
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I'd suggest filing ammended returns, showing the correct information, paying whatever interest and penalties are necessary, and say the reason is due to errors made by your tax preparer. You don't need to go into any explanations or allegations of fraud or why the "errors" were made. Fraud is up to the IRS and the tax courts to determine if they should choose to do so. But just waiting to get audited is going to have you sitting pretty nervous for awhile, I would think.

I think that by filing your own ammended return, you're being proactive. I'd say your audit risk is pretty high if other returns done by this same preparer are being audited. If the IRS finds any funny business, they're going to want to look at everything this preparer has done.

It's your name on that return along with his. Even if you plead not knowing (which at this point you can't honestly do any more), it won't let you off the hook.

Unless, of course, you're a nominee for Secretary of the Treasury. Rolling Eyes

Post Wed Apr 21, 2010 3:52 am
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You can check on your tax contribution history, and if there are gaps then confronting the person you've worked with will be best. If you can no longer find the person, then you're on a dead end. You will need to pay for penalties for the periods your taxes are not paid.
Post Wed May 19, 2010 9:20 am
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Get in touch with your accountant  Reply with quote  

Get in touch with your accountant who files them for you asap. I have had such instances in the past, you really shouldn't be wasting any more time on this. Get it sorted quickly.
Post Fri Sep 17, 2010 6:48 am
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