Taxpayer's Criminal Liability for Tax Preparer's Fraud

For taxpayers, choosing a right tax return preparer is essential. Unfortunately, many people do not give much thought to the task of selecting a tax return preparer. From turbo tax's free filing (unless any additional schedule is required) to franchise's like HR Block, Liberty Tax; and abundance of various tax return preparers, taxpayers simply have too many choices.

Like the abundance in availability of tax return preparers, the tax fraud committed by tax return preparer is also on the rise. The tax fraud or misconduct by tax return preparer is so prevalent that the IRS has placed it on its "Dirty Dozen" tax fraud schemes. The tax return fraud is not limited to local tax return preparers, big names like Liberty Tax franchise's local owners have been banned, by the federal courts, to prepare tax returns for life.

Taxpayers remain liable for the information on their tax return even if the tax return preparer committed fraud without the taxpayer's knowledge. Apart from the tax return preparer being prosecuted; taxpayers can face both civil and criminal penalties.

Civil penalties may include, but are not limited to the following, additional interest charge on the amount owed, penalties for filing incorrect tax return, and/or penalty for owing more than $1000 during a tax year. Criminal penalties may include hefty prison terms and conviction of a felony on taxpayer's record.

Every taxpayer must remain vigilant against fraudulent filing of tax returns; research a tax preparer before hiring; and review the tax return for any inconsistent information or fraudulent or enlarged deductions before signing it.

At Singh Tax Services, all tax returns are prepared by going through multiple scenarios to reduce tax liability and ensure maximum tax refunds; all returns are reviewed by an attorney before they are filed. To make an appointment or for questions and inquiries, please contact Singh Tax Services at (661) 599-8884 or email us at singhtaxcenter@gmail.com.

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