The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18th federal tax filing deadline approaches. Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
"Taxpayers are responsible for what is on their return, even when it is prepared by someone else," said Deputy Assistant Attorney General David A. Hubbert of the Justice Department's Tax Division. "If your preparer asks you to sign a blank return, will not let you review your return before filing it, or is depositing your refund in a way that is not clear to you, consult the IRS's website to make sure you are not exposing yourself to trouble."
"Tax preparers contemplating filing false returns for their clients should know that our criminal prosecutors are prepared for the filing season too," said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division. "As the division's work this past year reflects, we have the expertise and resources to identify and hold preparers fully accountable for their criminal conduct."
Over the last year, the Tax Division has worked with U.S. Attorneys' Offices around the country to bring civil and criminal actions against dishonest tax preparers, seeking civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department's message has been clear: those who prepare fraudulent returns will face serious and lasting consequences.
An example of civil injunctions obtained by the Tax Division over the last year include a case in Michigan. On Oct. 5, 2021, a federal district court in the Western District of Michigan, permanently barred Stanley Meyer (dba I-Tax Services) and Rosa Linda Meyer (dba Su Casa Income Tax Service), husband and wife, from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity.
The Tax Division reminds taxpayers that the IRS has information and tips on its site (www.irs.gov) for choosing a tax preparer, has launched a free directory of credentialed federal tax preparers, and offers information on how to avoid "ghost" tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns for tax year 2021.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department's website.
An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found at www.justice.gov/tax/program-shut-down-schemes-and-scams. Anyone who believes that one of the enjoined persons or businesses may be violating an injunction should contact the Tax Division with details.
