The Internal Revenue Services warns that taxpayers should be wary of fly-by-night tax preparers.
Special Agent Richard Myrland says it is important for taxpayers to pay close attention to the information on the documents they are signing even if they have a tax preparer. Around this time of the year agents are commonly seeing violations and errors on tax documents. Taxpayers may be more likely to visit certain tax preparers due to the potential of receiving an increase in refunds or promises that are advertised.
Myrland says, “Taxpayers should be asking questions about the type of forms they are signing, receive copies of everything, and know that a major red flag is being asked to sign a form before they have reviewed it.” According to Myrland, in suspicious circumstances return preparers are seasonal and will not disclose their identity number, know as the P10 number, on the submitted forms. This number keeps track of the preparer. Without the information, IRS agents note the missing number and assume that the taxpayer prepared their own taxes.
Frequently seen fraudulent activity includes inflating expenses, failing to report expenses and putting credits on returns. Taxpayers and preparers can be charged with a felony, five years in prison and the cost of prosecution. In 2022, the IRS Criminal Investigation Unit opened about 2,500 cases and recovered over $5.7 billion dollars in tax loss.
To ensure tax safety and lessen chances of fraudulent activity, taxpayers can research their preparer, ask around, or even investigate the business’s validity online.
Myrland has 28 years of experience in law enforcement and has spent the last 18 years with the IRS. Currently as Acting ASAC for the Atlanta field office, he oversees criminal investigations in Louisiana and Mississippi. The IRS Criminal Investigation Department is responsible for enforcing the criminal tax law, money laundering, and tax code violations.
