The
Internal Revenue Service has several ways to find dishonest
tax preparation. They have a series of checks and balances
in their system that can signal fraud.
Why would you risk getting caught by the Internal Revenue
Service when the penalties are far, far greater than the
savings you will get for dishonesty by you or your tax preparer.
There are many ways your preparer can be dishonest about
preparing your tax return.
He or she can make it seem as though you have more business
or personal expenses than is true. Even going to the trouble
of presenting false receipts for equipment or furniture not
purchased. They can get you a credit where you do not deserve
one. They can make false claims about deductions you are
not entitled to.
Understand how tax preparers charge. This is another area
where you can get scammed. Tax preparers charge according
to the difficulty of your tax return. This should be a flat
fee. If a tax preparer charges you according to the percentage
of money you receive from your return or if they claim they
can get you a higher return than anyone else, run, as fast
as you can. This is not a good thing.
You have heard this in other articles I have written, but
I will say it over and over. You are responsible for every
item that goes into your tax return. You will be heavily
fined and penalized for dishonesty in your tax return. So,
check your tax return carefully. If there is something you
don't understand, ask your tax preparer to explain it.
Be sure your preparer signs your return
and gives you a copy of the return.
Ask for a referral from a satisfied customer, before using
a tax preparer.
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal finance book,
Let's Get Financial Savvy! ISBN #0971979502.
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