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Ex-IRS Special Agent And Other Taxpayers And Preparers In IRS Hot Water


We are winding up the year and getting ready to head into yet another tax filing season.

Unless you have your own business, things can get pretty quiet this time of year, tax wise. So, just to keep you informed about what kind of shenanigans go on out in this wild world regarding people involved with taxes, I’m sharing a few examples of what not to do from one of my favorite industry sources,

Ex Special Agent For IRS Criminal Investigation Turns Criminal

This one really gets me. You just never know who you can trust to prepare you taxes. Well, you can certainly trust all the preparers at our firm. If there is even the slightest hint of something off, or anything off-kilter that turns up while deciding to bring a preparer onto our team, they never make it to our team. But, one would not be suspicious of a preparer who was a former special agent for IRS Criminal Investigation. You might just think you hit the jackpot!

This tax preparer would know all the legal ins and outs and would be able to take taxpayers to the very edge of legality and reap the greatest rewards. You wouldn’t necessarily be wrong about that either.

I don’t actually know if she was preparing taxes for others in her place of residence in Sacramento, CA. But she did prepare her own taxes and has, according to the article I read, “been sentenced to 51 months in prison for filing false returns, obstruction of justice and stealing government money.” In addition, this particular special agent is pretty darn smart. She holds an MBA. So here’s what she did with that brilliance. She “filed six false returns: three personal returns for 2009, 2010 and 2011 and three in the names of trusts she created for years 2010 and 2011. On her personal returns, she fraudulently claimed head of household filing status, listed false dependents and claimed deductions for education expenses to which she was not entitled. She also obtained a fraudulent legal separation decree from the California Superior Court for Yolo County so that she and her husband could claim undeserved rental real estate loss deductions. On a trust return, she also falsely claimed to be paying wages to her mother and sister to care for her son and father.”

If she did prepare your taxes, you won’t be able to use her in the New Year. And you just might want to have your last year taxes double-checked by a new CPA that you hire.

A Preparer In Pensacola Goes To Prison

On the east coast in the Florida Panhandle another tax preparer gets to spend close to four years behind bars and will also have to pay the IRS $182,877 in restitution after being found guilty of preparing false returns. According to the article, this criminal preparer worked at “Select Tax Service and prepared and filed false federal returns between 2013 and 2017 by fraudulently increasing or decreasing clients’ income to maximize refunds. In May, a jury convicted him of 18 counts of preparing false returns.”

Resident Of Galva, Ill, Now Resides in Prison

Just another resident of another U.S. town now gets to spend time in prison because he was trying to pave his way to riches by manipulating his tax returns. Apparently this dude, “underreported or failed to report income he received from customers of his paving business in 2009, 2010 and 2011. Rather than deposit customers’ checks, he cashed the checks and failed to report the income on his returns. This business man failed to report $112,439 for 2009, $429,064 for 2010 and $579,261 for 2011, avoiding $384,206 in tax for the three years.

The court ordered him to pay $566,571 in taxes and interest to the IRS for tax years 2009, 2010 and 2011. He was also ordered to pay $566,571 in unpaid taxes and interest to the IRS and ordered to serve three years of supervised release following his prison sentence.”

Don’t Be Tempted To Try To Outwit The IRS

We all have a responsibility to file pay our taxes. We may not like it, but we must do it or suffer the consequences. There have always been legal ways to minimize the amount of taxes you pay. For most regular folks though, the loopholes are limited, and we simply have to do the best we can. If you suspect your tax preparer of any monkey business, find someone new. Give our office a call. It’s always better to stay on the good side of the IRS, because they will eventually find you and fine you.

Taxation Solutions, Inc.

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