Politics & Government

Warning: Don't Get Scammed By Fraudulent Tax Preparers

U.S. Justice Department informs citizens on possible pitfalls when hiring someone to handle income tax returns.

SAN DIEGO COUNTY, CA -- With this year's April tax deadline looming, the U.S. Justice Department urged the public today to avoid falling prey to dishonest return preparers who fleece their customers and cheat the government.

"Every year, thousands of federal income-tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,'' Acting Assistant Attorney General Ciraolo said.

Noting that every taxpayer is ultimately responsible for the contents of his or her return, Ciraolo warned the public to be wary of anyone who guarantees a refund or who claims to have a sure-fire way to reduce taxes.

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Specifically, the Justice Department advises taxpayers against:

-- Agreeing to deposit a refund directly into a preparer's bank account;

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-- Signing a blank return or a form, or endorsing documents without reading them first;

-- Using the services of a preparer who mischaracterizes clients' expenses; or

-- Hiring a preparer who fabricates business expenses or deductions, or who claims credits to which the taxpayer is not entitled.

Among the roughly 150 million returns filed in the United States in 2014, the Internal Revenue Service identified more than 2.1 million that claimed fraudulent refunds totaling more than $15.7 billion, according to the Treasury Inspector General for Tax Administration.

Last year, the Tax Division shut down more than 35 fraudulent tax-return preparers across the country. The defendants in those cases spanned the spectrum from large-scale franchises to small, independent return preparers, officials said.

--City News Service/File photo

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