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.
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About the Author: Lois Center-Shabazz is the author of
the award-winning book, Let's Get Financial Savvy! From
Debt-Free to Investing With Ease, and is editor of the personal
finance website, www.MsFinancialSavvy.com. Read more about
taxes in her book [click
here].
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