How To Report Potential Fraud From Tax Preparers

Report Tax Fraud How To Report Potential Fraud From Tax Preparers

How To Report Fraud By Tax Preparers

Everyone needs to file a tax return; it is the law. Paying taxes helps the government operate by having money to provide services and improve any infrastructure. 

Some people rely on tax preparers like H&R Block to file their tax returns. Tax preparers save their customers the time and effort of grappling with the bureaucracy of the IRS.

While most tax preparers ensure taxes owed are duly filed, some tax preparers do not. In these cases, they commit tax fraud. The consequences of tax fraud committed by trusted professionals can be devastating, and you may be liable for penalties and heavy fines.

If you suspect your tax preparer is commiting fraud, you should report them right away.

What is Tax Fraud?

Tax crimes can take many forms, but they mainly depend on the intent of the fraud by the taxpayer or the tax preparer. In some cases, fraudsters don't declare their entire income, while in other cases, they under-report it or claim fake deductions and expenses to lower their tax rates.

Criminal tax fraud is the act of dodging taxes with intentions to defraud the government. Tax fraud is a serious offense that carries a wide variety of penalties. This also applies to failed attempts to defraud the state, since the act itself is already considered a crime.

Tax fraud is not a victimless crime. It affects all of us. That is why it is important to know how to report tax fraud when you see it.

Fraud by Tax Preparers

People often utilize tax professionals to ensure their taxes are prepared and paid correctly. In some cases, the tax preparers will use their expertise to defraud the government or the taxpayer themselves.

If you suspect a professional tax preparer is committing fraud, it is important to report promptly. (You may even be rewarded for doing so.)

Why Should You Report Fraud by Tax Preparers?

Regardless of what kind of tax fraud you're talking about, it's best to report it as soon as possible. If you suspect that a tax preparer has committed this offense, you should immediately report tax preparer fraud to the IRS. There are many reasons why reporting these crimes is crucial, but there are two main ones that stand out:

You protect your own interests.If the tax preparer made the returns in error, you would be liable for tax fraud. That's because tax fraud can lead to severe consequences such as fines, loss of property, or even imprisonment. This means that if you don't report this offense, you're putting yourself and your family in danger.
The safety of society as a whole is at stakeWhen people don't pay what is due to them, they impose the tax burden on a few citizens paying their taxes.

How to report fraud by tax preparers on your own?

You can do this by contacting the Internal Revenue Service (IRS) and informing them of suspected offenses. You can report tax preparer fraud by filing Form 14242 or Form 14157, or Form 14157-A.

In filling the above forms, you can include the following information:

  • A tax preparer committed fraud by altering the tax returns without your consent.
  • You received a different copy of a tax return than the one filed at the IRS.
  • You received lower tax returns than what the IRS actually deposited in your account.
  • You received a tax return that contains false information about deductions and expenses.
  • The tax preparer refused to give a copy of the tax return.

How to report tax fraud using DoNotPay

If you want to report tax fraud but don't know where to start, DoNotPay has you covered. There are just five simple steps:

1. Open the DoNotPay Report Tax Fraud product.

 

2. Enter the business you would like to report for tax fraud.

3. Provide the details of suspicious activity and as much evidence as you can provide.

 

4. Confirm your contact information.

 

5. DoNotPay will automatically generate the official report and send it on your behalf. The IRS will contact you regarding cash rewards once the case is investigated.

Solve the fraud by tax preparers with the help of DoNotPay

As the process of reporting tax preparer fraud can be complicated, DoNotPay can help you make these reports. DoNotPay enables you to report taxes hassle-free and has these other advantages:

  1. Reporting a tax preparer fraud through DoNotPay enhances your anonymous status: the information you provide is shared with the IRS, and no one else can acquire it.
  2. It is fast: all reports submitted through DoNotPay are sent immediately to the IRS.
  3. As this process is already automatic, you don't even have to wait long on hold or talk to a representative at any of their offices. You also don't have to waste time filling in paper forms.

All you have to do is file a short letter containing your personal information, the tax preparer's name, their address, and other details when reporting fraud by tax preparers.

DoNotPay will provide you with an easy-to-understand questionnaire where you can enter all this information.

In addition to tax preparers, many other individuals in positions of authority are capable of committing tax fraud. Learn more about reporting tax fraud as it relates to:

What else can DoNotPay do?

DoNotPay is a cross-cutting service provider that goes beyond helping you report tax preparer fraud. Thanks to DoNotPay, you can also do the following:

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