Some Philadelphia Area Tax Preparers Charged With Fraud

July 25, 2012

"If it sounds too good to be true, it probably is." It is an old adage, but it bears repeating. Unfortunately, a recent article in Forbes magazine reveals that many innocent taxpayers who think they are getting something good and having their taxes professionally prepared for a low price are instead becoming the victims of tax scams by trusting "unscrupulous preparers."

Although most tax preparers continue to run honest and legitimate practices, some are taking advantage of clients. Three professionals in the Philadelphia area alone were barred from continuing to offer their services. Although clients may have trusted the professional advice of these wrongdoing preparers, the taxpayers themselves are still on the hook for back taxes, interest and any associated penalties.

Taxpayers are ultimately responsible for the accuracy of their tax returns, so trusting a dishonest professional tax preparer could result in charges of criminal tax evasion or other tax-related criminal offenses.

The Forbes magazine report detailed a number of improper deductions submitted by unscrupulous tax preparers on behalf of innocent taxpayers. These include:
- Claiming the first-time homebuyer credit
- Claiming an earned-income credit
- Claiming false dependents
- Claiming deductions for business expenses that did not qualify

The penalties associated with tax evasion and tax fraud are steep. A person found guilty of purposeful tax evasion can face up to five years in federal prison and a maximum fine of to $250,000. As a result, it is important to distinguish between an honest mistake and a willful violation, but any allegation of tax fraud or evasion must be taken seriously. If you or a loved one is charged with such an allegation, it is important to seek the counsel of an experienced tax attorney to help ensure that your legal rights are protected.

Article provided by The Law Offices of Mark J. Werksman
Visit us at www.werksmanlaw.com