While this is a cautionary tale, it’s certainly entertaining and worth telling. This story highlights the importance of doing your homework before entrusting someone with your financial information. I would guess the client also had to pay some additional taxes (it is still your responsibility to sign or not sign the return, attesting to the truth of the information reported on it).
A 36 year old female tax preparer named Marie Anderson gave false information to the IRS, and was sentenced to 2 years in prison in federal court. She had attempted to fudge information on a couple’s tax return so that they would receive a larger refund. The couple was retired and didn’t own a business, partnership or joint venture.
Anderson entered figures regarding their business income, business mileage, car and truck expenses with no documentation to show or information provided by the client. She had been preparing tax returns for the couple for 2 years prior. The couple received $4,955 as a refund for their 2010 return filed by Anderson.
Anderson was an employee of Four Seasons Finance and worked out of her home. Her sentence will include 1 year of supervised release and she is ordered to pay $99,786.64 in restitution.
It pays to make sure your tax preparer uses ethical practices before hiring them to do your taxes.
Don’t get caught up with a bad preparer. Check for a license, in good standing, and feel free to ask if he or she is insured, if he or she uses professional software, and how long he or she has been practicing.
If you feel you need a fresh set of eyes and ears for your tax matters, call today.