The Circular 230, Section 10.31 of the Internal Revenue Service, a law which governs tax preparers and professionals, says that no preparer should receive, negotiate or endorse a check addressed to a client by the federal government as a reimbursement payment or tax debts to be paid. This includes accepting checks from a customer or depositing it into accounts that belong or are associated to the tax preparer.
In fact, a trucker friend visited us a week ago; will call him José. He requested our assistance in a problem because he was a victim of a “TAX PREPARER”. According to José’s story, this “TAX PREPARER” has an office in Downey, CA. She is not a preparer but a ghost preparer, because she does not have a preparatory license. She is a woman of rather an old age with a great capacity to convince truckers. She makes them feel very confident, like she will be someone who will protect them. In addition, she asks her clients to invite her to lunch or to give her tips, even to lend her money. On the other hand, she tells them that she worked for many years with the IRS and can represent them, which is false.
The following actions are clear violations of the tax law:
1-This “PREPARER”, without having a license to prepare taxes, helped José to prepare his tax report from 2015. As a result, José had an IRS tax debt of $4,500.
2-She asked José to write a check for $4,500 addressed to her name, the “preparer”, because the only way to pay such taxes was through her bank account (bank account in the name of the alleged preparer), which our client innocently did.
3- Two months later, José received a call from the “preparer”, who told him that the IRS gave her a phone call and said that José had an additional tax debt of $2,500. To avoid further surcharges it was necessary to pay them immediately and he should deposit that amount into her bank account. And José quickly did it.
4 – Recently, José needed his IRS tax report for 2015, but the IRS informed him that there was no information about it, because the IRS did not receive his tax report for 2015. Clearly, this “preparer” did not send or pay José’s taxes to the IRS.
Once again, we suggest to our fellow truckers to investigate the tax preparers before hiring the services of such professionals.