The IRS maintains a prosecution against those who commit fraud to the federal government and since we are close to reporting our taxes for the year 2021, we present this article to point out that there are thousands of tax preparers in the country, which forces us to search for information and learn more about our preparer.
Here are some cases of tax preparers who have been convicted of federal tax fraud.
Between 2013 and 2017, the firm Wells & Rush Tax Service, prepared more than 6,000 tax reports that falsely claimed more than $ 3 million in refunds for their clients. Wells & Rush Tax Service received more than $1.2 million in fees from their clients, which was received directly from their clients` refunds. In many cases, customers were unaware of how much they were actually being charged, which was often more than $ 500.
Wells prepared tax returns for their clients from 2013 to 2018 claiming phony filing status, tax credits, education credits and fuel credits, among others, to inflate federal refunds. In addition, they also falsified their own tax returns by not reporting their full earnings for tax years 2014, 2015, 2016, and 2017. In 2018, they did not file their own federal tax report. Additionally, from 2012 to 2017, they also falsely claimed fuel credit and incorrect filing status from American Opportunity Tax Credits.
In May 2017, after being notified that they were the subject of an investigation and having received an appointment with the IRS to review the records, Wells & Rush Tax Service, intentionally set the offices on fire, destroying all the records of both their clients, as well as their financial statements and computers. Shortly after their arrest in the summer of 2019, it was established that a second fire intentionally destroyed the RUSH documents.
In their recent sentencing, the Court found that the defendants had obstructed the administration of justice and that there was "too much fire to judge them properly" ordering Wells to serve one year under judicial supervision and pay $ 3,373,595 in restitution.
Another case that we can mention is what happened in Gadsden, Alabama. Tax preparer Jamichael D. Whiteside, 37, pleading guilty to preparing false tax reports for himself and his clients.
Between 2016 and 2019, Whiteside prepared tax returns for many clients at ZJ Tax Services. He falsified payments for dependent care, education expenses, donations, and fabricated losses from non-existent businesses. Additionally, he reported less personal income from him in 2016 and 2017. Mr. Whiteside caused a federal tax loss of $ 140,000. Make sure your tax preparer is very professional in his/her work.