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From The Stupid Preparer Files – Rerun of Former IRS Secretary Files Fraudulent Returns for Taxpayers
Here is another one for the “Stupid Preparer” files.
What do you really know about your tax return preparer?
If you hired Debra Windham of Chicago a former secretary with the IRS Criminal Investigative Division, your tax return might have been involved in a tax fraud scheme that resulted in a loss to the government of approximately $850,000. The government has filed suit seeking a permanent injunction against Ms. Wildham.
According to the complaint, Ms. Windham allegedly prepared tax returns for clients claiming bogus deductions and then applied for refund anticipation loans in her client’s name without their consent. In addition, as part of her scheme, she allegedly prepared two sets of returns, one she presented to her client and another return claiming the fraudulent deductions that she filed with the IRS. Ms. Windham then pocketed the additional refunds claimed on the returns.
Highlights From The Stupid Preparer Files
By Stacie Clifford Kitts, CPA
Here is my latest addition of the stupid preparer files. Again – mind boggling. This preparer tried to scam something as stupid and easy to track as buying a house. The thing that is most disturbing about this case, is the fact that this guy thought he could get away with it.
Today the Internal Revenue Service announced that it has successfully prosecuted James Otto Price III for falsely claiming the first-time home-buyers credit on a clients federal income tax return. Mr. Price faces up to three years in jail and a $250,000 fine.
The IRS warns potential fraudsters to beware as they have implemented technology that automatically searches for and identifies potential fraudulent claims. The IRS currently has 24 open criminal investigations and has issued seven search warrants related to the fraudulent use of the credit.
“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”
Taxpayers are reminded that even if they utilize a paid preparer, the taxpayer is still responsible for the accuracy of the return.
The IRS says:
“The First-Time Homebuyer Credit, originally passed in 2008 and modified in 2009, provides up to $8,000 for first-time homebuyers. The purchaser, however, must qualify as a first-time homebuyer, which for purposes of this credit means someone who has not owned a primary residence in the past three years. If the taxpayer is married, this requirement also applies to the taxpayer’s spouse. The home purchase must close before Dec. 1, 2009, to qualify, and the credit may not be claimed on the purchaser’s tax return until after the taxpayer closes and has purchased the home. Different rules apply for homes bought in 2008.”
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