Deducting the Home Office - It's worth your...
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It's worth your time to learn about the legal, financial and tax consequences of
the promotion or preparer you are considering investing in before giving them
Return Preparer Fraud generally involves the preparation and filing of false
income tax returns by preparers who claim inflated personal or business
expenses, false deductions, unallowable credits or excessive exemptions on
returns prepared for their clients.
Preparers may also manipulate income figures to obtain fraudulent tax credits,
such as the Earned Income Tax Credit.
In some situations, the client or taxpayer may not have knowledge of the false
expenses, deductions, exemptions and credits shown on their tax returns.
However, when the IRS detects the false return, the taxpayer must pay the
additional taxes and interest and may be subject to penalties and criminal
prosecution. In other words ultimately, regardless as to whether you know what
was on the form or not, you are responsible for the claims made on your return.
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