Fraudulent Preparers
We all encounter them, clients who have been victimized by unscrupulous tax preparers and want to know how to report them. The IRS has forms for reporting preparers who prepare fraudulent returns, don’t sign the return, or misappropriate a client’s tax refund. They are:
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Form 14157 – Complaint: Tax Return Preparer
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Form 14157-A – Tax Return Preparer Fraud or Misconduct Affidavit
If the preparer is working in California and did not sign the return, you can go on the CTEC website (www.ctec.org) and on the home page click on “Did Your Tax Preparer Sign” and you can report the preparer online. The FTB has two badge carrying officers that follow up on CA tax preparers that are not registered with CTEC. The fine is $1,000 and the action is quicker than the IRS. Help clean up the industry; report these people.