On July 1, 2021, a federal jury convicted a Maryland tax preparer of preparing false returns for three clients resulting in more than $1.1 million in fraudulent refunds. She is scheduled to be sentenced in September and faces up to three years in prison for each count. Notably, this is just one of several recent cases targeting tax preparers on the East Coast. With this in mind, local tax preparers who are concerned about facing scrutiny from the Internal Revenue Service (IRS) should consult with a Maryland criminal tax attorney promptly.
IRS Criminal Investigations (IRS CI) Appears to Be Targeting Unscrupulous Tax Preparers
Based on its recent case list, it appears IRS CI is targeting unscrupulous tax preparers in 2021. For example, IRS CI announced the conviction and sentencing of 10 tax preparers in July 2021 alone. These cases involve a broad range of charges; however, they all stem from tax preparers’ efforts to evade taxes—either for themselves or on behalf of their clients. While IRS CI conducts investigations nationwide, nine of these cases involved tax preparers in Maryland and other states along the East Coast.
Targeting unscrupulous tax preparers is a long-standing priority for the IRS. Fraudulent tax preparation services are on the IRS’s “dirty dozen” list of tax scams, and the IRS recently issued a warning to taxpayers about the risk of tax preparer fraud. While the IRS holds taxpayers personally responsible for the contents of their returns, agents know that unscrupulous tax preparers are responsible for a significant portion of all fraudulent income tax filings submitted each year.
What To Do if You are Investigated for Tax Preparer Fraud
If you find yourself facing an IRS CI investigation involving allegations of tax preparer fraud, what should you do? When facing an IRS CI investigation, it is imperative to:
- Preserve All Relevant Records – At this point, you must preserve all records that are potentially relevant to IRS CI’s investigation. Not only are you legally required to do so, but destroying records related to the investigation will raise questions in the investigators’ minds.
- Assert Your Legal Rights – You do not have to speak with investigators, and you do not have to voluntarily hand over any records from your practice. In order to protect yourself, you should assert your right to remain silent and your right to legal counsel.
- Contact a Maryland Criminal Tax Attorney – The most important thing you can do is contact a Maryland criminal tax attorney right away. Facing an IRS CI investigation is an extremely serious matter, and you will need to rely on an experienced attorney to help you avoid unnecessary consequences.
Contact Maryland Criminal Tax Attorney Kevin E. Thorn
Maryland criminal tax attorney Kevin E. Thorn brings well over a decade of experience in representing tax preparers in federal criminal matters. If you have questions or are in need of legal representation, you can call 240-235-5096, email ket@thornlawgroup.com or contact us online to arrange a confidential consultation.
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