Earlier today I posted my mixed opinion on regulating tax professionals. Joe Kristan has noted there are plenty of laws already on the books that tax preparers must comply with.
But the Bozos are out there. Take Georgia Gaines of Lake Worth, Florida. A helpful soul, Ms. Gaines’ clients were aided by over $1.1 million of invented deductions. All was well until the IRS found out.
Unfortunately, the IRS also looked at Ms. Gaines’ own returns. Somehow, $200,000 of income from her 2002-2005 tax preparation work didn’t appear on the return.
Ms. Gaines has now pleaded guilty to five counts of preparing false tax returns and five counts of filing her own false tax returns. Ms. Gaines will be sentenced in August and will have to make restitution and is also likely to find herself at ClubFed for just under three years (based on federal sentencing guidelines).