Category Archives: Tax Preparation

Fake Businesses, Phony Dependents: What Could Go Wrong?

Posted on May 17, 2015 by Russ

I’ve seen reports of Bozo tax preparers inventing deductions and dependents. This is the first time I’ve heard of a tax preparer inventing a business from scratch on a tax return. The results were good…for a while. Ramona Johnson was … Continue reading →

Posted in Tax Evasion, Tax Preparation | Tagged | 1 Comment

There Is No Tax Fairy (Yet Again)

Posted on April 27, 2014 by Russ

Joe Kristan has the story of two CPAs who told clients that there is a wonderful Tax Fairy, that mythical creature who turns income into deductions or credits through alchemy and magic. Unfortunately, the Tax Fairy doesn’t exist, and clients … Continue reading →

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Bozo Tax Tip #10: Email Your Social Security Number

Posted on March 23, 2014 by Russ

It’s time for our annual rundown of Bozo Tax Tips, strategies that you really, really, really shouldn’t try. But somewhere, somehow, someone will try these. Don’t say I didn’t warn you! We’re starting a week early because I want to … Continue reading →

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Regulating Tax Preparers Always Prevents Tax Preparer Fraud (Not True, of Course)

Posted on March 9, 2014 by Russ

I’m generally a supporter of the National Association of Enrolled Agents and its policies. However, I disagree with the idea that both the NAEA and the IRS have that regulating tax preparers will magically make preparer fraud go away. It’s … Continue reading →

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Don’t Try This at Home

Posted on November 24, 2013 by Russ

Thomas Thorndike was a tax preparer in Waterbury, Connecticut. I use “was” because earlier this year he was sentenced to six years at ClubFed for cheating on his own taxes and for helping clients obtain refunds using false deductions. Here’s … Continue reading →

Posted in IRS, Tax Preparation | 1 Comment

Pass the Popcorn, Please

Posted on November 20, 2013 by Russ

When I last wrote about Instant Tax Service it appeared that the end of that firm was upon us. After all, a judge ordered ITS to close shop because of a myriad of sins. ITS is appealing and is now … Continue reading →

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One Down, One to Go: DOJ Gets an Injunction, Asks for Another

Posted on October 20, 2013 by Russ

One of the more humorous (to me) aspects of the Loving case was hearing the IRS argue that it has no means of disciplining rogue tax preparers. That’s just not true. If I deliberately prepare a bad return, I can … Continue reading →

Posted in Tax Preparation | Tagged | 2 Comments

What If Your Tax Professional Vanishes?

Posted on August 20, 2013 by Russ

Yesterday, a new client called me. It seems that his tax professional (we’ll call her Jane Doe) vanished. She’s not answering phone calls (nor returning messages–and her voice mail is now full), nor returning mail, nor returning faxes. My client … Continue reading →

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Once Again, Registration of a Tax Preparer Doesn’t Stop Him from Bad Behavior

Posted on August 11, 2013 by Russ

With tonight’s season premier of Breaking Bad, it feels apropos to note a tax “professional” who is accused of bad behavior. The US Department of Justice filed suit against Michael Turner of San Diego. Mr. Turner is alleged to have, … Continue reading →

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Bozo Tax Tip #3: Use a Bozo Accountant!

Posted on April 9, 2013 by Russ

Here’s another Bozo Tax Tip that keeps coming around. The problem is, the Bozos don’t change their stripes. In any case, here are some signs your accountant might be a Bozo: – He’s never met a deduction that doesn’t fit … Continue reading →

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