Tax Office Warns Residents to Beware of Unscrupulous Tax Preparers

(Washington, DC) On the heels of a joint investigation of unscrupulous tax preparers with the US Attorney’s Office, the Office of Tax and Revenue (OTR) is reminding residents to be careful of tax preparers who claim inflated personal or business expenses, false deductions, unallowable credits, or excessive exemptions on returns prepared for their clients.

“We urge taxpayers to be careful in choosing a tax preparer,” said Sherryl Hobbs Newman, deputy chief financial officer for tax and revenue. “The taxpayer is ultimately responsible for the information on their return.”

In some cases, the client does not have knowledge of the false expenses, deductions and exemptions on their tax returns. However, when OTR’s Criminal Investigation Division detects a false return, the taxpayer must pay the additional taxes and interest and may be subject to penalties and criminal prosecution.

The agency reminds taxpayers to:

• Avoid tax preparers who claim they can obtain a larger refund than other preparers,
• Avoid preparers who base their fee on a percentage of the amount of refund,
• Use a reputable tax professional who signs your tax return and provides you with a copy for your records,
• Review your return before you sign it and ask questions about entries you do not understand, and
• Do not sign a blank return.