Beware the Part Time Tax Preparer

If there is something people enjoy less than preparing their tax returns, it is hard to imagine. If you look to another to do the job, be very careful who you pick.

The internal revenue code is a beast of government inefficiency and confusion. I dare you to pull it up on the web and try to give it a read. I guarantee you will be suicidal by the fifth page or at least trying to pluck your eyes out. Heck, even most IRS employees dont understand it. In a study a few years back, an independent group found IRS employees gave out the wrong tax information to taxpayers 50 percent of the time! Former President Carter even called the code a crime against humanity. Hard to argue with that.

As we close in on April, many people will think about having a go at preparing their own taxes. Some will actually go through with the process. Most, however, will throw their hands in the air and look for someone else to handle the mess. This someone else is the infamous tax preparer.

Most tax preparers are good, honest people. CPAs, in particular, are also schooled in all things tax and can get your return prepared with the minimum of fuss. Unfortunately, non-CPAs can be hit and miss when it comes to providing a quality service. In fact, you really need to know who the person is and whether they are even remotely qualified to do your return. Dont believe me? Well, the indicted school bus driver/tax preparer may change your mind.

Yolanda White is a school bus driver in St. Louis. Well, she was. Apparently looking to make a little extra cash, she started offer tax preparer services on the side. While driving a bus full of kids around prepares you for many things, such as war, it really isnt helpful when it comes to the old 1040 form. Ms. White is finding this out the hard way.

On February 1, 2007, the Department of Justice was successful in obtaining an injunction barring Ms. White from preparing any further returns. She apparently had problems claiming the correct deductions and amounts for the same. The IRS audited 30 of the returns she had prepared out of 337 and found all over them to fraudulently claim deductions that had no business being claimed. Where a deduction could be claimed, she also had a habit of inflating the amount of the deduction well beyond the actual amount that could be claimed by the taxpayer. The IRS is now planning to audit the remaining 307 returns she prepared.

Preparing your taxes is pretty low on the totem pole of fun. That being said, make sure you use someone who is qualified to do it should you go in that direction.

Richard A. Chapo is with BusinessTaxRecovery.com - providing tax articles.

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