Abusive Return Preparer (irs.gov)
Taxpayers should be very careful when choosing a tax preparer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.
Tax fraud investigation includes:
- Substantial amounts of personal expenditures claimed as business expenses
- Omissions of income, or knowingly changing your income
- Unexplained increases in net worth substantially, especially over a period of years.
- Assets placed in others' names
- Amounts on return not agreeable with amounts in books.
- Deductions were falsely claimed.
- Keeping two sets of books, or no book at all.
- Cooking the books, commonly known as falsifying the amounts in books and records.