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BAMAPHIN 22
04-13-2006, 06:27 PM
Maggie Loftus thought her day couldn't get any worse when IRS agents told her that her tax returns (http://www.srch-results.com/lm/rtl3.asp?si=77&k=tax%20returns) were being audited.

Then they told her that the paid preparer who had done her taxes was suspected of submitting dozens of false claims that boosted clients' refunds and defrauded the government of more than $8 million.
For her, the bottom line was expensive: more than $5,000 in tax repayments, plus interest and penalties.

"I was totally shocked that a professional tax person could have done something like this to me," says Loftus, a single mother (http://www.srch-results.com/lm/rtl3.asp?si=77&k=single%20mother) of three and former client of the preparer based in St. Paul. "I had no idea that there was anything that wasn't right."

Today, as paid preparers complete more than 60% of the individual tax returns filed by Americans, questions are increasingly being raised about the reliability of those preparers, as well as about the federal government's limited oversight of the tax-preparation (http://www.srch-results.com/lm/rtl3.asp?si=77&k=tax%20preparation) field.

A USA TODAY review of scores of federal court proceedings against alleged problem preparers found that thousands of taxpayers have been hit with repayment demands and penalties since 2001 as the IRS moved to recover millions of dollars in tax losses. The victims, some of whom offered a rare inside look at their tax woes, often include immigrants, military recruits and others unfamiliar with the tax system.

Many of the preparers have been accused of using improper deductions and credits to inflate the size of tax refunds (http://www.srch-results.com/lm/rtl3.asp?si=77&k=tax%20refunds) in apparent efforts to attract new clients and increase profits, the court records show. Others charged a percentage of the inflated refunds as their fees.

http://articles.news.aol.com/news/article.adp?id=20060413075509990017&cid=1976

Ohio Fanatic
04-13-2006, 08:25 PM
Very Interesting, but I don't understand why people don't just buy TAXCUT program and do it themselves, it's thorough and asks most same questions and tax preparer.

FinFan72
04-13-2006, 08:32 PM
I just do my taxes myself
i cant see paying someone upwards of $100 for something i can do myself for free
and i am $100 Richer :chuckle:

Muck
04-13-2006, 08:35 PM
<------TurboTax

Roman529
04-13-2006, 10:17 PM
I do my own tax stuff as well.

Metal Panda
04-13-2006, 10:49 PM
me too, got a 1000 dollar refund this year

lazareth
04-13-2006, 10:54 PM
i have only used a paid preparer twice...that was how long it took for my wife trust me to do it as she had always taken hers to HR Block (one of the biggest rip-offs IMO)