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Is Your Client One of the IRS Dirty Dozen?

Is Your Client One of the IRS Dirty Dozen?
February 24, 2017 Judith Cassis


Is Your Client One of the IRS Dirty Dozen?


It’s tempting. Many taxpayers do it because they assume the IRS has so much to do they’re not going to be noticed. They are listed with the IRS Dirty Dozen. However, if your clients think they can cheat on tax returns while the IRS turns a blind eye, it’s your job to share the cold hard truth.

View the 2017 Dirty Dozen list here.

Falsely inflating deductions or expenses is listed on the 2017 IRS Dirty Dozen list of tax scams. It may result in paying less than is owed or receiving a larger refund but it’s also a crime. False reporting may also result in insignificant penalties if the taxpayer gets caught. Depending on the extent of the falsification, taxpayers may be subject to criminal prosecution and brought to trial.

Advantages of Using a Tax Professional

The majority of taxpayers report honestly and accurately, especially those working with tax professionals. There are, however, those who try to beat the system by overstating deductions such as business expenses, charitable contributions, earned income tax credit, or child tax credit.

And be assured the IRS isn’t looking the other way.

Each year, automated systems become more efficient. Most IRS audits are generated this way. The IRS can normally audit returns filed within the last three years.

Keep Your Clients Informed

If substantial errors are identified or fraud is suspected, additional years can be audited. There is no way to entirely avoid an audit, but preparing an accurate tax return is your clients’ best defense.

Other issues you may come across with clients are tax evasion, willful failure to file a return, or Identity theft. Be sure your clients are informed, and to do that, be sure YOU stay informed. Ending up on the IRS Dirty Dozen infraction list could cost both of you.

So how do you handle this?

IRS Solutions tax resolution software and Installment Agreement software are just a couple of the products available to service your tax preparation business. Keep your client’s name off the list and keep income rolling in year round.

Click Here for information: https://www.irssolutions.com/ and be sure to get our FREE Tax Resolution Pricing Guide.

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