Filing income taxes sounds simple, but there are numerous ways that it can go wrong. A small mistake on your tax returns can lead to months of investigation from the IRS and thousands of dollars in penalties. The consequences of innocent mistakes on your tax returns are bad enough, but you can face charges in federal court for intentionally falsifying your tax returns. If you do a Google search about tax fraud, you will probably find news stories about celebrities who got into legal trouble for attempting to conceal millions of dollars in assets or wealthy business people who lied in order to claim huge tax credits for which they were not eligible. The tax fraud cases that make the news involve huge sums of money, but if you are part of the 99 percent, investigations by the IRS into your tax activity can lead to criminal charges, too. What about the tax preparers who, in exchange for a modest income, help taxpayers of all income brackets file their tax returns? Whether intentional misstatements on a tax return can lead to criminal charges for the taxpayer, the tax preparer, or both depends on the details.
If you are an accountant and you are under criminal investigation for false information on your clients’ documents, contact a Texas white-collar crime lawyer.
Is It the Tax Preparer’s Responsibility If Taxpayers Lie on Their Income Tax Returns?
It is possible to file income tax returns with or without the help of an accountant or professional tax preparer. Whether you file your tax returns by yourself or hire an accountant, you sign your tax returns to certify that the statements are correct to the best of your knowledge. Therefore, it is your responsibility if there are errors or intentional omissions on your tax paperwork.
If the tax preparer knowingly participates in the taxpayer’s plans to lie to the IRS, they can both face criminal penalties. Conspiracy to commit tax fraud can happen at any income level, although the bigger the numbers, the more likely the IRS is to get suspicious. If you can prove that you acted without criminal intent and reasonably believed that the information your clients provided was true, you can avoid a conviction.
What If Tax Preparers Defraud Their Clients?
Last year, a Kennedale tax preparer was convicted of ten counts of tax fraud for submitting fraudulent tax returns on behalf of his clients, causing the U.S. treasury $2.6 million in losses. The defendant made false statements on several hundred tax returns that he filed over a period of several years. The clients testified that they presented only true information to the tax preparer and that he falsified their tax returns without their knowledge; therefore, the clients did not receive criminal charges.
Contact the Law Office of Patrick J. McLain, PLLC About Criminal Defense Cases
A Dallas criminal defense lawyer can help you if you are under criminal investigation in the context of your work as a tax preparer. Contact the Law Office of Patrick J. McLain, PLLC, in Dallas, Texas, to discuss your case.