Bizarre Tax Crimes are More Common than You Think

To the average person, the tax crimes committed last year would likely seem outright crazy and bizarre. The truth is, however, that tax crimes, even the seemingly strange ones, get committed a lot more often than you might think. Some of them are willingly committed by taxpayers while others are committed by unscrupulous accountants. Have fun recounting some of last year’s most crazy tax crime stories, but at the same time, take these stories as a warning to be honest when filing your taxes and to hire an accountant you can trust!

Made-Up Kids

Both taxpayers and dishonest accountants have been known to invent children in order to collect credits and boost tax refunds. Just last year, an accountant in New York spent over a year in prison when he was caught creating pretend children, complete with their own fraudulent social security numbers, to help his clients bring in larger refunds and to help himself to a larger percentage of their “earnings.”

Double Trouble

Smart taxpayers always carefully look over the tax forms their accountants prepare to make sure all of the information is accurately presented. Unfortunately, even that smart strategy wouldn’t have worked for the clients of a New Jersey accountant who found himself in hot water last year. The accountant was showing one form, with honest information, to his clients, but sending out fraudulent ones full of unauthorized deductions and seemingly eligible for huge refunds, which he would likely collect and pocket.

On the Run

A California accountant was recently sentenced to almost two years in prison after he prepared more than a thousand fake tax returns. The refunds from these returns totaled over 7 million dollars, which the accountant pocketed. He then ran to Mexico and managed to hide out successfully for a while....until the police came knocking on his door.

While these stories might be fun to read, it’s not fun if something like this happens to you! Protect yourself by using only the best and most trustworthy tax professionals.

Friday, February 13, 2015