The Tax Preparer business is a highly competitive endeavor. Besides offering the client lower or competitive prices, many tax professionals attempt to lure customers with the promise of higher tax refunds. The unsuspecting client is usually one who knows very little about a complex tax system, making them easy targets for a less than honest tax service.provider.

Fraud awareness

If or when fraud is committed it is often a result of the preparer filing false and inflated deductions, expenses, credits and allowances the client is not entitled to claim.

However, it is important to note that the client is ultimately responsible for what is presented on the income Tax Returns. It is therefore up to the client to be aware of what they are signing as this makes them complicit to any wrong doing and with serious consequences.

Promises, promises

While the lure of lucrative tax refunds can be tempting, be cautious of promises of big tax refunds where none previously existed. You can protect yourself by using well known and professional tax preparers who will certify that they have prepared your returns in keeping with the tax laws. If you are not careful you may get a temporary increase in refunds and the very strong possibility that you may, in the future, have to repay the excess with additional taxes and interest tacked on.

You could also be subject to prosecution and other penalties.

Educate yourself

There is no excuse for complete ignorance of tax laws and you can certainly take the time to educate yourself about what you may be legally entitled to.. As daunting as it may seem, there is simplified information you can read. Do not hesitate to ask tough questions.

If something seems too good to be true, it probably is. If you see an increase in tax refunds, question it. If your tax wasn't accurately done you may have to repay the excess with additional taxes and interest tacked on. You could also be subject to prosecution and other penalties.

Choose carefully

It is up to the client to ensure they choose carefully the person who will prepare their taxes.

Get references, check credentials and be a partner in the process. Try to avoid those who take a cut of your tax returns as payment instead of charging a flat rate. Sometimes it is easy to bury our heads in the sand and leave all the responsibility for our tax preparation to someone else. This way we have the unrealistic belief that we are exempt from any fall out if there is fraud.

Most tax professionals provide the best possible service to their clients. However, it is ultimately your responsibility to ensure that when you sign your tax forms, you are not an unwitting partner in a fraudulent scheme with the inherent repercussions.