It is a crime to knowingly prepare a false tax return. Many return preparers are not aware of the severity of civil and criminal penalties for a false tax return. Not only can a CPA lose the ability to represent their client to the IRS, but the CPA can lose their CPA license and potentially go to prison. Every tax year, the IRS publishes various stories about how return preparers and their clients go to prison for willfully submitting false tax returns. This course will discuss the ways that the IRS investigates bad return preparers. You will also understand the difference between simple mistakes versus a criminal act. The course helps return preparers know what to do if they are being investigated for a false tax return, including if their client is under criminal investigation. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.
Learning Objectives
After attending this presentation, you will be able to...
- Understand the role of IRS in investigating false tax returns
- Know the common statutes used for prosecuting false tax returns
- Understand how preparers of false tax returns are discovered
- Understand the common schemes by return preparers in preparing false tax returns
- Know the common defenses used by return preparers in shifting blame
- Identify the steps an investigation takes from its inception to a trial
- Know how a federal judge evaluates the criminal sentencing of a bad return preparer
- Understand the best practices for return preparers if a false tax return is suspected
- Review case studies of return preparers that were sent to prison
Major Topics
The major topics covered in this class include:
- How the IRS catches bad return preparers
- The difference between simple mistakes and criminal acts
- What to do if your client is being investigated for tax crimes
- How to protect yourself if you are accused of preparing false tax returns
