{"id":3848,"date":"2020-03-17T09:49:23","date_gmt":"2020-03-17T13:49:23","guid":{"rendered":"https:\/\/keysolutions.us\/blog\/?p=3848"},"modified":"2020-03-17T09:49:24","modified_gmt":"2020-03-17T13:49:24","slug":"schedule-c-filers-take-note","status":"publish","type":"post","link":"https:\/\/keysolutions.us\/blog\/schedule-c-filers-take-note\/","title":{"rendered":"Schedule C Filers – Take Note"},"content":{"rendered":"\n

Remember It Takes Two to Tango – When You Sign Your Tax Return, You Are Attesting, Under Penalties of Perjury That Your Return Is True and Correct – Don\u2019t Become a Co-Conspirator<\/strong><\/p>\n\n\n\n

Let\u2019s take a look at three recent Department of Justice investigations into unscrupulous tax return preparers.<\/p>\n\n\n\n

Philadelphia Area Tax Preparer Creates False Business Losses <\/strong><\/p>\n\n\n\n

According to court documents and statements made in court,\nAbdoulaye Coumbassa owned and operated Abbi Tax Services and Accounting (Abbi\nTax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent tax\nreturns and related forms and schedules on behalf of his clients. By\nreporting fictitious businesses with false business losses<\/strong>, Coumbassa\nsought inflated refunds for his clients from the Internal Revenue Service\n(IRS). At times, Coumbassa included the fake business losses without the\nclient\u2019s knowledge<\/strong>. In total, Coumbassa caused a tax loss of $2.1 million\nto the IRS.<\/p>\n\n\n\n

In addition to being sentenced to 24 months in prison, U.S.\nDistrict Judge R. Barclay Surrick ordered Coumbassa to serve one year of\nsupervised release and to pay approximately $250,000 in restitution to the\nUnited States.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Georgia Tax Preparer Creates False Business Losses, False Business Gains, and False Tax Credits<\/strong><\/p>\n\n\n\n

The\nUS Justice Dept. announced that it filed a civil injunction suit seeking to bar\nWesley Adam Kroll from owning or operating a tax return preparation business\nand preparing tax returns for others. The complaint also seeks an order that\nKroll disgorge ill-gotten return preparation fees that he obtained through his\nalleged misconduct.<\/p>\n\n\n\n

The\ncomplaint alleges that Kroll operated three tax return preparation stores in\nAlbany and Moultrie, Georgia, under the names United Tax Service, American Tax\nService, American Tax, and Tax South. <\/p>\n\n\n\n

The government alleges that Kroll prepared tax returns claiming\nfabricated businesses and business-related profits or losses, and various false\ntax deductions and credits, including education, childcare, and earned income\ntax credits. The complaint estimates the lost tax revenue from federal tax\nreturns prepared by Kroll and his employees exceeded $1.9 million. According to\nthe complaint, the IRS took multiple steps to correct Kroll\u2019s unlawful\nbehavior, including conducting in-person educational visits with Kroll in 2012,\n2014, and 2015; issuing him warning letters in 2013 and 2016; and assessing him\nwith $182,500 in tax return preparer penalties. But, the government alleges,\nthese efforts have failed to curb Kroll\u2019s unlawful behavior.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Georgia Tax Preparers Shut Down for Improperly Claiming Tax Credits, False Business Losses, and False Itemized Tax Deductions<\/strong><\/p>\n\n\n\n

A federal court in Columbus, Georgia, permanently barred Stacy\nLee and Heather Lee from preparing tax returns for others and from owning,\noperating, or franchising a tax return preparation business. The court also\nordered Stacy Lee and Heather Lee to close their tax return preparation stores.\nStacy Lee and Heather Lee consented to the relief.<\/p>\n\n\n\n

According to the US Justice Department, Stacy Lee operated two tax\nreturn preparation stores under the names Fast Track Tax Service in Talbotton,\nGeorgia, and TimeLee Tax Service in Columbus, Georgia. Stacy Lee\u2019s daughter,\nHeather Lee, allegedly prepared tax returns at the two stores as well. From\n2013 to 2018, Stacy Lee prepared 3,728 tax returns and Heather Lee prepared\n1,116 tax returns, the complaint alleges.<\/p>\n\n\n\n

The government further claimed that Stacy and Heather Lee\nprepared false federal income tax returns, understated federal income tax\nliabilities, and improperly claimed tax credits in order to obtain inflated tax\nrefunds for customers. The defendants fabricated deductions for charitable\ncontributions, unreimbursed employee business expenses, and medical expenses;\nreported profits and losses for fictitious businesses; and claimed false\neducation credits, energy credits, and childcare credits. <\/p>\n\n\n\n

\u201cThe Tax Division will work with its IRS partners to shut down\nreturn preparers who claim improper or illegal deductions and credits for their\nclients,\u201d said Principal Deputy Assistant Attorney General\nZuckerman. \u201cTaxpayers should be vigilant so they do not file tax returns\nclaiming false deductions.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

Tax Planning Tip #1<\/strong><\/p>\n\n\n\n

NEVER<\/strong> sign a tax return without first reviewing it<\/strong>. You are ultimately responsible for what is reported on your tax return, even if the preparer included fictitious business losses to increase your refund or decrease the taxes you owe.<\/p>\n\n\n\n

Tax Planning Tip #2<\/strong><\/p>\n\n\n\n

Inflating business profits may sound counter intuitive as one may think that the taxpayer would be subject to additional income taxes, but some tax credits, such as the earned income tax credit, could result in additional refunds to the taxpayer by showing more business profits. <\/p>\n\n\n\n

Tax Planning Tip #3<\/strong><\/p>\n\n\n\n

Due to taxpayers filing false returns claiming tax credits, and tax preparers preparing false returns claiming illegitimate child care and tuition credits, the IRS is now requiring tax preparers to perform due diligence by asking questions and documenting the taxpayer\u2019s responses to the required questions in the IRS\u2019s efforts to combat tax fraud.<\/p>\n\n\n\n

Tax Planning Tip #4<\/strong><\/p>\n\n\n\n

When you engage an unscrupulous tax return preparer, you are increasing the odds that your return will be audited by the IRS.<\/strong> When the IRS identifies an unscrupulous tax preparer, it runs the returns prepared by that person through IRS computers looking for similarities. For example, if a preparer is claiming erroneous childcare or educational credits, the IRS computers will identify all taxpayers who have claimed those credits who used that tax preparer. <\/p>\n\n\n\n

Tax Planning Tip #5<\/strong><\/p>\n\n\n\n

Return preparer fraud is one of the IRS\u2019 Dirty Dozen Tax Scams<\/a> and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website<\/a> for choosing a tax preparer and has launched a free directory<\/a> of federal tax preparers. <\/p>\n\n\n\n

<\/p>\n\n\n\n

The three preparers discussed above is a very small sampling of the types of tax preparers to avoid. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers<\/strong>. Information about these cases is available on the Justice Department\u00a0website<\/a>. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on\u00a0<\/strong>this page<\/strong><\/a>.<\/strong> <\/p>\n\n\n\n

<\/p>\n\n\n\n

If you would like to discuss your business or personal tax planning<\/a>, tax preparation<\/a> and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601<\/a> today to make an appointment at our Exton PA CPA office<\/a> to discuss your situation. You can also schedule a consultation at Click Here<\/a>. <\/p>\n\n\n\n

Copyright \u00a9 2020 Keystone Financial Solutions, Inc.  All rights reserved. <\/strong><\/p>\n\n\n\n

BE SURE TO READ THE DISCLAIMER PAGE: Tax laws, IRS rules and regulations change frequently<\/strong>. Although we hope you’ll find this information helpful, this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher shall not assume liability for any losses, injuries, or damages from the display or use of this information.<\/strong><\/p>\n\n\n\n

About F. Bryan Haarlander, EA, CTRS:<\/strong><\/p>\n\n\n\n

Bryan\nHaarlander is an IRS licensed Enrolled Agent and who owns and operates a\nspecialized tax services firm serving clients in the western suburbs of\nPhiladelphia, PA, which includes the cities of Chester Springs, Coatesville,\nCollegeville, Devon, Downingtown, Exton, Frazer, King of Prussia, Paoli, Philadelphia,\nPhoenixville, Pottstown, Radnor, Reading, Wayne, West Chester in Berks,\nChester,  Delaware, Montgomery and\nPhiladelphia Counties, as well as clients in Delaware, New Jersey, New York and\nthroughout the continental USA. <\/p>\n\n\n\n

A Certified Tax Resolution Specialist, Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems. <\/strong><\/a><\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Remember It Takes Two to Tango – When You Sign Your Tax Return, You Are Attesting, Under Penalties of Perjury That Your Return Is True and Correct – Don\u2019t Become a Co-Conspirator Let\u2019s take a look at three recent Department of Justice investigations into unscrupulous tax return preparers. Philadelphia Area Tax Preparer Creates False Business […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[57,3],"tags":[132,69,73,63,33,34,21,64,71,31,72,66,23,41,65,32,40,39,67,68,38,70,151,37,36,35,150,42,28],"class_list":{"0":"post-3848","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business-strategies","7":"category-irs-tax-planning-ideas-tips-news","8":"tag-accuracy-related-penalty","9":"tag-audits","10":"tag-bankruptcy","11":"tag-bryan-haarlander","12":"tag-chester-county-cpa","13":"tag-exton-accountant","14":"tag-exton-cpa","15":"tag-f-bryan-haarlander","16":"tag-first-time-abatement","17":"tag-frank-haarlander","18":"tag-innocent-spouse","19":"tag-installment-agreements","20":"tag-irs","21":"tag-irs-tax-debts","22":"tag-irs-tax-payments","23":"tag-keystone-financial-solutions","24":"tag-offer-in-compromise","25":"tag-oic","26":"tag-partial-installment-agreements","27":"tag-penalty-abatement","28":"tag-philadelphia-cpa","29":"tag-reasonable-cause","30":"tag-tax-adviser-near-me","31":"tag-tax-blog","32":"tag-tax-expert","33":"tag-tax-planning","34":"tag-tax-professional-near-me","35":"tag-tax-resolution","36":"tag-west-chester-cpa","37":"entry"},"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9W9tf-104","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/comments?post=3848"}],"version-history":[{"count":17,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3848\/revisions"}],"predecessor-version":[{"id":3890,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3848\/revisions\/3890"}],"wp:attachment":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/media?parent=3848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/categories?post=3848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/tags?post=3848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}