Thursday, June 5, 2008

Tactics Used by Dishonest Abusive Return Preparers

Dishonest return preparers use a variety of methods to formulate fraudulent and illegal deductions for reducing taxable income. These include, but are not limited to, the following:

Preparing fraudulent Schedule C, Profit or Loss from Business, claiming deductions for expenses that have not been paid by the taxpayer to offset Form 1099, Miscellaneous Income, or income earned from outside employment,
Including false and inflated itemized deductions on Schedule A, Itemized Deductions, for:
charitable contributions
medical and dental expenses
Claiming false Schedule E, Supplemental Income and Loss, losses
Claiming false dependents

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