A Las Vegas tax preparer was sentenced to two years in prison for causing over $500,000 of tax loss to the IRS. The preparer engaged in the typical scam of reporting fictitious business deductions on client returns to inflate their refunds. Between 2014 and 2019, she estimated that she applied these false deductions to approximately 75% of the returns she filed. However, she also took the extra step of going to the IRS website and applying for and receiving Employer Identification Numbers for the fictitious businesses in order to make them appear legitimate. (www.8newsnow.com/news/local-news/woman-sentenced-to-2-years-in-prison-for-tax-fraud-that-cost-irs-more-than-500k/)
CPAs, get four hours of fraud CPE with our 2021 Fundamentals of Fraud Prevention & Detection Live Webinar. Click here for more information.