As the deadline for filing taxes is right around the corner, the IRS is urging Rio Grande Valley residents to take precautions against unscrupulous tax preparers.
Special Agent Ramsey E. Covington, who is in charge of the IRS Criminal Investigation’s Houston Field Office, said the IRS receives thousands of calls every year dealing with fraudulent tax returns.
“The tax season is prime season for bad tax return preparers and identity thieves to cause the public to become victims,” Covington said Tuesday, adding that the public should keep their guard up when receiving help on their tax returns.
For instance, earlier this year Hidalgo County resident Linda Lopez, owner of Premier Tax Solutions, faced nine counts of tax fraud and false statements.
“Her tax business reported a range of around 50% residential energy credit and nationally the range is about 1% of residential energy credit,” Covington said, further noting that 25% of IRS resources is dedicated to investigating tax fraud.
Lopez is accused of filing more than $460,000 in fraudulent tax deductions. On March 24, her attorneys notified the court that she intends to plead guilty, court records show.
The IRS is urging residents to shield themselves from unscrupulous tax preparers so they don’t fall prey to similar cases of fraud.
For instance, when looking for a tax preparer it is important to select someone who is available year-round and can assist with any issues regarding one’s tax return.
Covington stresses that residents ask their tax preparers to present their IRS Preparer Tax Identification Number (PTIN). All reliable tax professionals will have a PTIN number.
He also asked residents to be vigilant of “ghost preparers,” who do not sign the tax returns as a preparer.
“Usually, they do that because they want to hide their identity and put the blame on the taxpayer,” Covington said.
Residents should also be cautious when tax preparers promise a large refund.
“Those are some of the key red flags when they start putting information on the tax return that is not yours,” the special agent said. “Other items can include false dependents to try to enhance the earned income credit, as well as maybe put in an income of business loss so that the taxpayer can get more money using their earned income credit.”
If a community member wants to report a potential tax violation they can file an information referral. In the case of identity theft, one can file an identity theft affidavit. Both forms are found on the IRS website, www.irs.gov.
For those who want to file their taxes through an app, the IRS has provided a list of reputable apps they recommend people to use when filing their taxes.
