tax scams

Tax Preparation Scams

“In this world,” Benjamin Franklin once wrote, “nothing can be said to be certain except death and taxes.” Franklin never encountered the 9,834-section Internal Revenue Code that Americans must abide by, otherwise he could add annual tax hassles to the list of life’s certainties. A cottage industry of tax-preparation services has sprouted since Franklin filed his final 1099. In 2007, the most recent year for which U.S. Census data is available, tax preparers reeled in $5.25 billion in receipts. With that much money changing hands -- in addition to even more income, charitable donations and the other tax write-offs preparers are trusted to monitor -- the potential for fraud and...