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  • Writer's pictureKathryn Bruns, CPA

Too large of a tax refund is likely to be too good to be true.

Updated: Oct 9, 2019

Please don't be enticed by the claims of producing higher refunds. These claims may be fraudulent. Make sure you choose an honest preparer who will advocate for you but within the boundaries of the law (I do!). See the piece below for what's out there and PLEASE be careful.

Federal Court Shuts Down Orlando Tax Return Preparer

On September 6, 2019, the Justice Department announced that the United States District Court for the Middle District of Florida had permanently barred defendant Gladys Quiles from preparing federal tax returns for others.

The complaint filed by the United States alleged that Quiles did not sign the tax returns she prepares and does not identify herself in any way on the returns, instead operating as a "ghost preparer." The complaint further alleged that she repeatedly and continually prepared tax returns that understated liabilities and overstated refunds. Her alleged schemes included fabricating business income or expenses reported on Schedule C, Profit or Loss from Business, and deducting false employee business expenses on Schedule A, Itemized Deductions.

The injunction was entered against Quiles by default because she failed to defend against the government's allegations. The complaint alleges that Quiles lives in Orlando, Florida.

Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2019 and taxpayers seeking a return preparer should remain vigilant. Ghost preparers neither sign the returns they prepare nor include their Preparer Tax Identification Number (PTIN) on those returns, despite their obligations to do so. The IRS has cautioned taxpayers about ghost preparers because ghost preparers can hurt honest taxpayers who are simply trying to do the right thing and file a legitimate tax return. The IRS has information on its website about selecting a return preparer and has launched a free directory at https://irs.treasury. gov/rpo/rpo.jsf of federal tax preparers.

Accounting and income tax is NOT magic

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