Tax Return Preparer Fraud Victim?

[broehain61]

I went to H&R Block in 2011 to file for 2010. After my Dad left me approx $30,000 upon his death, taxes have been hard for me to do myself. After paying taxes on the money he left me, I was told I would still get ~$2,800 so I was relieved to have some help with paying bills. I signed off the papers, and I didn't think anything else of it. The middle of 2011 I was audited and the gov't said I owed them money. I have been hearing rumors of the H&R employee that filed my taxes being fired and arrested on tax return fraud. I received 2 notices, one from the State of Nebraska stating I now owe ~$2,880 and the IRS, a seperate ~$1,500. I have now looked over my return for 2010, seeing that this employee added things to my return, like that I own my own business and that I am the guardian of 2 children... without my knowledge, mind you. A.) What can I do to ensure that I do not have to pay this money back? B.) Get some sort of assistance with this type of fraud? C.) Ensure that the gov't/state is aware of what this person has done to me so that I may have these debts erased?! I am single, with no children, and I work hard for the little money I make. Most days I do not even have food in my stomach or money to pay my bills, let alone be faced with payroll lien. I am scared and I have yet to find any information on what to do. Also, I obviously can't afford a lawyer. Thanks.

[wal49]

The short answer is you pay up.

The IRS feels--rightly--that you have every opportunity to review the tax return as soon as you left the preparer's office. If yuo owe $4380 back because of a fraudulent return, then you had use of the money in the mean time.

[lundie]

If you signed the return you are held accountable...regardless of hiring a professional.

Now, with that said there is a possibility of having the penalties abated!

Hope this helps.

[hrafn]

Low Income Taxpayer Clinics

http://www.irs.gov/advocate/article/0,,id=106991,00.html

The Low Income Taxpayer Clinics (LITCs) serve individuals who have a problem with the Internal Revenue Service and whose income is below a certain level. LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or for a small fee. If an individual’s native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities.

Low Income Taxpayer Clinics are not part of the IRS but they receive partial funding from the IRS via the LITC grant program.

Taxpayer Advocate Service

http://www.irs.gov/advocate/

The Taxpayer Advocate Service is Your Voice at the IRS!
What we do, and how to contact us!
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. We help taxpayers who are experiencing economic harm, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should. Here are ten things every taxpayer should know about TAS:
Hope that you find the above enclosed information useful. 05/07/2012

[hanan]

Without your knowledge? You signed the papers indicating you had read them and they were accurate.

A. Nothing. You owe the taxes. HR Bloack MAY pay the interest and penalties if you had the audit protection, but they are in now way leaglly obligated to. The debt is yours and yours only.
B. Report it to the police
C. The debts will not be erased. The tax will always be due. You may manage a reduction in penalties and interest, but again, you signed it saying it was accurate.

A tax debt is always the debt of only the individual whose tax return it was. This is why you READ WHAT YOU SIGN. You signed the return which said you read it and that it was accurate.

[hob97]

" I have now looked over my return for 2010, seeing that this employee added things to my return, like that I own my own business and that I am the guardian of 2 children... without my knowledge, mind you"

While it is illegal for the preparer to add these, it is also YOUR responsibility to look over the return before you autorize it. By signing the return, you stated that it is true and accurate. You may have paid someone to prepare the return, but it is yu who signed it.

You can file a complaint with the IRS and, probably, the state's attorney general, aganst the preparer and H&R Block. This is a separate case, though, because you signed the return.

[edmondo93]

All of the answers you have received are basically true, but of no help.
I would start by going back to the H.R Block office and discuss the return with the supervisor of the office. Block is responsible for the work that their employees have done. They should help you fix the problem at no cost to you since you do have a cause of action against them. If they refuse to help then I would see an attorney to discuss the situation with them. There are many attorneys who charge based on what they save you.
The other problem I have is that you say that the $30,000 your Dad left you was reported on the return. Unless this was an IRA account or such it would not normally be income to you that would be reported on your tax return. I would suspect that if this is not income then your tax problem would disappear even though you need to file an amended return that only reports what should have been reported in the first place.

[cinnard]

A) Sorry, but you owe the money. You'd have had to pay it in the first place if it had been done right then.

B) If any of the amount you owe is penalties and interest, Block might cover that much. The amount that's tax is yours to pay.

C) These debts aren't going to be erased. See answer to A) above.

Always read through your return before you sign it. I can understand you'd feel secure with a company as large as Block, but read it anyway.

Both the feds and the state will let you set up payment plans to pay what you owe, you won't have to come up with it all at once.

Good luck.

[scirwode]

take those returns you had prepared by that employee to another tax preparer, one with some integrity and reputation in your community( like someone who has been in continual business for a number of years)
let them review your returns, the $30000 you inherited from your father is not taxable, except possibly in Neb but definitely not to IRS, you should never have paid any income tax on that money
when one dies with an estate, the estate pays the taxes, not the beneficiaries of the estate