IRS says tax fraud is a growing problem
With just about a month left to file taxes, fraud continues to be a big concern.
In just the last week, there have been at least two new reports to the Columbia Police Department. And according to the IRS, it is a growing problem.
Wednesday, the IRS told Abc 17 News fake tax returns resulting from identity theft is one of the biggest problems it is seeing right now.
And it may take awhile to fix the problem by the time the victims find out, Mike Harrison with the Mid-Missouri Better Business Bureau said.
“The only way though that you will find out about it is when you go to file your tax return, you will get a letter from the IRS saying that a tax return has already been filed using your information,” Harrison said.
A federal court of appeals struck down IRS rules that required tax preparers to pass an exam and complete continuing education requirements. An official with the IRS said if you pay someone to file your taxes, the only thing they are required to have is a “Preparer’s Tax Identification Number.” But anyone can register for an ID number on the IRS website, no qualifications needed.
Some states are taking it upon themselves to regulate tax preparers. But the state Department of Revenue said Missouri does not.
The owner of Liberty Tax Service said all of its employees have to go through extensive training and testing through Liberty Tax. They also have to meet a number of practice hours and file many practice tax returns before helping a customer. Employees also have to renew their identification number and continued education.
Amy Jones, the manager at America’s Tax Office, said her employees have to go through a training program as well and take 15 hours of continuous education a year.
“I try to do as much updating during the year as possible,” Jones said. “And a lot of times, you can’t really update until they come up with new regulations so we’re scrambling to get all those updates.”
The IRS said other red flags are if the tax preparer bases your payment price on the size of your refund, or if you cannot contact them after April 15.
The IRS has a new directory of qualified tax return preparers on its website. You can search the ones in your area here.
