IRS Looks to Authority, Tech, and Funds to Fight Preparer Fraud

April 14, 2021, 8:45 AM UTC

The IRS is hoping expanded oversight authority, improved technology, and a bigger budget will help it slow a persistent problem: fraudulent tax preparers.

It’s a problem that has plagued the agency for decades: tax preparers who make false claims on taxpayer filings, which can let them pocket refunds or get paid to make tax claims that other preparers won’t. Recent cases highlighted by the Department of Justice Tax Division include allegations of fabricating business losses and falsifying income on hundreds, if not thousands, of returns.

Not only does fraud hurt the individuals who are victims of it, but the ...

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