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IRS Suspends CPA for Preparing False Tax Returns

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Washington, D.C. (February 5, 2010)

A CPA has been suspended for 12 months from practicing before the Internal Revenue Service for providing false or misleading information when preparing his clients’ tax returns.

According to the IRS, Robert A. Loeser of Houston assisted his clients in lowering their tax bills by claiming false business expenses on tax returns he prepared. He allegedly advised his clients to forward funds from their businesses to two corporations that he controlled. The corporations then rebated the funds to his clients. Loeser prepared the clients’ books and business tax returns, expensing and deducting the entire amounts that were paid to the corporations.

The IRS accused Loeser of violating Circular 230 requirements by giving false or misleading information to the Treasury Department and the IRS, and he has settled with them.

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“Practitioners have a duty both to their clients and to the system to ensure taxpayers are complying with tax laws and filing complete and accurate tax returns,” said Karen L. Hawkins, director of the IRS’s Office of Professional Responsibility, in a statement.

The Office of Professional Responsibility establishes and enforces standards of competence, integrity and conduct for tax professionals, including enrolled agents, attorneys, CPAs, and other individuals and groups covered by Circular 230.

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