On the precipice of tax season, the Internal Revenue Service is touting its 89 percent success rate last year when it came to prosecuting fraudulent preparers of tax returns.According to statistics released by the agency, the number of preparer fraud indictments increased to 135 in 2006, from 119 the previous year. Of the charges brought by the IRS, 89 percent resulting in an incarceration rate, a 3 percent increase over 2005. However, the number of fraud investigations initiated last year actually decreased to 197, down almost 20 percent from 2005's 248 investigations.

Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who claim improper personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access