Requests for exorbitant phone tax refunds has prompted the Internal Revenue Service to send special agents into seven cities to execute search warrants at tax prep businesses.According to affidavits filed in federal court, the agency is seeking evidence from preparers suspected of filing returns on behalf of clients that requested “egregious amounts” for this year’s special telephone excise tax refund.

Investigators served warrants at tax businesses in Riverside, Calif.; Dallas, Tyler and Athens, Texas; and Atlanta, Miami and New Orleans. The special agents temporarily closed the businesses, seizing computers and documents to use in their investigations. Along with carrying out enforcement action in those seven cities, the IRS said that other tax preparers across the nation who are preparing questionable telephone tax refund requests began receiving visits from IRS auditors and special agents last week.

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