The very creative approach of Louisiana tax preparer, Mr. Donald Ray Jackson, put him to jail for filing fraudulent tax returns on behalf of his clients. Jackson was one of those tax preparers who guaranteed his customers large tax refunds. His scheme included fabrication of false business expenses that he claimed on taxpayer’s returns. As a result, the state of Louisiana paid off $325,000 in refunds to Jackson’s clients, according to Wbrz.com.
Louisiana Department of Revenue was already on high alert due to the increased number of tax fraud cases in the state. Joined by the state’s Attorney General’s Office, Louisiana taxation agents participated in an anti-tax fraud initiative. As a result, 31 people were taken to custody, including Mr. Jackson, who is now facing 18 felony counts.
Interestingly, two of Jackson’s clients informed investigators that their businesses did not have any losses. Seven individuals said they did not even have a business. Since, in this case, the tax preparer is being blamed, the clients may have an easier job of resolving their tax debt cases with the state. However, it is important to know that no matter who prepared your return, you are still responsible for the information on it.
Every year the Internal Revenue Service receives huge amounts of penalty abatement requests from taxpayers whose tax preparers did not do a good job on their returns, or purposefully provided false figures – yet, it still remains the responsibility of the taxpayer to check all this information before giving permission to the tax preparer to proceed with filing. Even if you are not an expert in tax return preparation, it is a good idea to go over your return with the tax preparer to be able to understand exactly what you are signing.