Discovered $53k in fake charity and medical deductions on friend's 2022 tax return. Need advice!

What about that tax preparer? Aren't they also liable for submitting false information? If the mom gave fake numbers, shouldn't the preparer have asked for receipts or some kind of documentation?

The tax preparer's liability depends on what they knew. If the preparer had reason to believe the information was false but filed anyway, they could face penalties under Circular 230 regulations and potentially lose their license. However, tax preparers generally rely on information provided by clients and aren't required to audit every claim. Most preparers have clients sign a statement confirming the information provided is accurate. If the mom presented these deductions as legitimate, the preparer may not have legal responsibility.

Is this for real? How exactly does it verify deductions? Like if someone claims they donated $20k to charity, how would this system know whether that actually happened or not?

I'm skeptical about any service claiming to "verify" deductions. The only real verification is having actual documentation like receipts, cancelled checks, or acknowledgment letters. Does this actually connect to charity databases or something?

It doesn't magically verify transactions that didn't happen - it's more about organizing documentation and flagging potential audit triggers. The system prompts you to upload supporting documents for each deduction and highlights when something is missing or incomplete. For charitable donations specifically, it guides you through what documentation is required based on the amount (receipts for donations over $250, etc.) and reminds you about contribution limits based on your AGI. Think of it more as a preventative tool rather than a solution after fraud has already occurred.

Wait, how does this work? Is it some kind of priority line to the IRS? I thought everyone had to wait on hold for hours regardless of who they are.

This sounds like BS honestly. The IRS is completely overwhelmed and understaffed. There's no magical service that can get you through faster than anyone else. Scam alert.

It's not a priority line or anything like that. The service uses an automated system that continually calls the IRS and navigates the initial phone tree for you. It holds your place in line so you don't have to stay on the phone yourself for hours. When an actual IRS representative picks up, the system calls you to connect. It's basically like having a robot assistant do the waiting for you. You still talk to the same IRS agents as everyone else, you just don't have to waste your entire day on hold.

That's a really good point I hadn't considered. I know she's also "managing" his student loans and I wonder if there's other financial stuff happening. I'll suggest he check his credit report right away. I think the hardest part of this situation is that his mom is definitely the one who provided these fake numbers, but she's maintaining complete innocence. Makes me wonder what else she's doing with his finances.

Yeah, unfortunately I've seen this pattern before with family members. Often there's a broader pattern of financial manipulation going on. Student loans are definitely another red flag - make sure he logs in directly to studentaid.gov to see exactly what loans are in his name. I'd also recommend he create an IRS online account at irs.gov to view his tax transcripts directly. This will show all returns filed in his name and any other tax activity. He might discover even more issues.

The Voluntary Disclosure Program is really for major tax fraud cases where criminal prosecution is likely - typically involving offshore accounts, unreported income in the six figures, etc. This case sounds bad but probably doesn't rise to that level.