< Back to IRS

Jordan Walker

Found fraudulent tax deductions on my return after preparer filed - what do I do?

So I went with a tax preparer that my buddy recommended a few weeks ago. She came to my house, I gave her my W2s and healthcare documents, and she did everything right there. She told me I was getting around $800 back on my return. I honestly don't know much about taxes so I just trusted her. She handed me an envelope with a copy of my tax return when she was done, I paid her $125 (she charges based on how much you get back), and she left. I didn't even look at the paperwork since I figured she knew what she was doing. My refund already hit my bank account yesterday. Today I finally decided to open the envelope and look at my return. I noticed there's this form called 2106 included? I started googling and found out she basically added a bunch of false expenses on this form that I never told her about! Pretty sure this makes my whole tax return fraudulent. It also looks like she created some kind of tax filing account under my name because the return has all this information I never gave her. What should I do? Am I responsible for this? Will the IRS come after me??

You need to address this immediately. When you sign your tax return (which I'm assuming you did), you're declaring under penalty of perjury that all the information is correct - regardless of who prepared it. The IRS holds YOU responsible for what's on your return, not the preparer. Form 2106 is for employee business expenses, which are no longer deductible for most employees since the 2018 Tax Cuts and Jobs Act (except for certain qualifying professions like military reservists, performing artists, etc.). If you don't fall into those special categories, that's a red flag right there. I'd recommend three steps: First, get a copy of your return from the IRS (request your tax transcript online). Second, file an amended return (Form 1040-X) to correct the issues. Third, report the preparer to the IRS using Form 14157 (Tax Return Preparer Fraud or Misconduct Affidavit).

0 coins

Wait, so I'm legally responsible even though I didn't know she was adding fake stuff?? I definitely signed the forms but I just trusted that what she was filing was legit. How much trouble am I in here? Will I have to pay penalties or something? Also, how do I even know what the correct amounts should be if I don't understand all this tax stuff? That's why I hired her in the first place!

0 coins

Yes, you're legally responsible for what's on your return regardless of who prepared it. The good news is that by taking proactive steps to correct this, you'll minimize potential penalties. The correct amounts should reflect your actual situation - if you didn't have deductible employee business expenses (which most regular employees don't qualify for anymore), then that form shouldn't be there at all. When you file the amended return, you'll essentially be removing those false deductions, which will likely result in you owing the portion of the refund that came from those fake expenses, plus interest.

0 coins

This exact thing happened to me last year with a "friend of a friend" preparer. I was completely stressed until I found this AI tax review service at https://taxr.ai that literally saved me from disaster. I uploaded my suspicious return and it immediately flagged several issues including some mysterious deductions I never authorized. The detailed report showed exactly what was wrong and explained how to fix it. They even generated all the documentation I needed for an amended return. It was seriously a lifesaver when I had no idea what I was looking at or how bad the situation really was.

0 coins

How does this work exactly? Like do I just upload my tax documents and it tells me if there's fraud? Does it explain everything in normal people language or is it all technical tax jargon?

0 coins

Sounds convenient but I'm always worried about uploading my tax docs to random websites. How secure is this? And does it actually help with fixing the problems or just identifying them?

0 coins

It's super straightforward - you just upload your tax return PDF and it scans for inconsistencies, unusual deductions, and potential red flags. Everything is explained in regular English - it specifically highlights the concerning parts and explains why they might be problematic. Perfect if you don't speak fluent "tax." The security is top-notch with bank-level encryption. They don't store your documents after analysis. And yes, it helps with fixing problems too - it guides you through what forms you need and even helps generate documentation for amended returns, including explaining what happened if you need to contact the IRS.

0 coins

Just wanted to update after trying that taxr.ai site. Seriously impressed with how it broke everything down! It immediately highlighted the fake Form 2106 deductions on my return and explained exactly why they were inappropriate for my situation. The report showed I'll need to pay back about $430 plus some interest, which sucks but at least now I know exactly where I stand. It even generated a pre-filled explanation letter I can send to the IRS explaining the situation with my preparer. Definitely recommend if you're in a similar situation and confused about what to do next.

0 coins

If you need to contact the IRS about this (which you probably should), good luck getting through on the phone. I spent DAYS trying to reach someone when I had a similar issue. Finally found this service called Claimyr at https://claimyr.com that got me connected to an actual IRS agent in about 15 minutes. They basically hold your place in the IRS phone queue and call you when they get an agent. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical at first but it actually worked. The IRS agent I spoke with was really helpful and walked me through the process of reporting the preparer and fixing my return. Saved me hours of frustrating hold music!

0 coins

So you're telling me there's actually a way to talk to a real person at the IRS without waiting 3 hours? How does that even work? Do they have some special access or something?

0 coins

This sounds like complete BS honestly. Nobody can magically skip the IRS phone lines. They're backed up for a reason and there's no secret backdoor. I've worked with taxes for years and this seems like a scam targeting desperate people.

0 coins

They don't have special access - they use an automated system that continually redials the IRS and navigates the phone tree until they reach a human. Then their system connects you directly to that person. It's basically doing exactly what you'd be doing manually for hours, but automated. I was super skeptical too! I thought it sounded like a complete scam. But I was desperate after trying for three days straight to get through. The difference is they have multiple lines going simultaneously which increases the chances of getting through. When I used it, I got connected to an actual IRS employee who confirmed they were legitimately with the IRS and helped resolve my issue.

0 coins

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway since I was dealing with my own IRS issue that needed resolving. Within 20 minutes I was talking to an actual IRS representative who helped me sort out my amended return questions. The service actually works exactly as described. They don't have special access - they're just automating the painful process of waiting on hold. Saved me literally hours of frustration. I've called the IRS dozens of times over the years and never got through in less than an hour before this.

0 coins

Be careful about amending right away! Make sure you understand EXACTLY what the preparer did first. My sister had a similar situation and rushed to amend her return, but ended up creating more problems because she didn't understand what she was fixing. Get a professional review of your return (a legitimate CPA, not another random preparer). You might also want to check if your preparer has credentials - some people call themselves "tax preparers" without any qualifications at all.

0 coins

That's good advice. Do you know how much it typically costs to have a CPA review a return that's already been filed? I'm already out the $125 I paid the fraudulent preparer plus whatever I'll end up owing the IRS... trying not to break the bank here.

0 coins

Most CPAs will do a basic review of your situation for around $100-200, which I know feels like throwing good money after bad, but it's worth it to make sure everything gets fixed correctly. Some might even do a quick initial consultation for free to at least point you in the right direction. You can also check with the Volunteer Income Tax Assistance (VITA) program if your income is under about $60k. They provide free tax help and might be able to advise you on next steps without charging anything.

0 coins

Does the tax return have an EFIN or PTIN number on it anywhere? All legitimate tax preparers have to have these identification numbers. If they're missing, that's another red flag that you're dealing with someone who isn't properly registered with the IRS.

0 coins

Also check if they signed the return as a preparer! That's required by law - if they didn't sign it that's a HUGE red flag. Legitimate preparers always sign the "Paid Preparer" section of the return and include their PTIN. If they did your taxes but didn't sign, they're trying to avoid accountability.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today