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Luca Russo

My tax preparer got convicted for tax fraud and now I'm being audited by the IRS - HELP!

I'm freaking out right now. Just got a letter from the IRS last week saying they're auditing my 2022 tax return and I owe them money. When I tried to contact my tax guy to figure out what happened, I found out he's been CONVICTED of tax fraud and embezzlement! Like, seriously?! I trusted this person with my finances for years!! I have absolutely no clue what to do at this point. Should I immediately hire a tax attorney? Try calling the IRS directly? Has anyone dealt with something like this before? I'm honestly terrified about what might happen next. I live in California if that matters for any state-specific advice. This feels like a nightmare and I just want it to end.

I work with tax resolution cases and unfortunately see this situation more often than you'd think. First, don't panic - this isn't your fault and there are clear steps to address it. Since your preparer was convicted of tax fraud, you should request a copy of your original tax return from the IRS (Form 4506) to see exactly what was filed under your name. Then gather all your original documentation for that tax year - income statements, receipts, anything you provided to your preparer. I'd recommend speaking with the IRS directly about your situation. Explain that you're a victim of a fraudulent preparer, and ask about the IRS's "Innocent Spouse Relief" or similar taxpayer protections. Document every conversation with the IRS (date, time, agent ID number, what was discussed). A tax attorney is helpful but not always necessary at this early stage. A qualified CPA familiar with tax fraud cases might be sufficient and more affordable.

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Thanks for this detailed response! Quick question - when you say "request a copy of your original tax return" is that something I can do online, or do I need to mail in the form? Also, how long would the IRS typically give someone to respond to an audit notice in a situation like this?

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You can request tax return transcripts online immediately through the IRS website by creating an account at IRS.gov. For actual copies of returns with all attachments, you'll need to mail in Form 4506 with a fee, which takes longer. For audit responses, typically you have 30 days from the date on the notice to respond, but due to your situation, you can request an extension by calling the number on your notice. Explain your circumstances with the fraudulent preparer, and they'll often grant additional time while you gather documentation.

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After dealing with a similar nightmare last year (my accountant didn't commit fraud but made serious errors), I found an amazing service called taxr.ai (https://taxr.ai) that saved me so much stress. They specialize in analyzing tax documents and audit notices to break down exactly what's happening in plain English. I uploaded my audit letter and previous returns, and they identified exactly what triggered the audit and helped me understand what documentation I needed to respond with. Their analysis even found deductions my sketchy preparer had missed! The report they generated helped me respond to the IRS with confidence instead of panic.

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Does the taxr.ai thing need all your personal info? I'm already dealing with someone who misused my info, so I'm super cautious now. Also, can they actually help with audit defense or just analyzing what went wrong?

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I've heard about these AI tax tools but wasn't sure if they're legit. Did they help you figure out if you actually owed money or not? I'm in a similar situation where I don't trust what my previous preparer did.

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The service uses encryption for all document uploads, and you can even redact sensitive info before uploading if you're concerned. They're not storing your SSN or anything - just analyzing the tax forms and notices. They don't represent you in an audit - they're not replacing a tax professional. What they do is analyze your documents so you understand exactly what's happening and what options you have. In my case, they identified that certain business expenses were claimed incorrectly, which helped me gather the right documentation to respond properly.

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Just wanted to update everyone. After seeing the recommendation, I tried taxr.ai with my audit notice and previous returns. It was incredibly helpful! The analysis showed that my former preparer had claimed business deductions that weren't properly documented and some education credits I wasn't eligible for. The report broke down exactly what the IRS was questioning and why, in simple language I could actually understand. I was able to take this information to a local CPA who helped me prepare a proper response. Because I understood what was happening, I felt much more in control of the situation. They even identified some legitimate deductions my fraudster preparer had missed! Still dealing with the audit, but feeling way less panicked now.

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When I was in your situation last year, I spent WEEKS trying to get someone at the IRS on the phone. Constantly on hold, disconnected, repeat. Absolute nightmare. Then a friend recommended Claimyr (https://claimyr.com) - they have this system that somehow gets you through to a real IRS agent without the typical 2+ hour wait. Check out how it works: https://youtu.be/_kiP6q8DX5c I was super skeptical but desperate. They got me connected to an actual IRS representative in about 15 minutes. I explained my situation with my fraudulent preparer, and the agent walked me through the process of documenting that I was a victim and setting up a payment plan for the legitimate portion I did owe. Having that direct conversation made all the difference.

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How does this even work? The IRS phone system is notoriously terrible. Are they using some kind of loophole or something? Seems too good to be true considering I've spent literal hours on hold before.

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This sounds like a scam. You're telling me some random company can magically get through to the IRS when nobody else can? And I'm guessing they charge a fortune for this "service." No thanks.

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It's not a loophole - they use technology that navigates the IRS phone tree and waits on hold for you, then calls you when they reach a human. It's totally legitimate and the IRS knows these services exist. The service costs money, but considering I was taking time off work to sit on hold for hours, it was absolutely worth it. When you're facing potential penalties and interest accumulating daily, getting answers quickly has real value. I understand being skeptical - I was too until I tried it and had an IRS agent on the phone in minutes instead of hours.

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I need to eat my words and apologize to Profile 19. After my dismissive comment, I was still struggling with my own tax situation and decided I had nothing to lose by trying Claimyr. I was SHOCKED when I got a call back with an actual IRS agent on the line in under 20 minutes. The agent was able to pull up my file, confirm which returns were affected by my fraudulent preparer, and walk me through the documentation I needed to submit. They even placed a temporary hold on collections while I gathered everything. Having that direct conversation saved me weeks of anxiety and uncertainty. Sometimes being proven wrong is actually the best outcome!

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One thing no one's mentioned - REPORT YOUR PREPARER to the IRS if they haven't already. Use Form 14157 (Complaint: Tax Return Preparer). Even though he's been convicted, this creates a record linking your case to his fraud pattern. Also, request a copy of the Preparer Tax Identification Number (PTIN) directory entry for your preparer from that time period. This helps establish that you used a preparer who appeared legitimate and registered with the IRS.

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Thank you for this specific advice! Would filing this form potentially help my case with the audit? And do I need any special documentation about his conviction or just my personal experience?

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Filing Form 14157 absolutely helps your audit case. It officially documents you as a victim of the preparer's fraud scheme rather than a willing participant. The IRS can link your report to their investigation file on the preparer. You don't need to provide documentation of his conviction - the IRS already has this information in their systems. Just provide your personal details, his name and any business name he operated under, and a simple explanation of your situation. Keep a copy of everything you submit for your records.

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Has anyone dealt with the California Franchise Tax Board in a situation like this? I had a similar issue last year, and while I resolved the federal part, the state side was a whole separate nightmare.

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California actually has a taxpayer advocate service specifically for this. Call 916-845-4775. They were surprisingly helpful for me when I had issues with my preparer. The state has different procedures than the IRS, so definitely address both separately.

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I went through something very similar two years ago when my preparer was caught in a scheme affecting dozens of clients. Here's what I learned that might help: Document EVERYTHING from now on. Create a timeline of your relationship with this preparer - when you started using them, what documents you provided, any red flags you might have missed. This becomes crucial evidence that you were acting in good faith. Contact the IRS Taxpayer Advocate Service (1-877-777-4778) - they have special procedures for victims of preparer fraud. They can sometimes pause collection activities while you sort things out and may expedite your case review. Don't ignore the audit notice deadline, but you can request an extension by calling the number on the notice. Explain your situation - they're usually understanding when there's documented preparer fraud involved. One thing that really helped me was getting a "verification of non-filing" letter from the IRS for the tax year in question, which shows what they have on file versus what was actually submitted. Sometimes fraudulent preparers file completely different returns than what they show you. The good news is that victims of preparer fraud often qualify for penalty relief, and the IRS has gotten better at handling these cases. It's stressful, but you're not automatically liable for everything just because it was filed under your name.

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This is incredibly helpful - thank you for sharing your experience! I had no idea about the "verification of non-filing" letter. That sounds like it could be a game-changer for understanding what was actually submitted versus what I thought was filed. Quick question - when you contacted the Taxpayer Advocate Service, did they assign you a specific advocate to work with throughout the process? And roughly how long did it take from when you first contacted them until you had some resolution? I'm trying to get a sense of the timeline I might be looking at. Also, you mentioned creating a timeline of red flags - I keep beating myself up thinking I should have known something was wrong. It's reassuring to hear that the IRS recognizes people can be victims in these situations.

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