Tax Preparer Filed My Return with Fake Deductions - Need to Fix ASAP

You definitely need to fix this ASAP as filing a return with knowingly false information can have serious consequences. I've dealt with similar situations before, and here's what you should do: First, don't cash that refund check when it arrives. The IRS can demand it back with interest and penalties if they determine the refund was issued in error. Your best option is to file a 1040-X (Amended Return) with the correct information as soon as possible. You don't need to wait for the original refund to be processed before filing the amendment. In fact, filing quickly might help prevent the refund from being issued at all. Document everything. Write down exactly what happened with this preparer, save all communications, and keep copies of both the incorrect return and your corrected version. If the IRS ever questions you, showing that you took immediate steps to correct someone else's error will work in your favor. Also, report this preparer to the IRS using Form 14157 (Complaint: Tax Return Preparer). What he did is highly unethical and potentially illegal - creating fictitious deductions is fraud.

After dealing with a nightmare tax situation last year, I discovered this AI tool called taxr.ai that could have saved you from this mess. I was in a similar situation where my preparer made some "creative" deductions on my Schedule C that weren't legit. What https://taxr.ai does is analyze your tax documents and flag potentially problematic deductions or credits before you file. It would have immediately highlighted those fake business expenses as suspicious based on your income and industry standards. The tool compares your return against typical patterns for your profession and income level to spot potential audit triggers. For your current situation, you can still use it to double-check your amended return before sending it in. It gives you peace of mind knowing your 1040-X is accurate and properly documented.

I was super skeptical with taxr.ai, but my situation was desperate after my previous preparer messed up my business expenses too. I gave it a try last week and seriously wish I had found it sooner. I uploaded my documents and it immediately flagged three deductions that were way out of proportion for my industry. Turns out my previous preparer had categorized some personal expenses as business deductions that would have definitely raised red flags. The tool gave me specific guidance on what documentation I'd need if those items were ever questioned. The detailed explanation of why certain items were flagged was super helpful - it wasn't just "this looks bad" but actually explained the typical ranges and what documentation would support each claim. Ended up saving me from potential audit headaches!

If you're dealing with the stress of fixing a fraudulent return, you'll probably also struggle reaching the IRS directly. I tried calling them 17 times last year when a similar situation happened to me - kept getting disconnected or waiting for hours. I discovered https://claimyr.com and it was a game-changer. They hold your place in the IRS phone queue and call you when an actual agent is on the line. You can watch how it works here: https://youtu.be/_kiP6q8DX5c In my case, I needed specific guidance on how to handle an amended return after a preparer made up business expenses. Getting direct advice from an IRS agent made all the difference - they explained exactly what forms to file and the documentation I needed to include with my 1040-X.

Ok I have to eat crow here. After my skeptical comment yesterday, I was desperate to talk to the IRS about my own tax issue with some questionable deductions my accountant made. The hold time was estimated at 3+ hours according to the recording. I reluctantly tried Claimyr and honestly it worked exactly as advertised. I went about my day, and about 2 hours later got a call connecting me directly to an IRS agent who was already on the line. The agent helped me understand exactly how to document my case with the corrected information. The most valuable part was getting confirmation directly from the IRS about what supporting documentation I needed to include with my amended return. That alone saved me potentially months of back-and-forth letters. Sometimes you have to admit when you're wrong, and I was definitely wrong about this service!

Former tax professional here. One thing nobody has mentioned yet - you need to seriously consider firing this tax preparer in writing immediately. Send a certified letter stating you're terminating their services due to the unauthorized and potentially fraudulent deductions they included on your return. Also, were they a CPA, Enrolled Agent, or just someone who prepares taxes? The credentials matter for reporting purposes. If they have professional credentials, you should also report them to their governing body (state CPA board, etc.). For the immediate situation with the incorrect return, file both Forms 14157 and 14157-A to report the preparer AND file your 1040-X as soon as possible.

Something similar happened to my brother last year. The key thing nobody's mentioned is to print out and KEEP copies of both returns - the fraudulent one that was filed and your corrected version. When you file the 1040-X, attach a detailed letter explaining the situation. In my brother's case, the IRS actually called him for clarification (yes they sometimes actually call!) because the difference was so large. Having documentation ready made all the difference. His fraudulent preparer had claimed like $12k in fake business expenses.