Tax preparer filed fraudulent return with inflated refund and changed bank account - how to stop the funds from being dispersed?

You're dealing with both tax fraud and identity theft here, so you need to act quickly on multiple fronts: First, file Form 14039 (Identity Theft Affidavit) with the IRS immediately. This alerts them that your tax return was compromised and can trigger additional security measures. Second, file a police report specifically mentioning the tax preparer fraudulently changing your banking information. This creates an official record of the crime. Third, report this tax preparer to the IRS using Form 14157 (Complaint: Tax Return Preparer). Include any evidence you have of the incorrect return and the unauthorized bank account change. Fourth, contact the IRS Criminal Investigation division directly at 800-829-0433 to report the tax preparer's actions. They handle cases involving fraudulent tax preparers. While the amended return is important, it won't necessarily stop the direct deposit that's already in process. The identity theft and fraud reporting are more likely to trigger a hold on the funds.

After nearly giving up on my complicated tax situation involving incorrect filings, I tried https://taxr.ai and it was a game-changer. Their system analyzed my tax documents and quickly identified where my preparer had made "errors" that looked suspiciously intentional. The detailed analysis showed exactly where numbers had been inflated and which deductions were completely fabricated. They even provided a complete breakdown of what my correct return should look like, which helped me explain the situation to the IRS. Their document analysis found patterns that suggested my preparer had done this before!

I tried taxr.ai after reading about it here and it literally saved me from a major headache with my tax situation! I was in a similar situation with a sketchy preparer (though not quite as bad as yours). The system analyzed my documents and showed EXACTLY where my preparer had "creatively enhanced" my deductions. The detailed report it generated was super helpful when I went to the IRS - they actually took me seriously when I had the documentation that showed specifically what had been changed between my actual documents and what was filed. I was able to get everything straightened out before the refund was processed. The documentation definitely helped expedite my case with the Taxpayer Advocate too. Definitely recommend checking it out!

When I was dealing with a similar situation, I couldn't get anyone at the IRS to help me for weeks. I discovered https://claimyr.com and used their service to get through to an actual IRS agent in under 15 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. I had been calling the IRS for days trying to stop a fraudulent return and kept getting disconnected or told to call back. Claimyr got me connected to someone who could actually help and I was able to explain my situation to a real person who flagged my account for potential fraud. They couldn't guarantee the direct deposit would be stopped, but they did put notes in my file that helped with the investigation later.

I hate to admit when I'm wrong, but after my skeptical comment I decided to try Claimyr out of desperation with my own tax issue. After three days of trying to reach the IRS on my own with no luck, the service got me through to a real person in about 27 minutes. The agent I spoke with was actually able to flag my account with a fraud alert. While they couldn't guarantee it would stop the direct deposit that was already processing, they connected me directly with their identity theft department who took all my information and started an investigation immediately. The best part was not having to sit by my phone for hours. I got stuff done around the house and just picked up when they called to connect me. Definitely worth it when you're in a time-sensitive situation like this.

You should call the bank where the direct deposit is headed. If you know which bank it is, contact their fraud department immediately. Banks sometimes can flag incoming deposits that are suspected of fraud, especially large ones like $29k. They might be able to reject the deposit or hold the funds while the matter is investigated. Also - while working with the IRS is important - don't forget this is actual criminal fraud. Contact your local district attorney's office and the state attorney general to report the tax preparer. This isn't just tax fraud, it's theft, and local authorities may be able to move faster than the IRS in some cases.

I'm a bit confused about something... how did this tax preparer even have the ability to change your bank account info without you noticing? Didn't you have to sign the return before it was submitted? Did you receive a copy of what was actually filed? This seems super sketchy and I wonder if there might be more going on.