I too have come across all too many (any is too many) crooked preparers in my 17 years of being in business. It makes me both mad and sick, especially when these prospective new clients then have the nerve to ask me right to my face why I can't (won't) do the same as their last preparer (even though, in many of thse cases, their preparer can no longer be 'found')!!
Just 2 months ago one of my co-workers came to me to look over her 2006 tax return prepared by a firm 50 miles away. She was concerned that she was unable to apply for her college student loans, because she was filed as Head of Household, yet the college had records that said that she was indeed married. Keep in mind that while I find that many or most clients DO know what is going on...this one did not. She is 23 years old, and works as one of my Teacher's Aids, as I am also a Middle School educator. Any who, her wonderfully honest preparer, in a WRITTEN letter to her (which I possess a copy of), stated that she and her husband would owe if they filed MFJ, and would receive a refund, EIC, etc if she filed as HOH, and her husband then, of course (?) would file as single!! Looking over her papework, I informed her that not only was this illegal, and that there would have been no way her husband could have filed as single even if they lived apart the last 6 months of the year and even though under those conditions she could have filed HOH; he still would have had to file as MFS. By the way, when I recomputed the original tax preparers work, this couple would NOT have owed if they had filed as MFJ!
She was so worried about these new findings, that she had me amend her 2006 return, even though she now owed over $2,000 back to the IRS. She was hoodwinked. I immediately contcted the IRS Fraud Division and never heard back. I immediately contacted CTEC, who referred me to the FTB (California Franchise Tax Board), whom I can only hope is taking action on this firm.
OOOOOOHHHHHHH, it just makes me so angry when they cheat not only the IRS/State Tax Boards, but also their own clients!!
Howard Owens