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CNN Money: Tax Preparer Horror Stories - Wednesday, February 19, 2014
From reporting bogus children to stealing clients' identities, many tax preparers are behaving badly.

In most states, there are no competency requirements governing tax preparers and that is resulting in careless mistakes and outright fraud, a recent report from the National Consumer Law Center found.

The IRS proposed a crackdown in 2011, but a district court blocked the proposal and an appeal of that decision was rejected last week.

As the taxpayer, you're the one who will pay the price if you end up with a bad preparer -- facing fines or even criminal action if you sign off on a fraudulent tax return filed under your name.

"In [46] states, there are more regulatory requirements for hairdressers than tax preparers. Yet the impact of a bad haircut is far less damaging than an inaccurate tax return," the NCLC states.
Here are some of the most egregious offenses, dug up from criminal cases last year.

Read the full story at CNN Money here.

 

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