Beware Fraudulent Tax Preparers: Find a Trusted Atlanta CPA Firm

Protect Yourself from Fraudulent Tax Preparers with a Trusted Atlanta CPA Firm

Tax season is a critical time for individuals and businesses, but unfortunately, it also attracts fraudulent tax preparers looking to take advantage of unsuspecting taxpayers. A recent lawsuit filed by the Justice Department highlights the dangers of working with fraudulent tax preparers who manipulate tax returns to increase refunds- often without the taxpayer’s knowledge. These dishonest practices can leave taxpayers with unexpected liabilities, penalties, and legal trouble.

At CKH Group, we understand the importance of trust and integrity in tax preparation. Since 2003, our Atlanta-headquartered CPA firm has been providing ethical and accurate tax services to individuals, small businesses, and global enterprises. We want to ensure you’re equipped to recognize red flags and make informed decisions when choosing a tax professional.

Warning Signs of an Unscrupulous Tax Preparer

• Guarantees of Large Refunds– Be wary of any tax preparer who promises you an unusually high refund before even reviewing your financial documents. Legitimate CPAs base refunds on actual tax laws, not on inflated or fabricated claims. Anytime a refund seems ‘too good to be true,’ it’s time to call in to question how your tax preparer got to that number.
• Preparer Refuses to Sign the Return (“Ghost Preparers”)– Tax preparers are required to sign the returns they prepare and include their Preparer Tax Identification Number (PTIN). If a preparer refuses to sign your return, this is a major red flag. The IRS details more information on these ghost preparer schemes here.
• Falsifying Income or Deductions– Some unethical tax preparers will invent businesses, claim false expenses, or manipulate deductions to artificially lower your tax liability. While this may seem beneficial in the short term, the IRS can—and often does—catch these discrepancies, leaving you responsible for repaying the false refunds, plus penalties and interest.
• Fees Based on a Percentage of Your Refund– Ethical tax professionals charge a transparent fee for their services; while these can vary greatly depending on your tax return’s complexity, legitimate preparers rarely base it on how much they refund you. Preparers who base their fees on a percentage of your refund have a financial incentive to inflate your return, which could lead to serious legal consequences for you.
• Limited or No Communication After Filing– If your tax preparer disappears after filing, fails to provide copies of your return, or is difficult to reach when you have questions, that’s a sign of a fraudulent operation. A reputable CPA firm will always be able to provide you necessary documentation or support you, even after tax season ends.

Check Your Preparer’s Credentials

One way to avoid fraudulent tax preparers is to ensure they have legitimate qualifications. Before trusting someone with your tax return, you can verify their qualifications with the IRS’s free Preparer Directory of credentialed tax professionals. You can even look up CKH Group’s trusted professionals, such as Frank D’Urban Jackson, our Chief Tax Officer, who is listed as a CPA in the 30328 area code.*

*Please note that your preparer might be registered in a different zip code but still registered in the appropriate state. Alternatively, they might hold a different level of qualification than CPA (such as enrolled agent). If you are having trouble finding your preparer or if you’d like to research a specific preparer, please feel free to contact us directly, at which point certification can be provided.

What to Do If You’ve Been the Victim of Tax Preparer Fraud

Discovering that your tax preparer has engaged in fraud can be stressful and overwhelming. Many taxpayers believe that since they provided their financial information in good faith, they won’t be held responsible for errors or fraudulent claims made by their preparer. Unfortunately, the IRS holds taxpayers ultimately responsible for the accuracy of their returns, even if they were unaware of any wrongdoing. This is why it is so crucial to ensure you are working with a trusted, reputable preparer before filing.

Am I Liable for Fraud Committed by My Preparer?

In most cases, yes. If your return contains false information, the IRS may hold you responsible for repaying any incorrect refunds or unpaid taxes, along with additional penalties and interest.

However, if you can prove that your preparer acted without your knowledge or consent, you may be able to dispute the charges or seek relief.

Potential Consequences for the Taxpayer

If the IRS determines that fraudulent activity occurred on your return, you may face:

• Additional Tax Liability – You may be required to repay any falsely claimed refunds and cover the correct tax amount owed._­
• Penalties & Interest – The IRS can impose accuracy-related penalties (typically 20% of the understated tax) and charge interest on the unpaid balance.
• Audits & Future Scrutiny – A fraudulent return increases your likelihood of being audited in future years.
• Possible Criminal Investigation – While rare, if the IRS suspects intentional fraud, they may pursue civil or even criminal charges against you.

 Steps to Take if You’ve Been a Victim of Tax Preparer Fraud

1. Report the Fraudulent Preparer– File Form 14157, Complaint: Tax Return Preparer, with the IRS. If you suspect they altered your return without your knowledge, also submit Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.
2. Amend Your Tax Return– If your preparer filed a fraudulent return, you should file an amended return (Form 1040-X) as soon as possible to correct any errors. The sooner you act, the lower your penalties may be.
3. Cooperate with the IRS– If the IRS contacts you regarding discrepancies, respond promptly and provide documentation showing that the fraud was committed by your preparer without your knowledge.
4. Consider Legal Assistance– In cases involving large penalties or criminal accusations, consulting a tax attorney or (trusted) CPA can help you navigate the legal process and protect your rights.
5. Monitor Your Tax Records– Check your IRS account transcript to ensure no additional fraudulent activity has occurred and that your amended return is processed correctly.

For more details on tax preparer fraud and taxpayer rights, visit the IRS Taxpayer Advocate Service.

Why Choose CKH Group?

At CKH Group, we prioritize accuracy, transparency, and ethical tax preparation. As a trusted Atlanta CPA firm since 2003, we have built long-term relationships with our clients by ensuring their tax filings comply with federal and state regulations while maximizing legitimate deductions and credits.

• Experienced & Licensed Professionals– Our team consists of certified CPAs and accountants with deep tax law knowledge, ensuring you receive expert guidance.
• Transparent, Fixed Pricing– No hidden fees or refund-based pricing schemes—just honest, reliable service.
• Year-Round Support– We’re here for you beyond tax season, providing strategic tax planning and support when you need it.
• Peace of Mind– With CKH Group, you can trust that your tax return is prepared correctly, minimizing your risk of IRS audits or penalties.

Stay Safe This Tax Season

With tax scams on the rise, it’s crucial to work with a reputable CPA firm that prioritizes your financial well-being. If you need professional, ethical tax preparation services, CKH Group is here to help. Contact us today to schedule a consultation and ensure your taxes are filed with integrity and accuracy.

The above article only intends to provide general financial information and is based on open-source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personalized tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm/errors/claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents, we will not be held accountable for any changes that are beyond our control.