CHARLOTTE, N.C. — It's tax season again, which means Americans are gearing up to make their filings with the Internal Revenue Service (IRS). But tax time also comes with the risk of tax fraud, and the IRS Criminal Investigation field office in Charlotte has ways you can get ahead of a filing faux pas.
“Investigating and prosecuting tax fraudsters is a priority of this office,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “Our experienced criminal tax prosecutors work diligently with investigators to ensure compliance with federal tax laws for the benefit of all our citizens. Tax fraud is not a victimless crime. Tax cheats harm law-abiding citizens who file honest and accurate tax returns and pay their fair share of the nation’s tax burden. Our taxes support important services provided in our communities and I will vigorously pursue tax fraudsters who enjoy those services while requiring others to pay for them."
“Those who consider preparing false tax returns during this tax season are subjecting themselves to potential criminal prosecution and other penalties,” said Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office. “It is important for people to have confidence in the tax system. The IRS CI and U.S. Attorney’s Office will continue our aggressive pursuit of those who attempt to defraud America's tax system."
The IRS says the CI division initiated more than 1,400 tax crime investigations in fiscal year 2023, identifying $5.5 billion in tax fraud. 655 defendants total were sentenced for tax crimes.
Some of those tax crimes in the Charlotte area included a tax preparer who filed fraudulent returns on behalf of her clients and a "ghost preparer" who helped file false returns over five years. Both cases saw clients receive inflated tax refunds, with the latter's clients receiving $4.7 million total.
The IRS CI division and the U.S. Attorney's Office offered the following tips for taxpayers this season:
- Avoid return preparers who claim they can help you get larger refunds than others or whose fee is a percentage of your refund.
- Use a reputable tax professional who signs and enters a preparer tax identification number (PTIN) on your return and provides a copy of it for your records.
- Never sign a blank tax form and ensure your refund goes to your account, not your tax preparer's.
- Protect your personal and financial information. Don't click links or open attachments in unsolicited emails or texts about your return or those claiming to be from the IRS. Those are fraudulent messages and could contain malware that can compromise your personal information.
- Report fraud to law enforcement. If you suspect a person or business is committing fraud, submit Form 3949-A, Information Referral.
The deadline to file, pay any tax owed, or request an extension to file for most of the nation is April 15, 2024. Taxpayers in Main and Massachusetts have until April 17.
To let us know how WCNC Charlotte can help you get ahead in 2024, email us at newstips@wcnc.com.