Don’t Bend the Truth with Your Tax Preparer

Increased tax rates and the rising chance of an economic recession have tempted taxpayers to cut corners when filing their taxes. However, taxpayers who think that tax preparers aren’t too capable at spotting untruth are mistaken. Here are some clear signs which give away your attempt to bend the truth to your tax preparer.SuperTaxPic

False Deductions

Keeping your receipts and documentation orderly is vital to providing proof when claiming deductions. Having a bunch of additional expenses without any paper trail is one of the biggest phony moves there is, especially if these expenses turn up after receiving a final number from your tax preparer.

Un-Qualifying Dependents

Claiming dependents is an easy way to lower your tax rate, but claiming dependents who aren’t your own or don’t exist is an illegal move. The IRS has tightened up the rules for those who claim kids for the Earned Income Credit by requiring additional documentation which shows the child has met the proper support and residency tests.

Personal and Business Expenses

These two should remain separate when filing your taxes. Although you can write off a percentage of personal expenses on items such as your vehicle and other office equipment, the rest can be very grey areas for some taxpayers. Be sure to provide specific instances of use when your tax preparer questions you about these expenses. If an item can only be sited as used once or twice towards the business it may not be a plausible business expense.

Conclusion

Taxpayers who try to cheat on their taxes are going to run into trouble. Tax preparers know the inner workings of the system and can see when you’re trying to get around paying taxes.

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  • Huddleston Tax Accountants / Huddleston Tax CPAs – Redmond, WA
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    We serve Tukwila, Auburn, Federal Way. We have a few meeting locations. If you are looking for a Redmond CPA firm, get in touch with us! Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.