Form 14157-A Rev 5-2012 Tax Return Preparer Fraud or Misconduct Affidavit-2025

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If you discover that you, your spouse or one of your dependents identity has been compromised, please contact the IRS Identity Protection Specialized Unit by calling 1-800-908-4490. The IRSs online Taxpayer Guide to Identity Theft provides important information about the next steps that should be taken.
Underreporting income. Using a false Social Security number. Falsifying documents. Intentionally failing to pay taxes.
Indicators of FraudExpenses or Deductions Claiming fictitious or substantially overstated deductions. Claiming substantial business expense deductions for personal expenditures. Claiming dependency exemptions for nonexistent, deceased, or self-supporting persons.
No matter how you find out youre the victim of return preparer fraud or misconduct, you need to take the following steps: Contact your local police department and file a report naming the return preparer as a suspect. Fill out Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.
Intentionally concealing assets or maintaining undisclosed accounts is a serious red flag. The IRS considers this behavior as an attempt to hide income or wealth, leading auditors to refer the case for criminal investigations.
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Others, such as high income, cant be helped. Not reporting all of your income. Unreported income is perhaps the easiest-to-avoid red flag and, by the same , the easiest to overlook. Breaking the rules on foreign accounts. Blurring the lines on business expenses. Earning more than $200,000.
Shady tax preparers may: Ask for a cash only payment without providing a receipt. Invent false income to try to get their clients more tax credits. Claim deductions to boost the size of the refund.
The penalty for filing a false tax return is less severe than outright evasion but its still enough to make it sting. Individuals may be fined up to $100,000 for filing a false return in addition to being sentenced to prison for up to three years. This is a felony and a form of fraud.

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