My goal when preparing tax returns is always to bring your tax liability down to the legal minimum. Richard Allen Edgar, on the other hand, cheated the IRS out of $358,000 in tax by selling $1.5 million in phony partnership losses to his clients. He charge a percentage of these losses and the IRS caught him. He was sentenced to 15 months in prison and lost his CPA license.
Believe it or not, this type of tax fraud occurs fairly frequently and is also punished frequently. It is very important to find a trustworthy tax preparer. This tax preparer may have gone to prison but his clients will also be left in a very difficult position having to pay back all the tax they were suppose to plus heavy penalties and interest. It is a position that no one wants to be in so do your homework and find a tax preparer that is trustworthy with a proven track record.