From CNBC:
Every year unregulated tax preparers pop up in abandoned
storefronts like weeds in a cracked sidewalk. Sprouting in low-income
neighborhoods, they promise fat refund checks fast. But even without
upfront charges, they can have hidden costs for the unwary.
In
Congressional hearings Tuesday, consumer advocates said their
investigations found significant levels of fraud and incompetence by
paid tax preparers, from about 25 percent to more than 80 percent.
According to the IRS, 81.2 million of nearly 145 million individual
tax returns filed for tax year 2011 were completed by a paid preparer.
Should one of those preparers make a mistake, or commit outright fraud,
the taxpayer is on the hook in the event of an audit. By that time the
"For Rent" sign may have reappeared in the tax preparer's former
storefront, with no way to find him or her.
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