The Truth About Death and Taxes – Preparer Regulation Makes Sense
There’s an old saying that there are only two sure things in life – death and taxes. While it isn’t the happiest of thoughts, perhaps a more sullen reality is that there is one thing that honest taxpayers have in common with those who participate in tax fraud and evasion: mortality.
It is not something we like to talk about, but it’s a problem that continues to reveal itself over and over again. Tax preparers with little or no training are preparing tax returns for individuals and businesses, and sometimes it isn’t until after the death of the taxpayer that a problem is found. The unfortunate result is that the heirs of the taxpayer are often left with the problem and the tax bill.
A recent article in CPA Practice Advisor highlights three more instances where cases of tax fraud were identified, and where the preparers were the culprits and not the tax payers. Regulation of tax preparation professionals just makes sense, and will go a long way towards protecting businesses and individuals – and their heirs – from tax problems created by unskilled or fraudulent tax preparation.