How to Recover Your Tax Money Stolen by a Tax Preparer

Introduction:

Have you ever experienced a situation where a tax preparer stole your hard-earned tax money immediately after filing your return? This article aims to guide you through the steps to recover your stolen tax refund. While the process can be challenging, it is crucial to understand your rights and options.

Tips to Recover Your Stolen Tax Refund

Using the IRS.gov Website

The first and most important step is to visit the Where’s My Refund section on the IRS website. Here, you can enter the details of your tax return, including your Social Security number and tax year. If there is a lien, bankruptcy, or other issues preventing your refund, the page will explain the reasons for the delay. Additionally, be aware that tax preparation fees may be deducted from the refund. Ensure you understand the implications of this and any other deductions made.

Contacting the Tax Preparation Firm

If the refund account number from your tax return does not match your expectations, contact the tax preparer immediately. The account number on your return indicates where the refund will be disbursed, and crucially, where your preparer will receive their fee. You have the right to verify the legitimacy of the refund's disbursement by contacting the preparer.

Reporting Identity Theft

If you suspect identity theft, contact the IRS immediately. Identity theft can cause significant delays in receiving your refund. The IRS has a dedicated Identity Protection Specialized Unit to assist victims of identity theft. They can help you secure your identity and expedite the refund process.

Filing a Complaint with Relevant Authorities

If the preparer is a Certified Public Accountant (CPA) or a tax attorney, you can file a complaint with the State Board of Accountancy. This board has the authority to investigate allegations of professional misconduct and take appropriate action. Similarly, the state bar association can investigate complaints against tax attorneys.

Seek Legal Advice

Given the amount of money involved, it may be wise to consult with a legal professional. If the preparer stopped you from receiving your refund and refuses to return it, a lawyer can help you explore your options, including filing a lawsuit. While a $20,000 refund might not be enough to warrant a small claims court, a lawyer can help you decide on the best course of action.

Key Takeaways

Knowing your options and understanding the steps to take is crucial when recovering a stolen tax refund. Using official IRS resources, verifying disbursement details, and filing complaints with relevant authorities are all important steps. Additionally, seeking legal advice can provide you with the confidence and support needed to navigate this complex situation.

Conclusion

Dealing with tax preparer fraud can be a daunting experience, but understanding the process and taking the right actions can help you recover your stolen funds. Always keep your financial information secure and avoid paying for tax preparation services unless you have verified the preparer's legitimacy and reputation.