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Accountant Orlando – How To Deal With A Fraudulent Client?

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FTAX Blog Pic Accountant Orlando   How To Deal With A Fraudulent Client?
As an accountant in Orlando FL, you will face situations in which your client will be criminally prosecuted regarding allegations of tax evasion. While as an Orlando accountant, your duty is to provide advice to your client to overcome such allegations and penalties, your role could also jeopardize the investigations and legal proceedings.

Reasons For Investigation

IRS usually places a tax payer under criminal investigation after careful examination of various aspects of his wrongful behavior. IRS usually proceeds with criminal investigation when multiple years of wrongdoing behavior is evident. Some of the factors that can lead to a criminal penalty are:

  • Neglecting to report various sources of income.
  • Significant increase in net worth over a period of years
  • Claiming huge amounts as business expense instead of personal expense
  • Failing to maintain accurate accounting records
  • Discrepancies in amount filed for return
  • Providing false information regarding date of transaction
  • Placing asset in someone else name

As an accountant Orlando FL, you will be in a position to avoid legal complications and to help your client from being legally misrepresented. Your actions in such investigation will determine your role in the tax fraud investigation and would likely avoid any false prosecution of your client.

If your client has been interviewed by an IRS agent, you should cease to represent the client as an interview request is likely to precede a criminal investigation. Representing a client in a tax investigation requires knowledge in court prosecution which an accountant in Orlando FL is not qualified for. Therefore, it is best that you avoid representing your client in such cases as you can also be asked to testify against your client.

Client-Attorney Privilege

IRS does not grant the status of client privileges to any communication between the clients and accountant in matters relating to the criminal prosecution. Statements attained in this context can used in the criminal courts as evidence and can be used to legally prosecute the taxpayer.

Dealing With Potential Fraud

To avoid being in such compromising situation and maintain the integrity of your practice methods, it is vital that you have sound and effective screening policy that will help you differentiate from fraudulent clients. Some of the effective screening procedures include background checks and examination of credit scores and record that will better enable you to gain a prospective into the client’s affair.

If you come across any misleading or false information, it is best that your client to consult an attorney who specializes in dealings with such persecution.

While providing services to the client, many accountants in Orlando came across errors in previous tax returns and failure of client in filing the required tax return. In such cases, it is best to inform your client of any discrepancy and the causes. If you client does not take corrective measure, it is probably best to end your relationship with him and implement corrective measures to avoid such error in near future.

While it is common that you will find a client with fraudulent intents, it is professional ethics and work procedure that define your image in such proceedings.

If you need more information about our accounting and tax services, please contact us at 407-344-1012.  Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years.  Our Orlando accounting and tax firm has its main offices in Kissimmee, FL.  Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL.  Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.

Robert AcevedoAccountant Orlando – How To Deal With A Fraudulent Client?

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