Wow. I work with this woman who is a single mom with 2 children and has 0 taxes taken out of her check. I'm thinking it's probably because of her income BUT NO. She claims to have "an expert," who's a friend from a H&R Block office in Tullahoma, do her taxes. This "friend" is claiming my co-worker's commuting miles and medical plan premium payments as a deduction. Having worked business and personal taxes for H&R Block, I know this is not legal. Wow, did she get mad when I told her it was illegal, so she must know it's fraudulent. However, she told me I better review my tax law... that her friend knows what she is doing. (Ooo Kay. With that intensity, you'll have to find out on your own that I am right.)
I just hope that the co-worker is taking out that additional Peace of Mind that Block sells for assurance against any mistakes their tax preparer makes... you know, the one where they pay the government when the mistake is found, plus penalty fees. She'll definitely need it if she gets audited. Oh, and this friend does her mother's taxes too. How can a 0 tax withholding and suspicious deductions not get flagged for an audit? I get love letters from the IRS if I forget to add bank interest (and that is such a huge amount of pennies these days...)
I believe the that tax preparer could be prosecuted for basically lying. Meanwhile, my co-worker is bragging about this technique of not paying taxes and is going around the office recruiting people for this tax preparer. Of course, she gets an additional tax refund as well as paying 0 in taxes. I wonder if I should find the pages in the IRS pubs that distinctly outline the legal mileage deduction (not commuting costs) and medical expenses (not premiums) rules and regulations. Block could really owe mucho dinero with this preparer's creativeness.
I promise I'll be kind to her if she announces an IRS audit... I won't remind her that I told her it was illegal and she went ballistic on me at 8 a.m..
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