In Kansas, tax preparers do not need a license to file returns. Experts say this may be part of the reason tax fraud is growing.
A major problem with Ronald Jordan's tax refund really cut into his budget. He was supposed to get a $3,800 return electronically deposited into his account, but his bank sent the money to someone else.
Jordan hired a home-based tax preparer he found online to do his taxes. Mysteriously, Jordan's bank information was changed after the taxes were filed. Someone faxed the bank a request to change the routing number and the money went to someone else, probably a crook.
Tax experts say Jordan's problem was not that he filed online, but who he hired to do the work. Mary Ann Myers at H & R Block says you need to make sure your tax preparer has experience and that they work for a reputable company.
A report just released by the Internal Revenue Service shows tax fraud is on the rise. The IRS prosecuted more than twice the number of tax preparers last year than the previous year.
Jordan worked with his bank to get his money back, but says it's a miracle that he landed on his feet.
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