An accountant can be your best friend in some cases. An accountant knows the ins and outs of taxes. Some people that use to work for the IRS actually end up in an accounting firm. They know how to tweak taxes to fit nearly any situation. Here are four ways that accountants often commit fraud.
Non Accurate Fake Mileage Logs
Some accountants tell their best friends to make a fake mileage log. A ink pro would be able to tell you that it was forged on the record log. They often tell their friends how many miles to put on a fake mileage log and then deduct it. The miles may have really occurred, but it wasn’t actually the correct amount of miles.
Fake Payroll Check Stubs
Good accountants can fake a payroll check stub for the best friend quite easy. You type a few numbers into the computer and change the dates and type in the claim number. Your friend automatically has a fake payroll check stub that looks legit but they never really worked as long as you claim that they did. Accountants that use fake payroll check stubs do it to make a friend qualify for a loan or impress a bank. They are also used in some cases to help convince that a person is a resident of the county.
Fake Miles That Never Really Occurred
Accountants that know how to work the system will make up miles that a client drove that never really existed. It is commonly found with 1099s. They know how to trick the numbers on the forms to satisfy them. They use fake miles so that the client doesn’t have to pay tax on the earned income. An accountant shows a loss when one didn’t really occur.
Accountants Can Put Family Members on Payroll that Rarely Worked
Family members of accounting firms have been put on payroll that never worked nearly as long as it was claimed on there. The accountant knows how to tweak the payroll checks and the tax form at the end of the year to make everything line up exactly. They often claim a position on the fake employee that one can’t verify much such as an receptionist job. Why do they do it? One common reason is to keep a family member on the insurance benefits and show a income.
With all that reasons and scenarios, it is advisable to hire reliable and professional small business accounting services. In choosing the right one, there are several factors that you need to carefully consider for you to get the right accountant for your business.
Accountants are sometimes known to tweak taxes in order to make their best friend qualified to receive welfare benefits. They claim several more deductions than what he or she really did do in order to impress welfare. A common reason is to prevent welfare from coming after the friend for welfare fraud.