One of the most common—and costly—mistakes taxpayers make is trusting the wrong person to prepare their taxes. A recent federal case out of Florida shows how that decision can expose taxpayers to serious risk, even when they believe they’re doing everything right.
Khristine N. Harper, a Pensacola tax preparer, pleaded guilty to 20 counts of aiding and assisting in the preparation of false tax returns and one count of identity theft. According to court records, Harper routinely filed fraudulent returns for clients by fabricating deductions and credits that clients never provided—artificially inflating refunds and reducing tax liabilities.
When Harper learned she was under investigation by IRS Criminal Investigation, she allegedly attempted to conceal her activity by changing her business name and filing returns using a stolen Preparer Tax Identification Number (PTIN). For just 20 returns cited in the indictment, the IRS identified more than $103,000 in tax losses.
The Hidden Danger for Taxpayers
While this case focuses on the preparer, taxpayers often suffer the consequences. If a return contains false information—even if the taxpayer didn’t knowingly provide it—the IRS may still pursue:
- Back taxes, penalties, and interest
- Audits of prior-year returns
- Loss of future credits or refunds
- Extended scrutiny of all filings
Hiring a preparer who “guarantees big refunds” or cuts corners can turn a routine tax filing into a long-term problem.
The Takeaway
Taxpayers are ultimately responsible for what’s on their return. That’s why it’s critical to work with a qualified, ethical, and transparent tax professional who explains what’s being filed—and why.
If you’re concerned a past return may have been prepared incorrectly, or if you’ve received an IRS notice tied to a preparer’s work, a tax resolution professional can review your filings, correct mistakes, and help protect you from further exposure.
When it comes to taxes, who you hire matters more than most people realize.
