4/23/2009: We interviewed Mr. James McCormick, the local Public Information Officer for the IRS Criminal Investigation for the Phoenix Field Office, about this case. Below is the interview.

Q: How long has the IRS been following this case?
A: Unfortunately we cannot comment on that.

Q: Are there similar cases being followed by the IRS, Criminal Investigation Division, that the Vietnamese community needs to be aware of?
A: There are similar cases where the tax payers are being preyed on. The Vietnamese community needs to know to shop around for a good, creditable tax preparer since they are ultimately responsible for all items on the tax returns.

Q: When will Mr. Nguyen be serving his sentence? I still see him around.
A: This date is set by the court. Mr. Nguyen should report in June 4.

Q: I heard that he is serving his sentence, but since the County Jail is cutting back expenses, they are allowing people to work [outside of jail] during the day and then serve their sentences at night, in jail. Is this true?
A: This is not true for criminals in the federal prison system , which Mr. Nguyen is.

Q: Can Mr. Nguyen still prepare tax returns on behalf of his clients now that he is sentenced?
A: In Arizona, you do not need a license to prepare tax. However, The court has barred Mr. Nguyen from ever preparing tax returns again , this was said by the Judge in open court and should be part of the Judgment and commitment order related to his sentence.

Q: The Press Release says that Mr. Nguyen assisted in nearly three dozen tax returns. Are those recent tax returns? If I have filed my taxes with Lucky Immigration, what should I expect from the IRS, if anything?
A: We looked at both historical and recent tax returns. You may be called upon to have an Audit if it is deemed necessary.

Q: Will I still be responsible for the fraudulent activities on my tax returns if I have no knowledge of them?
A: You will, but not criminally responsible.

Q: Lucky Immigration also provides other services, including filing immigration paperwork. Can they still provide those services?
A: As far as I know, they can, but once you have a criminal record, you may not be considered creditable for helping individuals to assist with legal paperwork.

Q: What advice do you have for people using a tax preparer?
A: Shop around for a good tax preparer. Remember that you are responsible for the tax returns. Some other suggestions include:

• Avoid preparers who claim they can obtain larger refunds than other preparers. If your returns are prepared correctly, every preparer should derive substantially similar numbers.
• Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.
• Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.
• Choose a preparer you will be able to contact and one who will be responsive to your needs. Ask who will actually prepare the return before engaging services. Avoid firms where your work may be delegated down to someone with less training or some unknown worker. You should know exactly who works with your tax matters at all times and how to contact him or her; after all, you are paying for it. Determine if the preparer is exporting your return to a foreign country for preparation. Foreign countries do not have the same security and privacy laws as the United States nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.
•  Investigate whether the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs, the state’s bar association for attorneys or the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers.
• Determine if the preparer’s credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers. As of 2008, California and Oregon are the only two states that regulate paid tax preparers. Is he or she an Enrolled Agent, Certified Public Accountant (CPA) or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return that they signed as a preparer.
• Find out if the preparer is affiliated with a professional organization that provides or requires its members to pursue continuing education and holds them accountable to a code of ethics.
• Check IRS.gov for information regarding abusive shelters and other tax schemes and scams. Remember, if it sounds too good to be true, chances are it is. Unfortunately, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients. Examples of improper actions by unscrupulous preparers include the preparation and filing of false paper or electronic income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions.

Q: If I need additional questions, who can I contact?
A: The best way is to visit the IRS web site at http://www.irs.gov and search for the keywords. There are plenty of information out there. You can also visit the IRS office and talk to our experts at the windows at the walk-in area. Report suspected tax fraud and abusive return preparers by completing Form 3949-A and mailing it or a letter with similar information to: Internal Revenue Service Fresno, CA 93888