Legal Question in Tax Law in California
Taxes
A friend of mine had someone do her taxes. This person is not an acountant, bookkeeper, etc., but charged my friend to do her taxes using turbo tax. She then had my friends' return direct deposited to her own account no my friends'. My questions are #1 Is it legal for her to charge a fee to do taxes if she doesn't have a license?, and #2 How is it possible for her to have my friend's return deposited into her own account?
1 Answer from Attorneys
Re: Taxes
Honestly, this does not sound legal. It is possible that the person was a registered tax preparer by the IRS, but it does not sound likely. The return money is deposited wherever the IRS is told to deposit it. IS this person refusing to release the funds to your friend? Depending on this size of this, I would have your friend speak to an attorney, as well as notifying the local authorities/IRS/FTB.