Donate Your Car Sacramento

I always do my taxes and has always been honest with regards to amount of deductions that I claim. I also have a friend that I help in doing her taxes for free. This time she said that a CPA of her friend said that she could get more refund if this CPA will do it for her for a fee. So we agreed that I will do hers and she’ll also let the CPA do it so we could compare the difference. She did get $1000 refund more than what I calculated. Upon reviewing what the CPA did, I discovered that she added a total of $5K donations in cash and goods named to goodwill and a certain church even though my friend did not actually donated. On top of that she added a $4K of mileage expense in connection with her work, although she really doesn’t use her car because she’s a stay-in caregiver. My friend is single and always use standard deduction. Because of what the CPA did, she now itemized. I think its unlawful.
But that’s the point. How often and unlikely would the IRS audit one tax payer to discover one CPA who’s doing fraud in favor of their client? I still think that I should report the CPA, but then I’m afraid that I will loose my friend. She already filed her return and this is the first time that she’s getting refund this much.