Caveat Emptor – Buyer Beware – Understanding the Role of the Tax Preparer in Your Taxes Part 1: The Red Flag So, to give you a little background in to why this subject is so fascinating to me, let me tell you a short story about my first fraud case. I was a young auditor 20 years ago at the IRS and I was doing a basic Schedule C (small business) audit. First red flag was the “owner” had another full time job and this Schedule C coincidentally brought his AGI down to the ex