10 Connects Investigation: Who is really filing your taxes?

Hudson, Florida - A cable television salesman, a RV dealer, and a landscaper are all small business owners in the small town of Hudson who realized they have the same problem with the same person: Charles Crabtree.

They say Crabtree, of Hudson, approached them individually at their businesses, introducing himself as a Certified Public Accountant who could help them get their books in line so he could prepare and file their taxes.

"I figured, since he was a CPA, he knew the ins and outs of filing taxes as a business and all that," said cable television salesman Robb Burr.

The same thing happened with Jack and Jean Severance of Severance Landscapes on State Road 52. "Crabtree came into my business in 2000 and said he was an accountant," said Jack Severance.

Severance said he hired Crabtree to file his taxes. He says, Crabtree told him he had to get the payroll in line first and then he could file the taxes.

"He does nothing unless he's paid upfront," said Severance. So, he paid Crabtree by personal check for nearly nine years.

Burr did the same thing for the past three years.

And then there is Bill Weber, Russ Loven, Jerry Padot, and Joseph Teffau. They are other small business owners in and around Hudson who all have a similar story about Crabtree.

Teffau told 10 Connects, "He [Crabtree] didn't file our taxes. We didn't know until the IRS lady came with a badge."

Burr and Severance found out in a similar way. Burr recently received a statement from the IRS saying that he owed more than $28,000 in back taxes. Severance also received a statement from the IRS saying that he owed close to $16,000.

Severance said he questioned Crabtree in the past about not having to file taxes and said, "I was always given the answer that we've filed extensions because we don't owe enough in order to claim anything."

So, not only did these people pay Crabtree thousands of dollars, they now owe tens of thousands in back taxes.

10 Connects found out Charles Crabtree is not a licensed CPA in the state of Florida.

According to the Pasco County Sheriff's Office, Crabtree has no criminal history and there is no record of any complaints filed - that is, until now. As more victims come forward with formal complaints, the Economic Crimes Unit is looking into him for possible fraud.

"We've been dealt with in bad faith from the beginning," said Severance, who worries about his business, home, and his children. He said his biggest fear, "... is losing everything. Simple as that."

So, what's Crabtree's side of the story?

After numerous phone calls to his office, we caught up with him in person, when he came to pick up more money and documents from a client.

Pitzi: Why did you tell everybody you're a CPA when you're not?

Crabtree: I'm not a CPA. I never told anybody I was!
What do you have to say to these people who feel like you've ripped them off, sir?
I haven't ripped anybody off.

Pitzi:

Crabtree:

Pitzi: So, where is their money if you never filed their taxes?

Crabtree: They can get a refund.
You'll offer refunds to all of these people?

Pitzi:

Crabtree: Of course.
So, we've got you on record saying you will give them their money back and their documents?
They can have their documents back and if they don't owe me anything, and I owe them, I will definitely refund them.
What would they owe you for if you never filed their taxes?

Pitzi:

Crabtree:

Pitzi:

Crabtree: They owe me for financials, for doing their corporate records.

Pitzi: But what about the taxes, sir?

Crabtree: They need to be done. When I'm provided the documentation, I can do it.

After providing documentation for ten years, Crabtree's clients don't buy it.

"I don't think any of his [Crabtree's] clients are going to get their documents back nor will they be refunded the money," said Severance.

As these folks try to get justice for themselves, they hope their story can at least protect others.

We found out there is help out there for people in situations like this one. According to the Internal Revenue Service's Criminal Investigations Unit, these cases are more common than you think.

Special agent in charge Linda Osuna said, "There are fraudulent tax preparers out there and every year we see schemes where preparers create false tax returns or lie to the American public."

Osuna says first and foremost, never give up your original documents and always research the preparer or CPA.

Even if you hire someone to prepare your taxes and even file them, you are still held accountable for the filing, according to the IRS.

Tampa's IRS office of Criminal Investigations also says fraudulent tax preparers are becoming so prevalent that next year the IRS will launch "Enhanced Enforcement" to further protect people during the 2010 filing season.

To find out if someone is licensed at their profession in the state of Florida, click here.

To file a complaint or concern with IRS Criminal Investigations, click here.