Get your taxes done using TurboTax

so you are saying when you prepared their returns you didn't know they were falsifying their income but you took a contingent fee for the preparation. IRS regulations involving tax preparers are contained in Circular 230.  One of these other rules (§10.27 of Circular 230) prohibits a tax preparer from charging a contingent fee for the preparation of a return, including refund claims.  therefore, your best course of action is to consult with your own tax attorney.