Hiring a tax preparer is a convenient way to ensure your taxes are filed promptly and correctly — as long as the tax professional is legitimate. Unfortunately, fraudulent tax preparers set up shop around tax time and take advantage of taxpayers.
These tax preparers have the legally required Preparer Tax Identification Number (PTIN) and sign tax returns to take responsibility for any filing falsehoods. Fraudulent tax preparers don’t do any of this. They promise big refunds in order to gain more money from you upfront. Sometimes, they will file your return with faulty deductions and errors then run off with your fee, leaving you responsible for the mistakes.
Here are warning signs to watch out for this tax season so you don’t fall victim to a fraudulent tax preparer’s scam.
Red Flags Your Tax Preparer is a Fraud
- They request payment in cash.
- You aren’t given a receipt.
- Fees and charges are based on a percentage of your refund.
- They want the refund deposited into their personal bank account.
- The tax preparer marks your return as “self-prepared” rather than signing the form by name.
- They refuse to sign your return or enter a Preparer Taxpayer Identification Number (PTIN).
- You are asked to sign a blank or incomplete tax form.
- The preparer files the return without letting you review it.
- You’re promised a big refund before a full review of your finances.
- They don’t provide you with a final copy of your tax return.
Do your research before hiring a tax professional this year and watch out for the warning signs of fraud. Keep in mind that IRS Impostor Scams run rampant this time of year as well.
If you have questions about your taxes, reach out to us here at Guthrie County State Bank and we can help point you in the right direction!