STATEN ISLAND, N.Y. — Filing your taxes can be a complicated, time-consuming endeavor, prompting millions of Americans to rely on the services of professional tax experts each year.
While allowing others to prepare your annual tax return can save you time, it can also result in major complications if you choose an untrustworthy party.
The Internal Revenue Service (IRS) has urged residents to exercise caution when entrusting their personal and financial information to an outside tax preparer, as some may be looking to make a quick buck off unknowing customers.
“Most tax return preparers provide honest, high-quality service. But some may cause harm through fraud, identity theft and other scams,” according to the IRS. “They may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund.”
When choosing a professional, residents should always ask for their Preparer Tax Identification Number, which all tax preparers are required to have and include on any tax return they prepare.
Additionally, tax professionals are required to sign all returns they’ve prepared, so if your return doesn’t include the preparer’s signature and Preparer Tax Identification Number, it should be viewed as a major red flag.
“These unscrupulous ‘ghost’ preparers often print the return and have the taxpayer sign and mail it to the IRS. For electronically filed returns, a ghost preparer will prepare the tax return but refuse to digitally sign it as the paid preparer. Taxpayers should avoid this type of unethical preparer,” the IRS warned.
Residents should review the preparer’s history, checking the Better Business Bureau website for the license status of the preparer and any past disciplinary actions.
Taxpayers are also advised to ask about service fees, ignoring any preparers who base their fees on a percentage of the refund or offer to deposit parts of the refund into their own financial accounts as payment.
The IRS warns…
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