Tax Scammers: Fraudulent Return Preparers

Last updated on July 23, 2023

Most people trust a tax return preparer to honestly handle their returns, but there are some “professionals” who want to make quick money by filing fraudulent returns. Fraudulent return preparers will use false deductions and credits to get huge refunds without the knowledge of the taxpayer. Sometimes, though, they will convince a taxpayer to collaborate with them to file a false return and pocket a large refund.

Taxpayers need to be careful when choosing a tax preparer. It’s important to remember that even if someone else prepares the tax return, the taxpayer is ultimately responsible for all the information provided. Therefore, they should be cautious when choosing a tax return preparer. These tips can help you to identify a fraudulent tax filer if you encounter one:

• Return preparers who claim that they can get you a large refund are less likely to be trustworthy.
• Avoid hiring preparers who base their fee on a percentage of the amount of the refund.
• Ensure that your preparer enters the Preparer Tax Identification Number (PTIN) on your tax return.
• Never sign a blank tax form. It’s best to sign it before submitting it to the IRS so that no one can make changes to it without your knowledge.

If you are careful while choosing a tax return preparer, you can ensure safe filing every time.