Q&A of the Week February 14, 2024
Question
How can I avoid a "ghost preparer" for my tax return?
Answer
A ghost preparer is someone who doesn't sign tax returns they prepare.
These are warning signs for a ghost preparer:
Promises a big refund
Charges fees based on the size of the "expected" refund
Requires cash payment and does not provide a receipt
Invents income for the taxpayer to qualify for tax credits
Claims fake deductions to increase the size of the refund
Directs refunds to their bank account - and not the taxpayer's account
Doesn't sign the paper or e-filed tax return
Be aware of these warning signs and make sure to do the following:
Choose a tax preparer wisely. This article on IRS.gov provides helpful information and links: https://www.irs.gov/tax-professionals/choosing-a-tax-professional.
Review your tax return carefully and ask questions before you sign your tax return.
Verify your routing and bank account number before you sign your tax return.
If you believe you are a victim of a ghost preparer, click here to report preparer misconduct to the IRS: https://www.irs.gov/pub/irs-pdf/f14157.pdf