Tax season can be stressful enough without the added worry of fraud or mistakes. That’s why the IRS is urging taxpayers to carefully vet their tax preparers to avoid identity theft and financial harm.
The reality is that while most tax preparers are trustworthy, some engage in fraudulent activities, from promising inflated refunds to misusing sensitive personal information. Protecting yourself starts with making informed choices.
Why Does Your Choice of Tax Preparer Matter?
As a taxpayer, you are legally responsible for the accuracy of your tax return—even if someone else prepares it for you. Selecting a skilled and ethical tax professional not only ensures your return is accurate but also safeguards your sensitive financial data.
Tips for Choosing the Right Tax Professional
Review Before You Sign Always review your tax return thoroughly before signing. Never sign a blank or incomplete return, and ensure your refund is deposited into your account—not your preparer’s.
Check Their Credentials Use the IRS Directory of Federal Tax Return Preparers to verify qualifications. Look for professionals with recognized credentials, such as Certified Public Accountants (CPAs), Enrolled Agents (EAs), or attorneys.
Confirm They Have a Valid PTIN Anyone paid to prepare or assist with federal tax returns must have a valid Preparer Tax Identification Number (PTIN). Don’t hesitate to ask for proof.
Be Wary of “Ghost” Preparers These individuals prepare tax returns but refuse to sign them as the paid preparer. This is a red flag for unethical behavior and potential fraud.
Understand Their Fees Avoid tax preparers who charge fees based on the size of your refund or promise “larger refunds than competitors.” Discuss fees upfront and in detail.
Resources to Help You File Safely
The IRS provides free tools and services to make filing your taxes easier and safer:
- VITA and TCE Programs: If your income is $67,000 or less, or if you’re over 60, you may qualify for free tax preparation through these IRS-certified volunteer programs.
- IRS Free File: An online tool for filing simple returns electronically at no cost.
Stay Alert for Red Flags
Fraudsters often target taxpayers during filing season. Here’s what to watch for:
- Promises of inflated refunds.
- Requests to deposit refunds into third-party accounts.
- Filing a return using a pay stub instead of a W-2, which violates IRS rules.
Tax season is an opportunity to take control of your financial health. Choosing the right tax preparer not only ensures your return is accurate but also protects your personal information from those who might misuse it.
Reach out today for expert guidance and peace of mind. Contact us now to get started! You may also Email us at info@axiomtax.cpa, or call (813) 977-0089 for a confidential consultation.
