TAXES: Nowadays there are too many scammers looking to separate people from their hard-earned money. So in time for tax season, the Internal Revenue Service is offering some tips to make sure your tax preparer is legitimate.
“Be on the lookout for unscrupulous return preparers, one of the most common ‘Dirty Dozen’ tax
scams seen during tax season,” the agency warned.
“Choose your tax return preparer carefully because you entrust them with your
private financial information that needs to be protected,” said IRS Commissioner
John Koskinen. “Most preparers provide high-quality service but we run across cases
each year where unscrupulous preparers steal from their clients and misfile their
taxes.”
Here are a few tips when choosing a tax preparer:
• Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN). Paid tax
return preparers are required to register with the IRS, have a PTIN and include it
on tax returns.
• Inquire whether the tax return preparer has a professional credential (enrolled
agent, certified public accountant or attorney), belongs to a professional
organization or attends continuing education classes.
• Check the preparer’s qualifications.
• Check the preparer’s history. Ask the Better Business Bureau about the preparer.
Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the
State Bar Association. For Enrolled Agents, go to IRS.gov and search for “verify
enrolled agent status”
• Ask about service fees. Avoid preparers who base fees on a percentage of their
client’s refund or boast bigger refunds than their competition.
• Ask to e-file your return. Make sure your preparer offers IRS e-file. Paid preparers
who do taxes for more than 10 clients generally must file electronically. The IRS
has processed more than 1.5 billion e-filed tax returns. It’s the safest and most
accurate way to file a return.
• Provide records and receipts. Good preparers will ask to see your records and
receipts. They’ll ask questions to determine your total income, deductions, tax
credits and other items. Do not rely on a preparer who is willing to e-file your
return using your last pay stub instead of your Form W-2. This is against IRS e-file
rules.
• Never sign a blank return. Don’t use a tax preparer that asks you to sign an
incomplete or blank tax form.
• Review your return before signing. Before you sign your tax return, review it and
ask questions if something is not clear.