The IRS warns of ghost preparers

The IRS warns of ghost preparers
                        

According to a recent release from the Internal Revenue Service, anyone who is paid to prepare or assist in preparing federal tax returns is required by law to have a valid 2019 Preparer Tax Identification Number. Paid preparers must sign the return and include their PTIN. However, the IRS is warning taxpayers to avoid unethical tax-return preparers that do not sign the forms, known as ghost preparers.

You hire someone to prepare your taxes for you. They discuss all your deductions and the big refund you will get. Their fee is based on a percentage of your refund, and they require payment in cash. They fill out all the forms for you and then have you sign on the dotted line, making sure you note your large refund amount.

The ghost preparer has had you sign the return as if you have filled it out, not them. They have not included their PTIN, nor signed the return, so there is no record of their involvement with your returns. For any problems that come up, you are on the hook. In some cases the unscrupulous preparer may have the refund go into their own bank account, rather than your account.

Always review your return. The IRS urges taxpayers to review their tax return carefully before signing and ask questions if something is not clear. And for any direct-deposit refund, taxpayers should make sure both the routing and bank-account number on the completed tax return are correct.

Get help to choose a tax-return preparer. The irs.gov website offers a plethora of information at tax season. The Choosing a Tax Professional page answers these questions: What kind of tax preparer do I need? How can I check a tax preparer’s credentials? What if I have a complaint about a tax preparer?

To view the page, visit www.irs.gov and search for the article, “Need someone to prepare your tax return?”

Individual taxpayers who need to contact the IRS for general questions can call tax assistance at 1-800-829-1040, email irs.gov.website.helpdesk@speedymail.com or visit U.S. Tax Center at www.irs.com (yes, irs.com).

If you’ve been targeted by a scam, help others avoid the same problem by reporting your experience at www.bbb.org/ScamTracker.

Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, read tips, follow us on social media and more.


Loading next article...

End of content

No more pages to load