Don't Be The Victim of a "Ghost" Tax Return Preparer

SeaBreeze

SeaBreeze

Endlessly Groovin'
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My husband has always done our tax returns, and those of his parents when they were alive. If I ever need to use a tax preparer, I will be very careful to make sure they are reputable and legitimate. IRS

IR-2019-09, February 7, 2019


WASHINGTON – Today, towards the end of the second full week of the 2019 tax filing season, the Internal Revenue Service warned taxpayers to avoid unethical tax return preparers, known as ghost preparers.


By law, anyone who is paid to prepare or assist in preparing federal tax returns must have a valid 2019 Preparer Tax Identification Number, or PTIN. Paid preparers must sign the return and include their PTIN.


But ‘ghost’ preparers do not sign the return. Instead, they print the return and tell the taxpayer to sign and mail it to the IRS. Or, for e-filed returns, they prepare but refuse to digitally sign it as the paid preparer.


According to the IRS, similar to other tax preparation schemes, dishonest and unscrupulous ghost tax return preparers look to make a fast buck by promising a big refund or charging fees based on a percentage of the refund. These scammers hurt honest taxpayers who are simply trying to do the right thing and file a legitimate tax return.


Ghost tax return preparers may also:

  • Require payment in cash only and not provide a receipt.
  • Invent income to erroneously qualify their clients for tax credits or claim fake deductions to boost their refunds.
  • Direct refunds into their own bank account rather than the taxpayer’s account.
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.


The IRS offers tips to help taxpayers choose a tax return preparer wisely. The Choosing a Tax Professional page has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.


Taxpayers can report abusive tax preparers to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.
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That sounds like the kind of "tax preparer" that Debudon used....when she was still posting here. Anyone who has a computer, and is at all savvy, can quickly do their own taxes with programs like Turbotax or H&R Block software, and for a lot less than any "accountant" will charge. This time of year, many stores, like Walmart, have kiosks where people can get their taxes done, in person, by a reputable company.
 
Don M. said:
That sounds like the kind of "tax preparer" that Debudon used....when she was still posting here. Anyone who has a computer, and is at all savvy, can quickly do their own taxes with programs like Turbotax or H&R Block software, and for a lot less than any "accountant" will charge. This time of year, many stores, like Walmart, have kiosks where people can get their taxes done, in person, by a reputable company.
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I agree, the guy Deb was using didn't sound very Kosher, IMO. I've seen those folks at Walmart who do taxes for customers, I always thought they didn't look very professional, and I doubted I'd want to do such a personal thing in a Walmart store....but never say never. :)
 

Here the public libraries have the main tax forms & instruction booklets available free . It's a whole new ball game this year. If you do them yourself, or spouse does, very worth studying up on before going to any QUALIFIED preparer or attempting it on line.
 
The folks in the local Walmart work for Jackson Hewitt. JH and Block and Liberty seem to have changed their business model from making money by doing returns, to making money on "refund advances". I looked into buying a Liberty franchise 8 or 9 years ago, and that was my takeaway. I've used turbotax for a number of years, and it does an okay job for straight forward returns, but if you have a more complex return because of, oh say, rental property or significant capital gains/losses, I suggest you find a qualified Accountant to do your return to minimize the tax bite.

Hoot, MBA/CPA
 

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