WASHINGTON, D.C. — With tax season underway, the Internal Revenue Service (IRS) is emphasizing the importance of selecting a qualified and trustworthy tax professional to help avoid the dangers of identity theft and fraudulent activity. The agency is urging taxpayers to carefully vet their preparers to protect their sensitive financial information and ensure compliance with tax laws.
While many tax preparers provide reliable, high-quality services, the IRS warns that some engage in unethical practices, leading to errors, fraud, or even identity theft. It reminds taxpayers that they are ultimately responsible for the accuracy of their tax returns, regardless of who helps prepare them.
IRS Resources to Assist Taxpayers
To support taxpayers in making informed decisions, the IRS offers several resources. The “Directory of Federal Tax Return Preparers with Credentials and Select Qualifications” is a searchable tool that lists qualified professionals who meet stringent industry standards. Additionally, the IRS provides a comprehensive guide on its website, with tips for selecting a reputable preparer and advice on identifying and avoiding unethical behavior.
Free Tax Preparation Services
For those who qualify, the IRS also offers free tax preparation options. Through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, individuals earning $67,000 or less and senior citizens can receive assistance from IRS-certified volunteers. These services include electronic filing, with many sites facilitating rapid returns via direct deposit. Taxpayers can locate the nearest VITA or TCE site using the IRS’s VITA Locator Tool or by calling 800-906-9887.
Red Flags for Questionable Preparers
The IRS is urging vigilance against unscrupulous “ghost” preparers, individuals who refuse to sign tax returns or include their Preparer Tax Identification Number (PTIN) as required by law. Such preparers often encourage taxpayers to submit incomplete or fraudulent returns, endangering their clients’ financial and legal standing.
Other warning signs include preparers who charge fees based on a percentage of the refund, promise unusually large refunds, or ask taxpayers to deposit refunds into the preparer’s personal account. Taxpayers should also be cautious of those who fail to request detailed records or suggest filing returns using pay stubs rather than official Form W-2 documents.
Guidance for Selecting a Trusted Preparer
The IRS outlines several steps taxpayers can take to ensure they choose a reputable professional:
- Verify Credibility: Use the Better Business Bureau to assess a preparer’s track record. For credentialed professionals like attorneys and CPAs, check with relevant state boards or associations. For enrolled agents, the IRS’s directory of tax professionals is a reliable resource.
- Discuss Fees Upfront: Reputable preparers are transparent about their charges and do not tie fees to refund amounts.
- Ensure Professionalism: Look for preparers who are available year-round to address post-filing concerns and those who electronically file returns as authorized IRS e-filers.
- Demand Accuracy: A trustworthy preparer will ask for proper documentation, including records of income and deductions. Taxpayers are advised never to sign incomplete or blank returns and to review all details carefully before submission.
Additionally, taxpayers should ensure any refunds are deposited directly into their personal account and verify that all bank account details on the return are accurate.
Importance of Vigilance During Tax Season
The IRS reiterates that taxpayers must be proactive about safeguarding their financial data and ensuring compliance with federal guidelines. By choosing competent, ethical preparers and remaining alert to potential scams, taxpayers can avoid costly errors and potential identity theft during tax season.
Looking ahead, the IRS states that it remains committed to equipping taxpayers with the tools and knowledge needed to meet their tax obligations securely and confidently. For taxpayers, vigilance remains the key to not only protecting their finances but also ensuring a smooth filing experience.
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