IRS warns individuals to stay clear of shady tax preparers
Channel: Accounting Instruction, Help, & How To
Date: 30/03/2023

Dirty Dozen: IRS warns individuals to stay clear of shady tax preparers; offers tips on carefully choosing tax professionals
https://www.irs.gov/newsroom/dirty-dozen-irs-warns-individuals-to-stay-clear-of-shady-tax-preparers-offers-tips-on-carefully-choosing-tax-professionals
https://accountinginstruction.info/
The Internal Revenue Service today continued the Dirty Dozen series by cautioning taxpayers to avoid unscrupulous tax return preparers and provided important tips to find the right tax professional.

People should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. Some "ghost" tax preparers refuse to sign the tax return or ask people to sign a blank return. These are all common warning signs, and people should always rely on a trusted tax professional, and the IRS offers a variety of resources to help.

"Most tax professionals offer excellent advice and can really help people navigate complex tax issues. But we continue to see instances where taxpayers are "ghosted" by unscrupulous tax preparers with bad advice who quickly disappear," said IRS Commissioner Danny Werfel. "We encourage taxpayers to check out the tools and resources available to them to ensure they find the right tax professional for their needs."

Unscrupulous tax return preparers mark day six of the IRS' annual Dirty Dozen campaign – a list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more. Some items on the Dirty Dozen are new, while others are re-emerging. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes.

Working together as the Security Summit, the IRS, state tax agencies and the nation's tax industry, including tax professionals, have taken numerous steps since 2015 to warn people about common scams and schemes during tax season and beyond that can increase the risk of identity theft. The Security Summit initiative is committed to protecting taxpayers, businesses and the tax system from scammers and identity thieves.

Choose carefully: Check credentials of tax return preparers
Taxpayers should choose a tax preparer as carefully as they choose a doctor or lawyer. After all, the tax preparer is entrusted with sensitive personal and financial information. While there are different types of tax preparers with varying levels of credentials and qualifications, there are constants when it comes to finding a preparer:

A taxpayer's individual needs will determine which kind of preparer is best for them.
Taxpayers are ultimately responsible for all the information on their income tax return, regardless of who prepares the return.
Tax professionals are required to have an IRS Preparer Tax Identification Number (PTIN) to prepare federal tax returns.
The IRS offers resources for taxpayers to educate themselves on types of preparers, representation rights, as well as a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This directory can help taxpayers find a return preparer with specific qualifications to fit their needs. The directory is searchable and sortable.