The Department of Revenue is processing 2023 income tax returns. For more information, please read the Department's announcement.

 
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Carefully Choose A Tax Preparer

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The sixth Dirty Dozen tip from the IRS reminds taxpayers to carefully choose their tax preparers. The common warning signs of shady tax professionals include: charging a fee based on the size of the refund, asking people to sign a black return or “ghost” tax preparers refusing to sign the tax return. It is important to always rely on a trusted tax professional while filing your taxes. 

If you are caught using a fraudulent tax preparer you could be at jeopardy of losing money, personal information, data and more. Taxpayers should choose a tax preparer as carefully as they choose a doctor or lawyer. They are trusted with sensitive personal and financial information. Verifying credentials and qualifications of tax preparers is always recommended. 

It is important to keep in mind that a taxpayer’s individual needs will determine which kind of preparer is best fit for them. To prepare federal tax returns, tax professionals are required to have an IRS Preparer Tax Identification Number (PTIN). There should be no issue when asking your personal tax preparer for their PTIN. 

No matter who prepares the return, taxpayers are responsible for the information on their income tax return. A major red flag to avoid is when the tax preparer is unwilling to sign on the dotted line. These preparers are also known as “ghost” preparers, avoid them at all costs. Not signing the return could mean the preparer is looking to make a quick profit by promising a big refund or charging fees based on the size of the refund. 

Look out for taxpayers who ask for cash only payments, do not provide a receipt, invent false income to try to get their clients more tax credits, claim fake deductions to boost the size of the refund or direct refund into their personal bank accounts. 

If you or someone you know falls victim to a shady tax professional, please visit our Tax Fraud Prevention webpage for more information on how to report tax scams, identity theft and tax fraud.