Many taxpayers are suspected of using bad tax advisors. For others, refunds have been misappropriated by the tax advisor. So it’s important to educate yourself about tax advisors before you use their services. Here are some tips to help you recognize a fraudster.
1. Prices depend on the amount of the refund
Avoid document creators who use the amount of your tax refund as the basis for their consulting fees. This is because these professionals use questionable methods to increase your refund, such as inflating numbers or including non-existent dependents. It is important to avoid these people, as they risk both civil and criminal prosecution if they increase reimbursements in this fraudulent manner.
2. Prepayers promising high repayments
Another worrisome sign is people who entice you to use their services by promising very high tax refunds. Again, these professionals can easily get into trouble with the tax authorities, as they can increase the refund amount illegally.
3. PTIN Qualifications
When looking for a tax advisor and hiring their services, it is important to make sure that the tax advisor has a PTIN (Preparer Tax Identity Number) The IRS requires all tax advisors to meet certain strict requirements and apply for a PTIN. issues a PTIN once it has satisfied itself that the preparer is a trusted individual. Ensuring that the tax advisor has a PTIN is, therefore, an important precaution to avoid unscrupulous tax advisors; in addition to the PTIN, the tax advisor must sign the tax return before sending it.
4. Remittance of tax refunds to the preparer’s account
Another danger signal is a tax advisor giving out their address for a tax refund or requesting that the refund be transferred to their bank account. Tax agents should always list the taxpayer’s account for the tax refund.
5. Signing a blank form
Another problem is the tax preparer who prepares your tax return and sends it to you without you ever seeing it. Some tax preparers ask you to sign a blank tax return form. They will then tell you that they will prepare and send the tax return on your behalf and that you will not have to confirm its contents. Such an agreement can lead to tax advisors making false statements for their own satisfaction. Even if a taxpayer uses the services of a tax return preparer, he or she is responsible for all information contained in the tax return. Therefore, before signing a tax return, the information provided should be verified.
About Author
Villie Walters Ramirez is a 32-year-old working as nyc tax preparers at a taxation firm who enjoys tax filing, accounting, and bookkeeping. She has a post-graduate degree in accounting, and she has a severe phobia of cats. She enjoys traveling A lot.
