How to Avoid Tax Preparation Scams

With so much to do and so many other important things to worry about, many people will be looking for help over the coming weeks and months with their income tax returns. While some people might just choose the first name they see to file their taxes, whom you choose can actually make a big difference.

Not only can your tax preparer play a big role in how much money you get back, but also there are some preparers that are simply looking to scam you. With nearly 60 percent of all tax returns being done by paid tax professionals, that means there is a lot of risk to taxpayers if they don’t choose wisely.

Fraudulent tax preparers use many different kinds of scams to cheat people out of money. These scams vary, with some preparers filing false returns in order to collect more money and others being outright scams, wherein the preparer files unauthorized returns and then takes most or all of the refund. The real problem for you the taxpayer is that if the IRS catches these fraudulent returns, you will be held liable even if you weren’t aware of your tax preparer’s actions.

So what should you do to avoid these scams? These are just a few ideas to keep in mind:

  • Stay away from preparers asking for a percentage of your refund as their fee.
  • Make sure you always look at the fine print and don’t sign a blank return.
  • Never hand over financial info to a preparer unless you’ve chosen him/her to prepare your return.
  • Make sure the preparer has signed the return and has included his/her IRS Tax Preparer Identification Number (PTIN).
  • Don’t trust a preparer who doesn’t ask a lot of questions.
  • Check out what the IRS says about choosing a tax professional.

Don’t get scammed by a shady tax preparer, make sure you do your homework first. Of course, you can always trust GROCO to give you honest and timely service. Our goal is to help you pay as little in taxes as legally possible. Contact us today at 1-877-CPA-2006.

Posted in
How Some Big Companies Are Maximizing Their Tax Benefit

70% Qualify for Free 1040 Software

70% Qualify for Free 1040 Software People with an income up to almost $50,000 will get free access to tax return preparation software, the Internal Revenue Service said Tuesday. That means 70 percent of taxpayers can prepare their taxes for free using software available through the IRS Web site — www.irs.gov Still, that is fewer…

Three Ways to Avoid Tax Audits, Expanded

Wealthy Should Prepare for Audits by Keeping Organized Records

Wealthy Should Prepare for Audits by Keeping Organized Records Expensive art collections, investment hobbies and offshore bank accounts may raise red flags when it comes to IRS audits. In 2011, the Internal Revenue Service audited 29.93% of taxpayers who reported more than $10 million of annual income [1]. This percentage increased by 18.38% from 2010.…

What Separates Ultra Rich From Everyone Else?

What Separates Ultra Rich From Everyone Else? By Alan Olsen There’s an old cliché in the sporting world that many coaches have used in an effort to help lift their teams when they face what appear to be insurmountable odds. The saying goes: “They put their pants on one leg at time,” or something very…

“Madoff” or “Ponzi-Type” Tax Losses

“Madoff” or “Ponzi-Type” Tax Losses Update: 12/9/09 Wall Street Journal Article: http://online.wsj.com/article/SB124623441944466541.html In addition to other good information about the type and amount of refunds people are obtaining it says in the last paragraph: “On Monday, Sen. Charles Schumer (D., N.Y.) proposed a bill that seeks to further expand the carry-back period up to six…