Tax season is a common time for fraudulent schemes as scammers look to steal money and financial information. Here are some warning signs to look out for this year:
- If an advertisement promotes "fast" or "massive" refunds If a deal or refund sounds too good to be true, it probably is. Avoid flashy advertisements that promote a quick refund.
- If the tax preparer asks you to sign a blank tax return and promises to "take care of the rest" You should only sign a tax return after it has been completely filled out and explained by your tax preparer.
- If the tax preparer refuses to sign and state a PTIN, Enrolled Agent number, or CPA license number on the tax return All tax professionals must sign with their credential number.
- If there is inconsistent or vague communication
- If the tax professional demands payment upfront in gift cards, wire transfer, or peer-to-peer money transfer apps
- If the numbers look off If the amounts look different from federal forms you received or vastly different from recent years. If something looks off, ask questions before you sign.
- If the tax preparer does not provide you a copy of the tax return or related documents
Ways to protect yourself
-
Keep all communication, invoices, contracts (sometimes referred to as a tax engagement letter) received from your tax preparer.
-
Before you file, be sure to check that your tax preparer completed the "Paid Tax Preparer Only" section on your tax return (Form 1040). This signature attests that they helped prepare your taxes.
-
You are required to sign the IRS e-file Signature Authorization Form 8879. This gives the tax preparer permission to file on your behalf. It is required to sign this annually.