Avoiding Shady Tax Preparers: Tips for Choosing a Reputable Tax Professional

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Avoiding Shady Tax Preparers: Tips for Choosing a Reputable Tax Professional

Guidance from the IRS on Safeguarding Your Finances and Avoiding Tax Fraud

As the tax filing season approaches, the Internal Revenue Service (IRS) has issued a warning to individuals to be careful when picking tax preparers. The agency has advised taxpayers to steer clear of “shady” tax preparers who may engage in false activities or provide Incorrect information. In addition to the warning, the IRS has also provided tips on how individuals can carefully choose reliable tax professionals.

The IRS has urged taxpayers to research and choose their tax preparers carefully. IRS recommends selecting a registered tax preparer with a valid Preparer Tax Identification Number (PTIN). The PTIN is a requirement for paid tax preparers and helps ensure that the preparer is registered with the IRS.

Another important tip provided by the IRS is to check the tax preparer’s qualifications and experience. Taxpayers should ask about the preparer’s licence, including any certifications, licenses, or education in tax preparation. Additionally, taxpayers should inquire about the preparer’s experience in handling similar tax situations or tax issues.

The IRS also recommends that taxpayers be wary of tax agents who make unrealistic promises or guarantees. Such as promises of larger refunds or guarantees that the IRS will not audit their tax returns. Such promises are often red flags and can indicate false activity.

Moreover, the IRS advises taxpayers to review and understand the information in their tax returns carefully before signing them. This involves verifying accurate reporting of income and deductions, as well as correct personal information, like social security numbers.

In addition to these tips, the IRS has also advised taxpayers to be careful of tax agents who ask to be paid a % of the refund amount or charge high fees. Tax professionals charge a flat fee for their services and do not ask for a % of the refund amount.

The consequences of choosing a shady tax agents can be severe. Taxpayers may face charges, interest, and extra taxes if their tax returns contain errors or false information. In some cases, taxpayers may even face criminal charges if they consciously file false tax returns.

In conclusion, the IRS warning about shady agents highlights the importance of carefully choosing reputable professionals. When selecting a tax preparer, taxpayers should diligently research and choose a skilled and experienced preparer who has a valid PTIN. Additionally, taxpayers should be wary of preparers who make unrealistic promises, charge high fees, or engage in false activities. Following these tips, taxpayers can avoid potential financial and legal consequences and ensure that their returns are correct and legitimate.

The tax laws are very complex. Our short blog articles can only partially cover all the rules and nuances. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out alone. Consider trying the IfindTaxPro marketplace by posting your project and signing up here. 

If you are a licensed tax professional interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task, message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.

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