The IRS Dirty Dozen: Unscrupulous Tax Preparerers

Posting by John Merchant

The Internal Revenue Service (IRS) has released its annual “dirty dozen” for 2015. The annual dirty dozen are the top twelve tax related scams that IRS has found are being perpetrated on unsuspecting victims each year. Once again, Unscrupulous Tax Preparers are on the list. The IRS reports that approximately 60% of all taxpayers use a paid preparer. While IRS acknowledges that most preparers provide very good service, every year there are some that run scams to defraud the government or to cheat their clients. Either way, the results can be devastating as these scams can lead to financial loss or even criminal prosecution for the taxpayer.

The unscrupulous preparers take advantage of honest taxpayers in several ways. Some promise large refunds and then take unallowable deductions to achieve their goal. Others prepare tax returns through April 15th and then simply disappear, leaving no one to help the taxpayer if the IRS questions the return. A few advertise themselves as licensed tax preparers when, in fact, they have no license and no training or background in tax law or tax return preparation.

The IRS offers several tips to taxpayers. These include:

  • Avoid preparers that base their fee on the size of your refund.
  • Always have any refund sent to you, not to the preparer.
  • Review your return carefully and make sure that you agree with amounts reported.
  • Make sure that the preparer signs your return and includes their Preparer Tax identification Number (PTIN).

For a complete list of IRS tips to taxpayers, go to www.irs.gov. Remember, even if you use a paid preparer, you are still responsible for the accuracy of your tax return. Choose your preparer carefully.

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