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This type of fraud involves a tax preparer stealing your identity or filing a return without authorization. It is important to be aware of this type of Tax Return Preparer Fraud and know how to protect yourself from it.
What are some common examples of tax return preparer fraud?
One common example of tax return preparer fraud is when a preparer changes the direct deposit information for your refund without your knowledge or authorization. This can result in you not receiving any money from your refund, leaving you out of pocket, and having to go through lengthy processes to try and get back what was stolen from you. Another example is when you meet with a return preparer but decide not to hire them, yet they still file a return with your information that year. This can cause issues with the IRS if they believe it’s fraudulent activity.
How Can You Avoid Tax Return Preparer Fraud?
The best way to avoid tax return preparer fraud is by researching potential candidates thoroughly before deciding on one. Ask for references and look up reviews online about the individual’s services and business practices. Also, take caution if someone guarantees that they can get you an unusually large refund or promises extremely low fees for their services—as these are both red flags that something might be wrong. Additionally, always obtain copies of any forms that have been filed on your behalf so that you can verify their accuracy should anything arise later on down the line.
Tax return preparer fraud can happen even with the best intentions in place–which is why it’s important to stay vigilant and do your due diligence when hiring one for your own needs. Be sure to research potential candidates thoroughly before making any decisions, keep an eye out for red flags such as unusually large refunds or incredibly low fees, and always request copies of any forms filed on your behalf so that you can double-check their accuracy at a later date if necessary. Taking these precautions will help protect you from becoming a victim of tax return preparer fraud!