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In this post, we’ll delve into how ghost tax preparers operate, the risks they pose, and the steps you can take to protect yourself from becoming a victim.
What Are Ghost Tax Preparers?
Ghost Tax Preparers are named for their ability to disappear. It’s a fitting name because, like real ghosts, they’re invisible when you need them and only leave behind trouble and confusion. But you won’t find a ghost preparer hiding in spooky old houses; they’re more likely to pop up in your email with a too-good-to-be-true offer to do your taxes or lurking in some corner of the internet promising to “maximize” your refund. But what they’ll actually do is maximize your fines and your headaches.
Why Should You Be Careful?
Imagine filing your taxes, thinking you’re done, only to realize the phantom you trusted never signed the return. A ghost preparer is someone who says they’ll take care of your taxes but disappears as soon as there’s a problem. They file your taxes without putting their name anywhere, which means if the IRS has questions, you’re the one who’s left holding the bag when they come knocking.
Common Tricks Used by Ghost Tax Preparers
Too Good to Be True Refunds
They might promise huge refunds that sound incredible. Unfortunately, if something sounds too good to be true, it probably is. The IRS will eventually ask for that money back. Very likely with interest.
No Signature, No Responsibility
If your tax preparer doesn’t sign your return, they’re not taking responsibility. That means if there’s trouble, they’re long gone, and you’re left to deal with the mess.
Vanishing Act
Need to ask them a question after they’ve filed your taxes? Unfortunately, you’ll find that their contact details might suddenly disappear.
How Can You Protect Yourself?
Make sure your tax preparer has a PTIN (Preparer Tax Identification Number)
This number means they’re registered to do the job right.
Review your return before it’s filed
Before you send your taxes off, check to make sure everything looks right. Look for their name and signature on the return. If it’s not there, that’s a big red flag.
Ask questions
A good tax preparer should be able to explain what they’re doing with your taxes. If they can’t give you clear answers, it might be time to find someone else.
How Paley & Prehn Can Help You
We’re not saying that all tax preparers are out to scam you, but it’s important to keep informed and to stay alert. As fun as it might be to think about avoiding the IRS altogether, in real life, that can quickly become a lot more trouble than it’s worth. At Paley & Prehn, we can assist you in resolving any disputes with the IRS, making sure that your tax filings are compliant, and protecting you from potential fraud. Let us handle the legalities, so you can have peace of mind during tax season.