A big tax refund might sound tempting, but beware of the ghost tax preparer.
TheInternal Revenue Service estimatedthat $9.1 billion worth of tax fraud and financial crimes were committed in 2024.
Here’s how they work and how to avoid them.
File your tax return with one of CNET’s tax partners.
Ghost preparer tax scams can vary, but they usually go something like this.
After you file, the ghost preparer might even take off with your refund, then disappear.
Ask for recommendations
Ask your friends and family which professional tax preparer they use.
A trusted tax preparer who’s been doing their taxes for years is likely a safe bet.
Next, ask about the service’s pricing structure.
Tax accountants should charge a flat or hourly rate and provide receipts for their services.
And don’t forget to ask for a list of previous clients who can offer referrals.
ping the clients to ask them about their experience, including the accuracy of their returns.
If they can’t provide one, don’t use them.
It’s against the law to get paid for preparing taxes without a PTIN.
Check all information for accuracy and ask your preparer for clarification on anything you don’t understand.
Finally, double-check your tax preparersigns your tax returnand includes their contact information on the form.
What if you fall victim to a ghost tax preparer scam?
The consequences of knowingly filing a false return can be severe.
At a minimum, the IRS will force you to pay back the refund, plus interest and penalties.
But you could alsogo to prisonfor filing a false tax return.
you might start by contacting the IRS and the police.
After you hit up the IRS and police, get your taxes done correctly by a reputable tax professional.
