In 2010, taxpayers filed more than 144 million tax returns to the tune of about $1.2 trillion in gross collections according to the IRS. Nearly 60% of the returns were handled by professional tax preparers. Since all tax specialists are not equal, picking the right tax settlement professional can mean the difference between getting your maximum tax refund and getting audited.
Here are 3 ways you could be scammed by a tax preparer:
You’re promised a big refund. If you are promised a big refund before any of your financial records have even been seen, chances are that you are being scammed. If the focus is a large refund, the tax specialist could be muddling your deductions and numbers, which could set you up for an IRS review and an audit headache in the future.
Your tax preparer lacks proper credentials or ratings. Make sure you aren’t just talking to a sales person, but an actual licensed tax specialist or CPA. Recently, the IRS started assigning Preparer Tax Identification Numbers (PTINs) to licensed preparers. While you are researching your tax settlement specialist, make sure to check the preparer’s Better Business Bureau listing. Look for an unblemished record and any reviews or complaints.
Your refund is made out to the tax preparer, or your fee is a percentage of your refund. It should be very concerning if the tax resolution specialist insists that your refund is made out to anyone other than you. Your tax preparer should not charge based on how small or large your refund is, as the industry standard is to charge a flat fee for tax preparation services based on the size and scope of your return. Charging a percentage could also mean that the preparer is inflating your return unethically, which could lead to mistakes and an audit.
If you want to avoid mistakes on your tax return, our experienced tax settlement professionals can help. Please visit professionaltaxresolution.com for more information on our tax services. You may also call us at (877) 889-6527 or email info@protaxres.com to receive a free, no obligation consultation.