by Dave Kutcher
It is that time of year again … and the IRS warns you of a common problem during annual tax season, “Ghost Preparers” popping up to encourage taxpayers to take advantage of tax credits and benefits for which they don’t qualify. While there are many, many tax preparers offering good, high-quality services, there are always the unscrupulous ones out there looking to scam people into providing personal information that could be used against them in many ways, starting with scamming them out of their tax refunds.
Tax preparation is an unregulated industry and vulnerable taxpayers are at high risk of fraud and other shady tactics. Typically, these scammers promise access to credits and benefits luring unsuspecting people into providing personal information such as social security numbers, dates of birth, etc. that all make it easier to steal your identity, but these scams also include stealing your tax refund itself.
Taxpayers should check a tax preparer’s credentials and qualifications to try and ensure they are who they say they are and that they can help you with your needs. You can visit the IRS website for a directory of Federal Tax Return Preparers with credentials and select qualifications.
Look for RED FLAGS … shady fee tactics, use of false income and requesting deposits of refunds to anything other than the client’s bank account should all raise big red flag warnings to taxpayers. Additionally, if the preparer isn’t seeking relevant documents such as records, receipts, tax forms and the like and isn’t asking pertinent questions such as total income, deductions, credits these are additional red flags. If your preparer isn’t willing to sign your return as a preparer, this too should raise a red flag.
If you are being solicited, meaning you are receiving a request to gain access to something like assistance with filing your return, be on the alert. The IRS and any credible institution would never call or email requesting sensitive personal information. Folks that are less savvy with technology may be attracted to an offer of help for online (electronic) filing, but there are already several free resources and online assistance tools offered within the IRS website-so there is little need for hiring someone to help.
Even tax preparers, the good ones, need to be wary of new scams which today include phishing emails posing as new clients-and those phishing emails contain malicious links and attachments … inadvertently allowing malware onto their computer and gaining access to the personal information of the preparer’s clients.
Additional scams to keep your eyes and ears open for and to warn your loved ones, particularly the most vulnerable among us, include but are not limited to the list below;
•Seeking donations to fake charities
•Offers in compromise where the scammer promises to get reductions in fines and penalties
•False Fuel Tax Credits
•Assistance with online accounts
•Aggressive Promotion of Employee Retention Credits
•Phishing and Smishing scams
You can find out more about each of these possible scams and more by visiting the IRS.gov website and searching The Dirty Dozen.
If you suspect you are the victim of a scam or wish to report suspicious activity by someone seeking personal information or otherwise… “who you goin’ to call….GHOST BUSTERS?”
The IRS has a Ghost Buster process, and they highly encourage people to report tax preparers who deliberately prepare improper returns and any activity that promotes improper or abusive tax schemes.
To report an abusive scheme or a tax preparer who may be unscrupulous, you can submit an online FORM 14242-Report Suspected Abusive Tax Promotions or Preparers or you can mail or fax the completed form and any supporting documentation to the IRS Lead Development Center using the information provided below.
Internal Revenue Service Lead Development Center
Stop MS5040
2400 Avila Road
Laguna Niguel, CA 92677-3405
FAX: 877-477-9135
My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. We encourage you to make an appointment and get ahead of your concerns as early as is possible. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
Be the first to comment