Sidestepping Tax Fraud all 2022
A Tax Preparer scammed me! If I had a dollar for every facebook post I've seen about a scammer this season, I could sit my pretty ass down on a beach and not move. Although things have been relatively quite this year, Tax season has always been a scammers prime time dream. A lot of the money left on the floor from the pandemic relief shenanigans are definitely rearing their ugly heads during this tax season and while the IRS has hired 2,500 auditors and 10,000 new full time playa's gonna play. Let me help ya'll avoid some of the basic scams.
Scam 1: The vanishing preparer:
This gem charges 100% of their fee upfront to file your taxes and then vanishes with your fee. This is a long con, simply because you won't know if you were scammed until your refund does not show up or you get a notice from the IRS. When it’s time to submit, these scammers would claim they submitted your tax return, but most likely will not produce a copy of your return.
Scammer 2: The ghost preparer.
The most common issue the IRS encounters. They never affix their signature as the tax preparer on your tax return with their Preparer Taxpayer Identification Number. The return is usually rife with fraudulent income, credits or deductions and wont survive an audit and you'll have paid a hefty scam tax for the luxury of owing the IRS the entire balance along with penalty and fines as much as half of the fraudulent refund.
Scammer 3: The Skimmer
Simply runs off with your refund, but they could also use you and your dependants personal info to claim government benefits, credit and/or loans and credit in your name. This type of scammer is the worst because the violation doesn't end.
To avoid the scammers, make sure you keep complete records of your income and the ability to claim tax credits and deductions. Your tax preparer should explain your return to you in detail and have their identifying information on your return as a paid preparer. Double check your routing and account number on your tax return and if you have filed for a bank product, make sure your refund listed on line of the 1040 is traceable using the IRS Where is My Refund (WMR) tool. To file a complaint, you may click https://www.irs.gov/tax-professionals/make-a-complaint-about-a-tax-return-preparer
