Dirty Dozen 2020: Unscrupulous Return Preparers

    A tax professional is entrusted with the most sensitive personal data of the Taxpayer, so it is critical to select the right preparer. Most are honest and provide high-quality service. However, there are some who are intent on committing fraud, harming others, and talking Taxpayers into making choices that they will regret later. These activities have earned a place on the Internal Revenue Service (IRS) Dirty Dozen list of 2020.

    This year Taxpayers should be especially vigilant because of the COVID-19 pandemic possibly making it more difficult to get in contact with their tax professional. This can leave them vulnerable to “ghost” preparers. They make serious mistakes, expose their clients to tax fraud, and then disappear. They never sign the tax returns they work on. By law they must sign and use their Preparer Tax Identification Number (PTIN).

    They may make promises of large refunds, often by using tax credits that do not apply, this leaves the Taxpayer at risk of losing that refund and being charged with tax fraud. The Taxpayer is always responsible for what is on their tax return. Never sign a blank tax return.

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