IRS Tax Filing Warning: Beware of Fraud Tax Return Preparers

An IRS warning is currently issued by the agency, advising taxpayers to be wary of IRS tax fraud, wherein scammers are fronting as credible tax return preparers.

The Internal Revenue Service is currently warning taxpayers to look for the common warning signs on fraudulent tax preparers, such as charging a fee based on the size of the refund, as reported by Alabama Media Group.

Other IRS tax frauds include tax preparers refusing to sign the return. They may also be asking people to sign a blank return.

IRS Commissioner Danny Werfel said in a press release that the agency continues to see situations of taxpayers falling victim to "unscrupulous" tax preparers and being left on their own.

Werfel encourages taxpayers to find the right tax professional for their needs and explore the tools and resources available to them.

IRS Tax Fraud

MARCA News noted that taxpayers can choose their tax preparers on the IRS's directory, including their credentials and select qualifications.

A taxpayer must also ensure that their tax preparer is a professional with a Preparer Taxpayer Identification Number or PTIN. The tax preparer is also required to include such information in your tax return signing.

In addition, taxpayers should review their IRS tax returns and have a copy of the document to verify and review the work being done for them.

The IRS added that taxpayers should choose their tax preparer as they provide sensitive personal and financial details.

Tax preparers unwilling to sign the return may be looking to make a profit, or they may also be promising a big refund.

Some fraudulent tax preparers may try to ask for a cash payment without providing a receipt, invent false income to get clients to get more tax credits, or claim fake deductions to boost your refund.

Fraudulent tax preparers can also direct refunds into their bank account, not the taxpayer's account, as detailed by Cleveland.com.

The IRS provides a form to taxpayers that they can use to report misconduct from the end of their tax preparers.

IRS Tax Filing

If you are a taxpayer residing in California, you might qualify for an extension due to areas hit by severe weather in January.

The IRS tax filing deadline for most Americans is April 18, 2023, while the IRS offers California residents in designated areas more time to file.

IRS announced that California storm victims can file their tax returns until May 15, 2023, according to CBS News.

Their filings can be individual or business tax returns or tax payments.

Areas included are Los Angeles, San Diego, Orange, Riverside, Sacramento, and San Francisco counties.

For those aiming to file an extension, taxpayers must file Form 4868. But the extension would not mean that there would be an extension for payment of your taxes.

Tax programs such as TurboTax can submit an extension request for taxpayers.

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Written by: Mary Webber

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