Watch Out for Red Flags: IRS Warns Against Unethical Tax Preparers

Thinking about your taxes? Ready to hire a tax professional?
The Internal Revenue Service has issued a reminder emphasizing the importance of selecting the right tax professional to help avoid the pitfalls of tax-related identity theft and financial fraud. While most tax preparers offer trustworthy services, the IRS warns that some may do things that can lead to serious consequences for taxpayers.

TRUST WHO YOU HIRE

As you prepare for the upcoming filing season, the IRS encourages you to be "diligent" in researching and vetting tax professionals. "Taxpayers need to be aware of who they are hiring, as they are ultimately responsible for the accuracy of their tax returns, even if they enlist the help of a preparer," says an IRS spokesperson.
Need help? The IRS provides a variety of resources to help you make the right decision.

READ MORE: WHY DO WE CONTINUE TO CHANGE CLOCKS IN WA?

A HELPFUL LINK FOR YOU

One helpful tool is the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which helps you find credible professionals to prepare your taxes. Additionally, the IRS offers resources on its website to help you select a tax professional;

Asking for Credentials: Ensure the tax preparer holds valid qualifications, such as being an enrolled agent, CPA, or attorney.
Checking Reviews and Referrals: Look for testimonials or seek recommendations from trusted friends and family.
Understanding Fees: Be clear on how the preparer charges for their services-whether it’s a flat fee, hourly rate, or a percentage of your refund.

WATCH THOSE BIG PROMISES

The dedicated page on IRS.gov also offers guidance on red flags to watch for that may indicate unethical practices, such as a preparer who promises big refunds or refuses to sign the tax return. "The integrity of the tax system depends on the trust that taxpayers have in their preparers," the IRS official noted. "By taking the time to choose a reputable professional, taxpayers can protect themselves from potential scams and the associated financial harm."