As tax season approaches, many individuals and families are focused on filing accurately and receiving their refunds as quickly as possible. Unfortunately, this is also the time when tax-related scams become more common. One growing concern is the rise of “ghost” tax preparers.
A ghost tax preparer is someone who prepares tax returns for a fee but refuses to sign the return or include their identifying information. While they may promise unusually large refunds or fast results, these offers are often red flags and the consequences can fall on you.
Why Ghost Tax Preparers Are Risky
Even if someone else prepares your taxes, you are legally responsible for everything on your return. If errors, false information, or fraud are discovered later, the IRS will hold you accountable, not the person who prepared it. Ghost preparers often disappear when problems arise, leaving taxpayers to deal with penalties, back taxes, or delays.
Common warning signs include:
- Promises of refunds that seem too good to be true
- Fees based on a percentage of your refund
- Refusal to sign your tax return
- Requests to deposit refunds into accounts you don’t recognize
How to Protect Yourself
Taking a few extra steps can help keep your financial information, and your refund, safe:
- Choose a reputable tax professional. Make sure your preparer has a valid Preparer Tax Identification Number (PTIN).
- Review your return carefully. Never sign a return you don’t fully understand.
- Confirm your preparer signs the return. A legitimate tax preparer will always sign and provide you with a copy.
- Double-check direct deposit details. Ensure your bank account information is correct before filing.
Trust Your Instincts
If something feels off, it probably is. Don’t hesitate to ask questions or walk away if a tax preparer makes you uncomfortable. Reporting suspected tax fraud can help protect not only you, but others in your community as well.
Staying informed is one of the best ways to protect your finances during tax season. At Peoples Bank, we’re committed to helping you stay safe, secure, and confident in your financial decisions, today and all year long.
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