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With $6.2 billion already sent out to early filers across America, and thousands of taxpayers still getting things in order to do their 2024 taxes, the IRS wants to make sure we’re all choosing the right person to prepare our tax returns.
In a press release issued on Feb. 3, the Internal Revenue Service reminded Americans how essential it is to carefully select a tax professional to handle their return and sensitive personal and financial information. It also provided resources to help people make an informed decision and red flags to look out for.
For more on taxes, don’t miss our 2025 tax cheat sheet with essential tips you should know.
The ‘easy’ route: Prepare your own taxes online for free
In addition to providing a free way to file your taxes, IRS reminds taxpayers that some eligible individuals can also get free tax help through Volunteer Income Tax Assistance or Tax Counseling for the Elderly. Generally, VITA services are reserved for people who earn $67,000 or less per year, people with disabilities and limited English-speaking individuals who need help doing their taxes.
The IRS-managed VITA and TCE services are operated by IRS partners and consist of volunteers who must pass tax law training that meets or exceeds IRS standards.
Eligible taxpayers are encouraged to use the VITA Locator Tool online or call 800-906-9887.
Watch out for these red flags
There are some clear signs when something is amiss. Here are two to be on the lookout for.
Ghost preparers
This type of tax preparer will complete your tax return but will not sign it so they don’t leave a footprint. For e-filing, they will refuse to digitally sign the return as the paid preparer. This could be a sign of potential fraud.
The IRS also says that ghost preparers may:
- Require payment in cash only and not provide a receipt.
- Invent income to erroneously qualify their clients for tax credits or claim fake deductions to get a higher refund.
- Direct refunds into their bank account rather than the taxpayer’s account.
Lack of a valid PTIN
Every paid tax preparer must have a valid preparer tax identification number and include it when signing any tax return they prepare for someone. This is why you should source your preparer by vetted means, like the IRS’ own directory.
A couple of tips that for choosing your tax preparer
The IRS offers several tips that any taxpayer should look out for. Here are some highlights:
- Discuss service fees up-front. Not doing this could result in hidden fees that you weren’t expecting. The IRS suggests avoiding preparers who base their fees on the percentage of the refund.
- Even if you don’t feel like a tax expert, review the prepared tax return carefully and to the best of your ability. Don’t hesitate to ask questions if something doesn’t look right. Always check that the banking information for the refund is your and not that of the preparer.
- The preparer that you choose should ideally be available year-round. Tax questions may come up after the filing season ends.
- Understand your preparers’ credentials and ask about them if you need clarification.
Report preparers that aren’t honest or commit misconduct
Any sort of misconduct performed by your tax preparer should be reported. If they’ve done it to you, there’s no reason to believe it was their first time or that they won’t target others going forward. The IRS offers an easy way to do this and some pointers for you to figure out whether it’s time to file a complaint.
For more, don’t miss our 2025 Tax hub for all things tax related.
