With tax season quickly wrapping up, the Justice Department is urging the public to beware of fraudulent tax return preparers.
The IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid. Although the IRS says most tax preparers are honest, there are some out there who scam clients that are trying to get their taxes done at the last minute.
According to the Justice Department, here are some red flags for which you should watch out when talking to a potential tax preparer:
- Your refund should never be deposited directly into a preparer’s bank account.
- Never sign a blank return or a blank form, and don't sign a return or a form without reading it first.
- Don’t use a preparer who falsely labels your expenses.
- Don’t use a preparer who fabricates business expenses or deductions.
- Don’t use a preparer who claims bogus credits that you are not entitled to, such as Earned Income Tax Credit, the child care credit or the education credit.
The Justice Department warns that if your tax return is prepared incorrectly, you are the one who has to pay the penalty, not your tax preparer.
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