Protect Yourself from This Tax Scam NewsRadio 740 KTRH KTRH Local Houston and Texas News

Here’s how to avoid them.

Warning Signs of Ghost Tax Preparers

Ghost tax preparers are individuals or companies that promise unusually high refunds or guaranteed tax savings. They often use high-pressure sales tactics to convince you to use their services. Here are some warning signs to watch out for:

They promise unusually high refunds or guaranteed tax savings

They use high-pressure sales tactics

They ask for upfront payment or a large deposit

They claim to have a special connection with the IRS or have inside information

They promise to file your tax return for you, but you can’t access your return or see the work they’ve done

How to Avoid Ghost Tax Preparers

To avoid ghost tax preparers, follow these steps:

Research the tax preparer or company thoroughly

Check for any complaints or reviews online

Make sure the tax preparer or company is registered with the IRS

Be wary of any tax preparer or company that promises unusually high refunds or guaranteed tax savings

Don’t pay upfront or make a large deposit

What to Do If You’ve Been a Victim

If you’ve been a victim of a ghost tax preparer, here’s what you can do:

Contact the IRS immediately

File a complaint with the IRS

Report the incident to the Federal Trade Commission (FTC)

Keep a record of all correspondence and communication with the tax preparer or company

Consider hiring a reputable tax professional to review your tax return and ensure it’s accurate

Conclusion

Ghost tax preparers can be a significant threat to your financial security.

They’ll tell you they’ll do everything in their way to make you happy. But don’t be fooled. They’ll promise you the world and then they’ll take your money and run.

The Red Flags of a Scam

When dealing with a business or individual, it’s essential to be aware of the warning signs that may indicate a scam. The Better Business Bureau (BBB) has identified several red flags that can help you avoid falling victim to a scam. Unrealistic promises: Be wary of businesses or individuals who promise you the best service or the best deal without any conditions or limitations. Pressure tactics: Scammers often use high-pressure sales tactics to get you to make a decision quickly, without giving you time to think or research.

It can also make it harder to get a refund.

The Importance of a Tax Preparer’s Signature

When you hire a tax preparer to do your taxes, you’re essentially entrusting them with a significant amount of personal and financial information. As such, it’s crucial that they sign and date the tax return on your behalf.