WASHINGTON, DC (WOWO) The Better Business Bureau is urging taxpayers to be cautious of “ghost” tax preparers as the April filing deadline nears.
Since 2006, the IRS has required anyone who is paid to prepare taxes to be certified with a Preparer Tax Identification Number, or PTIN. Ghost preparers are individuals who advertise tax preparation services without having a PTIN. They often promise large or fast refunds and may charge below-market rates, but they cannot legally sign tax returns.
Instead, these preparers ask clients to sign their own returns, making it appear self-filed. The BBB warns that if there are mistakes, omissions, or underpayments, the taxpayer is fully responsible. This situation can leave clients liable for penalties and interest, even when the error was caused by the ghost preparer.
The BBB advises using only certified tax preparers who sign returns and include their PTIN. Taxpayers should also ensure that refunds are deposited directly into their personal accounts rather than into a preparer’s account, another common red flag.
For more guidance on spotting ghost tax preparers and tips for safe filing, visit the BBB website.
