Tax season is coming, and many COVID-19-related tax laws are still very confusing. This will lead many to visit a tax preparer to help them navigate new circumstances. In a time of confusion, scammers are on high alert.
New tax laws can help create confusion that dishonest preparers can capitalize on, so taxpayers should always review their returns before signing. Be sure to ask questions on entries you do not understand. Also, make sure you get a copy of the return for your records. Be careful to never sign a blank tax form or one filled out in pencil and make sure whatever you sign is official and legitimate.
Be wary of any tax preparation service that promises larger refunds than their competition and avoid tax preparers that base their fee on a percentage of the refund. Also be wary of “refund anticipation loans,” which can take a hefty chunk of your refund in commission. Refunds are processed quickly these days, so it’s usually a better bet to just wait for the real thing rather than pay a premium to get it now. If a deal seems too good to be true, it probably is.
Use BBB’s tips to find a tax preparer you can trust:
• Get referrals. To find a tax preparer, start by asking friends and family for recommendations, then check BBB Business Reviews at BBB.org. Look beyond the letter grade; complaint details and Customer Reviews will tell you about others’ experiences.
• Make sure they are properly registered. A tax preparer must obtain a PTIN from the IRS. Never let…
