Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
Disruptions to the tax season over the past two years due to the COVID-19 pandemic have led to continued confusion about an already intimidating tax-filing process. For many, this includes major life changes, business changes, or simply a lack of knowledge about the ever-changing tax laws. That makes finding a trustworthy tax preparer before the April 18, 2022 deadline is a good idea.
BBB offers tips for finding someone you can trust with your finances and sensitive personal information:
- Review the tax preparer’s credentials. EAs, CPAs, and tax attorneys are all qualified to represent their clients to the IRS on all matters. Other preparers can help you with forms and basic matters, but cannot represent you in case of an audit. Don’t be afraid to ask about these or other qualifications before you hire someone.
- Be wary of spectacular promises. If a tax preparer promises you larger refunds than the competition, this is a red flag. Many such tax preparers base their fees on the amount of your return and may likely use shady tax preparation tactics. In addition, it’s wise to avoid tax preparers who offer “refund anticipation loans” as you’ll probably lose a large percentage of your return to commission fees.
- Get referrals from friends and family. One of the best ways to find a trustworthy tax preparer is to ask your loved ones for recommendations. Once you have a few options, check BBB.org, paying careful attention to other consumers’ reviews or complaint details. This will give you a clear view of what you can expect.
- Think about availability. If the IRS finds errors in your tax forms or decides to perform an audit, will your tax preparer be available to help you with the details? Find out whether you can contact the tax preparer all year long or only during tax season.
- Ask about fees ahead of time. Before you agree to any services, read contracts carefully and understand how much the tax preparer charges for their services. Ask about extra fees for e-filing state, federal, and local returns, as well as fees for any unexpected complications.
- If things don’t add up, find someone else. If a tax preparer can’t verify their credentials, has a record of bad reviews from previous clients, or their business practices don’t seem convincing, don’t do business with them. Keep in mind that if you hire them, this individual will handle your sensitive personal information – information you need to keep safe from corrupt or fraudulent tax preparers.
Looking for a trusted Tax Preparer? Search online at BBB.org. Have additional questions? Reach out to your BBB at 216.413.5232 or [email protected]. Have a scam to report? Report it to BBB.org/ScamTracker.
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