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How to Prevent Tax Preparer Fraud

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By eHow Contributing Writer
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When a someone else completes your tax return, you're still ressponsible any fraudulent information it includes. Understanding what to look for when choosing a tax preparer can protect you from fraud.

Difficulty: Moderately Easy
Instructions
  1. Step 1

    Steer clear of tax preparers who charge certain percentage-based fees and promise big refunds. The Internal Revenue Service warns against working with tax preparers who say they can get a larger refund for you. The IRS also recommends that you shouldn't work with preparers who charge fees based on a percentage of your refund.

  2. Step 2

    Know that false expenses included by a tax preparer may result in penalties and criminal charges filed against you. Tax-preparer fraud often involves preparers claiming false deductions, credits that aren't allowed and inappropriate exemptions. You will be held responsible for the information on the return once you sign it.

  3. Step 3

    Consider the viability of the entity preparing your tax return. If there are questions about your return, you'll want some assurance that the tax preparer will still be around months or years later to answer those questions.

  4. Step 4

    Evaluate a tax preparer's credentials. Attorneys and certified public accountants can represent you before the IRS in audits, appeals and other tax-related situations. However, some tax preparers may only be able to assist you in audits pertaining to returns that they prepared.

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