As April 15 Deadline Approaches, CTEC Warns Against Unverified Tax Preparers
/PRNewswire-HISPANIC PR WIRE/ — Consumer protection experts are warning taxpayers about a growing threat: so-called “ghost preparers,” people who prepare tax returns for a fee but refuse to sign them.
These preparers often promise unusually large refunds and low upfront costs. However, once the return is filed and payment is collected, they disappear, leaving taxpayers responsible for any errors, penalties or audits.
“Ghost preparers intentionally avoid signing returns to escape liability,” said Fernando Angell, president of the California Tax Education Council (CTEC). “It’s not just unethical, it’s illegal. And it puts taxpayers at direct risk.”
Tax professionals say these schemes are spreading through word of mouth, social media and informal networks. Common tactics include filing returns marked “self-prepared,” omitting required preparer information, or providing clients with one version of a return while filing a different one to tax authorities.
“They are difficult to trace because they deliberately leave no paper trail,” said Lester Crawford, a CTEC board member. “Many taxpayers don’t realize something is wrong until it’s too late.”
Red flags to watch out for include:
- A preparer who refuses to sign his return
- Requests for cash payments without documentation
- Unusually large refund promises
- Direct your refund to a third-party account
Tax experts emphasize that anyone paid to prepare a return must include their identifying information. Legitimate preparers include certified public accountants (CPAs), attorneys, IRS enrolled agents, and professionals accredited in states with oversight programs such as California.
CTEC, which oversees approximately 40,000 registered tax preparers, urges taxpayers to verify credentials before sharing sensitive financial information. For more tips, visit CTEC.org.
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FUENTE California Tax Education Council (CTEC)