As tax season ramps up, filers should be cautious about who they trust with their personal financial information \u2014 especially if a preparer promises an unusually large refund before reviewing any documents.<\/p>\n
At Philadelphia Legal Assistance, staff say they regularly hear from residents who discover too late that their tax preparer was unqualified or dishonest.\u00a0<\/p>\n
“Rampant might not be too strong a word to describe the levels of just funny business that goes on,” Lazlo Beh of PLA’s Taxpayer Support Clinic<\/a>\u00a0said.<\/p>\n Beh said the tax system makes it easy for unscrupulous preparers to take advantage of people looking for quick help.<\/p>\n Many of those cases take months or even years to resolve, so a little extra vetting up front can save you a lot of headaches later. Here are some tips to selecting a good tax preparer and recognizing when one might be sketchy.<\/p>\n Common red flags when selecting a tax preparer<\/p>\n Consumer advocates say signs of a potentially fraudulent tax preparer include:<\/p>\n Promises of a large refund before they review your financial details. Legitimate preparers must first ask about your income, dependents and filing status.Refusing to answer questions or rushing you through the process without explaining your return.Not allowing you to review the full tax return before filing. Preparers are required to give clients a copy.Hidden or unclear pricing. In Philadelphia, city law requires tax preparers to disclose their fees upfront.Not signing your return. Preparers are required to sign the tax return and include their Preparer Identification Number (PTIN).<\/p>\n “They say they’re doing your tax return, but then if you actually look at the tax return, that person’s name appears nowhere on it,” Beh said. “Those are called ‘ghost preparers.'”<\/p>\n Free filing options available<\/p>\n Many taxpayers may not need to pay for tax preparation at all. Several free services are available based on income or age:<\/p>\n IRS Free File<\/a>: Most taxpayers qualify to use the online program. It’s available to filers with an adjusted gross income of $89,000 or less.VITA (Volunteer Income Tax Assistance)<\/a>: IRS-trained volunteers offer free in\u2011person or virtual tax help for people who make $69,000 or less; or have disabilities.\u00a0MyFreeTaxes.com<\/a>: A free online preparation tool provided by United Way.AARP Foundation Tax\u2011Aide<\/a>: Free assistance available to older adults both online and in person.<\/p>\n Looking for help with a consumer issue?\u00a0Click here to submit your complaint to In Your Corner<\/a>.<\/p>\n