Beware of “Ghost” Tax Preparers

042617_thinkstock_taxes
042617_thinkstock_taxes

The CrimsonRibbon/iStock/Thinkstock

 

The California Tax Education Council is warning taxpayers to be on the lookout for “ghost” tax preparers.

 

 

Margy Dunn with the Tax Education Council said preparers who do business without a legal designation face a five-thousand-dollar penalty. Preparers are also required by the IRS to provide a tax identification number on all federal tax returns. Taxpayers should be on the lookout for preparers that list “self prepared” on a return or use a business label instead of using their name. Also, a preparer sometimes claims they forgot to sign the federal tax return and will sign it after you pay them. Taxpayers can report any problems directly to the Tax Education Council.