PHOENIX — The tax filing deadline is just weeks away, but filing may not be the only concern for consumers, as several tell us they're still waiting on returns from years ago.
Customer service has been a big issue for the IRS.
In 2021, only 11% of callers got through. It rose slightly to 13% in 2022. In 2023, the IRS added 4,000 new customer service reps and answered 87% of calls made to the IRS.
Many of those calls are about refunds.
The IRS is warning about one thing that could hold up your refund or land you in hot water: cheating tax preparers.
Maybe you were lured in by the promise of a large refund. You may not realize that a large guarantee is made possible by fake or inflated business losses and itemized deductions.
Some phony tax preparers will create a business - like photography- and claim the business suffered losses. That loss offsets W2 income, so the overall income is reduced and leads to an increased refund.
Why would someone do this? When people get big refunds they tell their friends and family which increases business so the preparer can charge more.
Here are some ways to protect yourself:
- Make sure your tax preparer has a tax identification number. By law, anyone who is paid to prepare or assist in preparing your tax return must have a valid 2024 preparer tax identification number, or PTIN, according to the IRS.
- Don't file with a preparer who won't sign the return. If a preparer won't sign their work, they may be trying to "ghost" you. They may not want the IRS to know they worked on your return, or they plan to alter the numbers before filing it electronically.
- Never sign a blank or incomplete return. A preparer may tell you it's OK to sign a blank return to save you a trip back to their office. Don't! Check your return line-by-line before filing. Whether you hire a preparer or not, if there's a problem later, you will be the one who's on the hook.
- Request a signed copy. If the return is filed electronically, get a copy and ask for proof it was submitted to the IRS.
If you believe a tax preparer has falsified your return, report it to the IRS online.
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