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By John North,
Contributing Writer
12:51 PM Saturday, March 17, 2012
Tax season breeds scammers ready to steal your money. The Better Business Bureau offers advice on hiring a tax preparer and avoiding schemes.
Phishing emails circulate around tax time claiming refund issues or problems preventing taxes from being processed or threatening audits. In most cases, phony emails include hyperlinks directing you to bogus Web sites, where you’re asked to provide Social Security, bank account or credit card numbers. In some cases, these sites are designed to automatically install viruses and malware on your computer to steal personal information.
Unethical tax preparers may guarantee big refunds before completing returns, skim portions of your refund for themselves or overcharge for services. Some preparers offer instant refunds for fees, known as refund anticipation loans, which are usually accompanied with a high interest rate, ranging from about 50 to nearly 500 percent.
Before hiring a tax preparer, get recommendations from friends and family and check preparers out with the BBB. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.
You should discuss the cost of the service with tax preparers and ask for estimates. Fees should be based on the return’s complexity, not the refund or savings amount. Also, determine if the firm will be around to answer questions about your return in the future and can represent you in an audit and at what cost.
Make sure the preparer signs the tax return and get a copy and payment receipt for your records. Review your return carefully before signing and get clarification on entries you don’t understand.
The BBB advises you to ignore unsolicited phone calls or emails requesting personal information and never click on links or download documents from unfamiliar people or companies. Also, verify the legitimacy of requests with the IRS or business directly from a trusted number. If there are issues with your tax returns, the IRS typically contacts you by mail, not email or phone. If you get a questionable email from the IRS, forward it to phishing@irs.gov.
John North is president and CEO of the Better Business Bureau.