The New York
State Department of Taxation and Finance and the Division of Consumer
Protection today issued a consumer warning to the seven million
taxpayers who have yet to file income tax returns.
“In light of
the recent arrests of tax preparers across New York State, we’re urging
taxpayers to ask the right questions before trusting someone with their
private information,” said New York State Commissioner of Taxation and
Finance Jerry Boone. “Each year, we receive thousands of tax returns
based on stolen identities, some of which are submitted by unethical tax
preparers. If you choose to hire a tax preparer, follow these easy
steps to ensure that the preparer is honest and qualified.”
“The
Division of Consumer Protection strongly urges all New Yorkers to
practice due diligence when selecting a tax preparer,” said Acting NYS
Secretary of State Rossana Rosado. “Always get the terms and total
cost of the service in writing. Avoid any tax preparer who charges a
percentage of your tax refund as part of the fee. Most important, if you
suspect you’re being defrauded by a tax preparer, report that
individual to the Tax Department immediately.”
Before you hire a tax preparer
While
millions of New Yorkers prepare their taxes without the services of a
paid tax preparer, the Tax Department and Division of Consumer
Protection encourage taxpayers who are considering a paid preparer to
ask these four questions:
Are you registered with the IRS and New York State?
New York State registered preparers must meet continuing education
requirements and minimum qualifications. Attorneys, certified public
accountants, and IRS enrolled agents aren’t required to register but do
have other professional requirements. Ask to see the preparer’s
registration certificate or proof that he or she isn’t required to
register. (You can also verify that a tax preparer is registered online.)
How much will it cost?
Ask to see a list of fees. The fees should be directly related to the
services provided and not the refund amount. Also, by law, preparers
cannot charge to e-file in NYS.
How will I receive my refund?
A refund should never be deposited into a preparer's bank account. The
fastest and safest way to receive your refund is to have it directly
deposited into your bank account.
Will you sign the return?
A completed tax return must be signed by both the taxpayer and the
preparer. Preparers must also include their federal preparer tax
identification number (PTIN) or social security number, and either their
NYS registration number or exclusion code. You should never hire a
preparer who won’t sign your return, and never sign a return before it’s
fully prepared.
Taxpayers should also ensure that the preparer will: base the tax return on actual records and receipts; e-file the return; and be available after the tax return is filed in case questions arise.
Taxpayers can also contact the Better Business Bureau to see whether a tax preparer has a history of consumer complaints.
New York is
one of only four states to regulate the tax preparer industry. While
most tax preparers are honest and provide excellent service to their
clients, taxpayers must remain vigilant to protect themselves from
individuals who file fraudulent returns or misuse personal information.
New webpage and checklist for taxpayers
To help taxpayers screen potential tax preparers, the Tax Department published a new checklist available at its Tips for hiring a tax preparer webpage. Before hiring a tax preparer, use the checklist as a guideline when visiting or calling prospective preparers.
File a complaint
If you're
aware of a tax preparer who has engaged in illegal or improper conduct,
contact the NYS Tax Department’s Office of Professional Responsibility
at (518) 530-HELP (option #2) or file a tax preparer complaint online. The
Tax Department will review your complaint promptly and, where
appropriate, take corrective action, which may include sanctions.
Recent arrests
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