Avoiding Tax Preparer Fraud
Tax preparer fraud generally occurs when tax return preparers use manipulative tactics to obtain false deductions, unallowable credits, or excessive exemptions on returns prepared for their clients, with or without clients’ knowledge.
At SCCU, we encourage our members to read and consider the following tips for easier filing.
Verify Account Numbers
Verify that the routing and account numbers are correct when opting to have a tax refund directly deposited into a bank account. At SCCU, our Routing Number is 263177903 and is accessible on members’ monthly statements. A monthly statement should also include a 13-digit electronic checking number, the number that is used when opting to have funds deposited into a checking account.
Our Member Service Center is available to provide assistance and support to our members as needed. Please note that failure to use correct account numbers may delay or deny potential returns.
Choose the Right Tax Preparer
It is important to choose a tax preparer with care if external assistance is needed to prepare a tax return. The taxpayer is ultimately responsible for all information reported on a tax return, which is why it is very important to choose someone who can be trusted with such personal information. The IRS recommends following these tips when choosing a tax return preparer:
Be careful with tax preparers who claim they can obtain larger refunds than other preparers.
Avoid preparers who base their fee on a percentage of the expected refund amount.
Consult a reputable tax professional who is willing to sign the return and provide a copy for personal records.
Consider the availability and willingness of the preparer to answer questions that may come up months or even years after a return has been filed.
Perform a thorough review of the return prior to signing and ask questions on entries that may appear confusing.
Never sign a blank tax form as the taxpayer is always responsible for the Verify the preparer’s credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in matters concerning audits, collection, and appeals.
Check for the preparer’s affiliation with professional organizations to see if they provide members with educational resources and a code of ethics to follow.
For more information on how to detect tax fraud activity, please visit the official IRS website at IRS.gov