Arizona revenue agency: Here’s how to avoid fraudulent tax preparers

The Arizona Department of Revenue is encouraging taxpayers to ask these questions to avoid fraudulent preparers this tax season.

BY JESSICA SWARNER

Feb 20, 2019, 4:18 AM

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(Photo by Chris Hondros/Getty Images)

PHOENIX — The Arizona Department of Revenue is warning taxpayers to be wary of fraudulent preparers this tax season.

“The majority of tax preparers are professional and qualified,” Ed Greenberg, ADOR communications director, told KTAR News 92.3 FM last week.

“But there have been cases, unfortunately, where some have attempted to submit fraudulent returns or promise larger tax refunds by making unsubstantiated changes to the tax returns.”

About 60 percent of people filing taxes nationwide use preparation services, according to an ADOR press release.

News: Arizona Department of Revenue alerts taxpayers to be on lookout for shady tax preparers: https://t.co/voir9W2PmN #ADORNewsRelease pic.twitter.com/SSyNZoJuBc

— AZ Dept. of Revenue (@AZDORmedia) February 14, 2019

Greenberg said it’s a good idea for anyone using these services to ask how long a tax preparer has been in business and what training and credentials they have.

He also encouraged taxpayers to ask if the preparer offers an “e-file” service, which he says is safer and more efficient than offline tax preparation.

Other questions from the release include:

Does the preparer belong to any professional organizations?
Is the preparer available year-round?
Will the preparer explain how the return was prepared in the event of an audit?
Did the preparer explain charges for services in advance?
Does the preparer provide copies of complete returns to clients?

“Those are some of the questions we recommend that people may want to ask if they’re hiring a tax preparer for the first time and to try and assist them in gauging if that tax preparer is qualified for their situation,” Greenberg said.

He said ADOR’s criminal investigation unit put a halt to $1.8 million coming from about 2,000 fraudulent Arizona returns that were submitted by preparers last year.

Two people who allegedly filed 16 false returns for Arizona residents were indicted last month, according to an Arizona Attorney General’s Office press release.

The affected taxpayers must still file an amended return and pay the additional taxes due, plus interest, according to the release.

“We want to work with our taxpayers to ensure they’re asking questions because … they are ultimately responsible for their tax return,” Greenberg said.

KTAR News 92.3 FM’s Peter Samore contributed to this report.