Tax season is fast approaching, and it is important for taxpayers to be on the watch for unqualified tax preparers.
New Mexico Legal Aid, a nonprofit, is sounding the alarm, urging New Mexicans to guard against predatory tax preparers with the help of a series of videos it is releasing through the month on its website. The mission is to alert the public to potential scams by knowing what questions to ask and what warning signs to be on the lookout for.
“By federal law, preparers are required not only to sign a return but to put something known as a PTIN, a Preparer Tax Identification Number on that return,” Grace Allison, a staff attorney with New Mexico Legal Aid, told KRQE.
One key is to ensure that your preparer is certified, because Allison told the station that there is no oversight on the state, local or even federal level for tax preparers, and she said free tax preparation can prove to be a safe alternative.
For anyone needing assistance in finding a certified tax preparer, the IRS offers a directory of preparers who are certified.
Allison also said it is important for a person to make sure the numbers on the taxpayer’s account are theirs and not the preparer’s number. She also told the news outlet that fees should be based on the difficulty of the return, and if someone wants to charge a percentage or require you to take out a loan or buy a big-ticket item, the taxpayer should leave immediately.