It's tax preparation time again. Don't be scammed by a shady tax preparer. Image: Images_of_Money/Flickr/CC BY
January has passed, and most of us have received our W2s and are thinking about getting our taxes done before the big crunch in April. But many find negotiating the maze of official forms to be too much, fearing they may miss deductions or other tings. Many will decide to turn to a tax professional. But make sure the person you hire is reputable and honest before handing over your vital financial information. More and more, scammers posing as tax preparers have been preying on unwary consumers.
Mo Money Taxes
Mo Money Taxes is a chain of tax preparation offices across the nation’s south. The business has received so many customer complaints that it has been given an F rating by the Better Business Bureau. The BBB has also issued a warning about the place, telling consumers to look elsewhere for tax preparation.
Many complaints
Many customers have complained that they have yet to receive refund checks that were due in January. The company has blamed the IRS for the late refunds. However, some of those consumers have checked with the IRS only to be told that their refunds have already been issued.
Albert Branch, a Mo Money Taxes customer in the St. Louis, Mo., area, complained:
“I was supposed to receive my tax refund on the 30th of last month. I called the IRS, and they said they deposited my tax return into their bank on Friday.”
Other customers allege that false tax returns have been filed in their names. Others, after giving out all their vital financial information, found their local office permanently closed. Many say the company will not answer their calls or inquiries.
According to the BBB, the Arkansas Attorney General sued Mo Money in 2010 for not legally disclosing its fees. Other offices, in cities like Norfolk, Va., and Memphis, Tenn., have been shut down by police over fraudulent practices.
Choosing a good tax pro
To avoid scam artists, it is up to you to be sure you are hiring a legitimate tax professional. The first step to take is to be sure your professional has a preparer tax identification number, or PTIN. The number assures consumers that the preparer has complied with new federal regulations that require all who file tax returns for others to be registered with the IRS.
Checking credentials is also a good idea. Anybody claiming to be a tax professional should be either a CPA, an enrolled agent (EA) or a tax attorney if your return is really complicated. All of these professional affiliations should leave a paper trail that is fairly easy to check.
[Faxless payday loans can help you over the hump while waiting for that tax refund.]
What to do if scammed
If you seem to be getting the runaround from your preparer or something doesn’t feel right, you can file a complaint with the IRS. The IRS website will also provide up-to-date status on your return. A refund is supposed to be issued within 21 days of filing, or within 10 if the return is filed online with direct deposit information.
Sources
Daily Finance
KMOV
Ripoff Report
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