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FS-2026-06, March 2026
With recent provisions under the One, Big, Beautiful Bill changing credits, deductions, and eligibility rules, some dishonest tax return preparers may try to exploit taxpayersby making false refund promises.
OBBB includes several changes that may affect individual returns this filing season. While trusted, professional tax return preparers can help taxpayers understand these updates, scammers may use the new law as bait to promise inflated or incorrect refunds.
The Internal Revenue Service reminds taxpayers to choose a tax return preparer with care. Even though most provide honest, quality service, some may try to scam clients by promising quick cash or fast refunds. Taxpayers should watch out for tax return preparers who:
- Promise a big payday. If it sounds too good to be true, it probably is. With new OBBB credit and deduction changes, scammers may mislead clients by inventing new benefits or falsely claiming eligibility.
- Charge a fee as a percentage of a taxpayer’s refund, or offer to split the refund with the taxpayer.
- Refuse to sign the tax return or include their Preparer Tax Identification Number (PTIN). All paid preparers are required by law to have and include a PTIN.
- Insist on cash payment without providing a receipt.
- Direct deposit a refund into their bank account rather than the client’s. The best practice for the taxpayer is to receive a refund in their bank account. There are legitimate reasons for a taxpayer to have their refund deposited in a practitioner’s account. There may be arrangements to pay for return preparation or other fees from a tax refund. The practitioner needs to explain all fees and deductions from a tax refund and/or any interest obligations. The client has to have full understanding of the amount of a tax refund due, agree to the fees, and how and when the refund will be paid.
- Encourage taxpayers to falsely claim new or expanded credits they do not qualify for to boost their refund. A legitimate preparer will ask for all relevant documents and receipts.
- Suggest that the taxpayer add income, such as Schedule C - Self-Employment Income or wages they know they did not earn. A legitimate preparer will ask about all income sources and ask for documentation. A tax return containing false income and/or withholding credits to increase the amount of the tax refund or tax credit can become a serious issue. This will create delays in a refund, further contact from the IRS, and penalties.
- Claim they know loopholes or special refund tricks. No paid preparer has special access, priority, or shortcuts to new OBBB provisions. Preparers should rely on accurate documentation, not shortcuts or promises.
Tips for selecting a tax return preparer
Here are a few tips to consider when choosing a tax return preparer:
- Look for a preparer who's available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.
- Do your research. Check the Better Business Bureau website for information about the preparer. Look for disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy's website, and for attorneys, check with the State Bar Association. For enrolled agents, go to Verify the Status of an Enrolled Agent or check the IRS Directory of Federal Tax Return Preparers.
- Ask about service fees and payments. Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax return preparers who claim they can get larger refunds for you than their competitors.
- Provide records and receipts. Good preparers ask to see these documents. They will also ask questions to determine the client's total income, deductions, tax credits, and other items. Do not hire a preparer who e-files a tax return using a pay stub instead of a Form W-2. This is against IRS e-file rules.
- Review the tax return before signing it. Be sure to ask questions if something is not clear or appears inaccurate. Review the routing and bank account numbers on the completed return and make sure they’re accurate. Any refund should generally be paid directly to the taxpayer, not deposited into the preparer's bank account. However, there may be a legitimate reason for a taxpayer to have their refund deposited in a practitioner’s account, such as an arrangement to pay for return preparation or other fees from a tax refund. In that case, the practitioner needs to explain all fees and deductions from a tax refund and/or any interest obligations. The client needs to have full understanding of the amount of a tax refund due, agree to the fees, and how and when the refund will be paid.
- Do not share access to IRS Online Account or access to a credentialing service such as ID.me. These accounts should only be accessed by the taxpayer.
When choosing a tax professional, the IRS urges taxpayers to visit IRS.gov. Choosing a Tax Professional has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.
Taxpayers can also visit One, Big, Beautiful Bill Provisions on IRS.gov for trusted information and to avoid misinformation or scams tied to new tax law changes.