Tax return preparer misconduct

If a preparer:

• Steals or embezzles all or part of a client’s federal tax refund
• Diverts a refund to an account that’s not the client’s
• Provides a copy of the return to the client with direct deposit information that’s not theirs
• Provides a copy of the return to the client that doesn’t match the return that was filed with the IRS
• Fails to explain that a cash advance, fast refund or instant refund was actually a refund anticipation loan with fees and interest, borrowed against an income tax refund

If a preparer:

• Claims false or fictitious expenses or deductions on a tax return
• Claims unrelated, non-existent, unknown or additional information on a tax return
• Changes a client's original tax documents or uses false or incorrect documents to complete return
• Claims false or fictitious income or federal withholding on a tax return
• Fails to include income on a tax return to generate a larger refund
• Claims an improper filing status on a tax return, which doesn’t accurately reflect the taxpayer's family situation

If a preparer:

• E-files using a last payroll stub or a leave and earnings statement, not the official Form W-2 from the employer. Return preparers are generally prohibited from filing a return before receiving Forms W-2, W-2G, and 1099-R.
• Uses non-commercial software to prepare returns that appear self-prepared by the taxpayer and doesn’t include their name, PTIN or firm name. Or if they use IRS Free File to prepare and file tax returns for clients.
• E-files without securing the taxpayer’s signature on Form 8879 (e-File Signature Authorization).

If a preparer:

• Doesn’t provide the client with a copy of the return he or she prepared, and refuses to provide a copy after a request
• Doesn’t not return some or all of the client's original records
• Doesn’t sign the federal tax returns that he or she prepared
• Claims to be an attorney, certified public accountant, enrolled agent, or registered tax return preparer, but does not actually have the credential or it’s no longer valid (e.g. expired, suspended or revoked).
• Agrees to file return but doesn’t
• Charges for services not performed
• Doesn’t remit payment for taxes due
• Files a return or submits other information for a client without their knowledge, authorization, or consent
• Fails to explain that a cash advance, fast refund or instant refund was actually a refund anticipation loan with fees and interest, borrowed against an income tax refund
• Engages in fee dispute or threatening behavior

If a preparer:

• Improperly used a PTIN belonging to another individual
• Doesn’t have or include a PTIN on returns prepared.

If a preparer:

• Doesn’t remit employment tax funds to the IRS on behalf of a client for Forms 940, 941, 943, 944, or 945 in full or on time
• Doesn’t prepare employment tax returns (Form 941, 940, 943, 944, 945) on behalf of a client in an accurate or timely manner

Paid tax return preparers must sign and include a valid Preparer Tax Identification Number (PTIN) on every tax return they prepare. A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a PTIN. These unlicensed or unethical tax return preparers should be avoided. When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed. Taxpayers should never sign a blank or incomplete tax return.

Ghost preparers often exploit taxpayers by promising large refunds. These preparers may:

• Exaggerate your eligibility for deductions
• Claim credits that you do not qualify for
• Disappear after filing, leaving you responsible for penalties, interest, or audits

We will send you a Letter 4733 or Letter 6623 if we believe your tax return was prepared by a ghost preparer. If you received a Letter 4733 or Letter 6623 and you paid a tax preparer to prepare your return, please report the preparer below.

If you are an individual taxpayer and your tax preparer altered tax data, misdirected a refund, or filed a Form 1040 series tax return without your knowledge or consent, you can request the IRS make a change to your tax account to reflect the correct information as you intended your tax return to be filed by completing and filing a Form 14157-A. This is a separate process for victim assistance beyond submitting a complaint about a tax preparer. You do not have to submit a Form 14157-A to submit a complaint about a tax preparer. 

To request an account change, you must be a Form 1040 series filer, business accounts are not eligible. 

Because we are changing your tax account, we require significant evidence to verify your submission. Please collect the following information prior to completing Form 14157-A:

• Signed copy of your individual tax return(s), as it was intended to be filed (if required to file).
• A copy of your tax return you received from your tax preparer.
• Detailed Tax Preparer Information - If the preparer did not sign the filed tax return, then you must provide: 
  • Evidence corroborating that the tax preparer held themselves out as being in the business of preparing returns. You will need to provide one or more items of evidence to establish this fact. Refer to the instruction on Form 14157-A for examples.  
  • Evidence corroborating that there was interaction with the tax preparer. The evidence must show the preparer’s name and the tax year in question with corresponding dates that indicate an exchange between the taxpayer and the preparer regarding the filing of a tax return. You will need to provide one or more items of evidence to establish this fact. Refer to the instruction on Form 14157-A for examples.
• If you are claiming you received no refund or received only a portion of your refund, additional information is required:
  • Official report from a Law Enforcement agency signed by police officer or equivalent (or otherwise demonstrably accepted by the agency) that contains:
    •  Tax year(s) involved
    • Return preparer's first and last name, address, and
    • A statement describing the preparer misconduct and theft of refund.

If you are submitting Form 14157-A in response to a letter or notice you received from the IRS, you will also need to attach a copy of the letter or notice you received.

If you want to file a Form 14157-A and request a change to your individual tax account, please click on the following option below: “I am an individual taxpayer and want to report tax preparer misconduct or fraud, or that my refund was stolen or misrouted AND I am requesting IRS make a change to my individual tax account.”