Tax season is approaching, bringing a rise in fraudulent “ghost” tax preparers who promise big refunds, then disappear. The BBB warns these scammers thrive on confusion, often avoiding signing returns to dodge accountability.

Ghost preparers lure clients with unrealistic promises, fabricating deductions for large refunds. They have clients sign their own returns or submit electronically without signing, leaving taxpayers responsible for any errors found by the IRS.

To avoid ghost preparers, steer clear of unrealistic promises, never sign your own return, review before filing, control where refunds deposit, research credentials, report suspicious activity, and consider reputable tax software alternatives like TurboTax and H&R Block.

With new tax laws in effect, scammers are poised to exploit confusion. The IRS created new deductions for 2025-2028, including no tax on tips, overtime, senior deductions, and car loan interest. Approximately six million workers report tipped wages, while millions stand to benefit from new deductions.

Protect yourself this tax season by choosing preparers carefully, understanding your rights, and remembering that legitimate professionals sign their work. Research tax laws, be cautious of promises, and report any suspicious activity to authorities or the BBB to avoid falling victim to ghost preparer scams.

Read more at Yahoo Finance: IRS warns taxpayers of ‘ghost’ preparers who promise big refunds, file fraudulent returns and vanish without a trace