Compliance
Avoiding Scams & Picking the Right Preparer Under OBBB’s Changed Rules
With shifts in tax law under the One, Big, Beautiful Bill, unscrupulous tax preparers may misuse new credits—here’s your guide to spotting fraud, choosing wisely, and staying compliant.
By NomadicTax Research Team • 5-8 min read • May 10, 2026
## What’s Changed Under OBBB That Opens Door to Misleading Practices
The *One, Big, Beautiful Bill* introduced changes to deductions, credits, and eligibility rules. IRS warns that some tax preparers may promise inflated refunds or misrepresent benefits. ([irs.gov](https://www.irs.gov/newsroom/irs-reminds-taxpayers-watch-out-for-preparers-promising-quick-cash-fast-refunds-under-new-one-big-beautiful-bill-tax-changes?utm_source=openai))
Common red flags include:
- Claims that “everyone qualifies” for specific credits—when rules are eligibility-based.
- Fees based on taking a percentage of refund amounts or splitting refunds.
- Preparers not signing returns or omitting their Preparer Tax Identification Number (PTIN).
- Direct- depositing refunds into the preparer’s own account.
## How to Vet & Choose a Trustworthy Preparer
- **Credentials matter**: Look for licensed CPAs, attorneys, or enrolled agents; check their status through state boards or the IRS directory. ([irs.gov](https://www.irs.gov/newsroom/irs-reminds-taxpayers-watch-out-for-preparers-promising-quick-cash-fast-refunds-under-new-one-big-beautiful-bill-tax-changes?utm_source=openai))
- **Understand fees**: Legitimate preparers usually charge fixed fees, hourly rates, or per form—not a cut of your refund.
- **Get documentation**: Make sure solid documentation backs up all credits or deductions. Invoices, receipts, or legal agreements for credits.
- **Review everything**: Before signing the return, go through every line. Make sure bank account info is yours, amounts make sense.
## What to Do If You Suspect a Scam
- Demand written explanation of how a credit or deduction was calculated.
- If preparer refuses to provide documentation or abuses routing of refund, stop and seek another.
- Report misconduct to IRS Office of Professional Responsibility.
## Examples of Risky & Safe Scenarios
| Scenario | Risk Elements | Steps to Protect Yourself |
|---|---|---|
| Preparer guarantees a refund of \$5,000 without seeing full documentation | Likely fraudulent or speculative | Ask for proof, perform your own calculations, seek second opinion |
| Preparer doesn’t want to show PTIN or refuses to sign return | Violating IRS rules and hiding responsibility | Insist on PTIN; prepare return yourself if needed |
| Preparer uses the OBBB tax law to explain higher refunds but you lack eligibility | Misuse of law changes to mislead | Read IRS guidance, ask preparer to cite rule references |
## Actionable Advice for This Filing Season
- Choose a preparer early—mid-season rush can mean less attention to detail.
- Keep full records of everything—even small receipts, bank statements, any 1099s or W-2s.
- Stay current with IRS official notices on OBBB rules.
- Use IRS resources to verify preparers, such as the Directory of Federal Tax Return Preparers with Credentials.
Being informed, cautious, and proactive helps protect your finances and avoid trouble—especially in times when the tax landscape is shifting fast.