Why Compliance Matters More Than Ever
The One, Big, Beautiful Bill (OBBB) introduced sweeping tax changes—increasing credits, modifying deductions, and expanding eligibility. These changes have increased opportunities and risk: scammers and dishonest preparers may try to take advantage. Understand your rights and safeguard your return. (irs.gov)
Red Flags from Tax Preparers
Here are warning signs to watch out for:
- Promises of a very large refund without reviewing your actual documents.
- Charging fees as a percentage of refund or splitting refund with your preparer.
- Refusal to sign the return or include a valid PTIN (Preparer Tax Identification Number).
- Direct deposit of refunds into the preparer’s account instead of yours.
- Suggesting false claims of new credits or deductions you don’t qualify for.
These issues are emphasized in recent IRS guidance aimed at protecting taxpayers under the new OBBB era. (irs.gov)
Knowing Your Taxpayer Rights
Every U.S. taxpayer has certain rights when interacting with the IRS. These include:
- The right to competent and professional assistance from your preparer.
- The right to be fully informed about credits and deductions claimed.
- The right to challenge IRS positions and be heard.
- Protection from fraudulent claims and misrepresentations.
If you believe your preparer acted improperly, you can file a complaint with the IRS, and you have rights to refunds or corrections. (irs.gov)
Practical Steps to Choose a Trustworthy Preparer
- Confirm credentials: look for CPAs, attorneys, or Enrolled Agents with PTINs, check their standing with professional boards.
- Ask questions: How do OBBB changes apply to you? Do you qualify for ‘no tax on tips’ or expanded HSA eligibility?
- Get everything in writing: fees, estimate of refund, how they’ll file.
- Review the final return before signing and filing. Donations of receipts/data early help avoid mistakes.
Example Scenario
Maria is a gig economy worker. Under OBBB, she qualifies for deductions on qualified tips and new fringe benefits. Her preparer promises an $8,000 refund without seeing her tip records. Red flag. Maria asks for documentation and refuses to use a preparer who demands part of her refund. She ensures accuracy and claims only what she’s eligible for, avoiding possible penalties.
Conclusion
The OBBB brings big opportunities—but also opens doors for abuse. By staying informed, choosing preparers carefully, and knowing your rights, you can claim benefits securely and compliantly.