Beware of Tax Refund Scams in 2026: How to Verify a Tax Preparer and Protect Your Refund
Tax season is when millions of Californians file their returns—but it’s also when tax refund scams, IRS fraud schemes, and unregistered tax preparers become more active.
The California Tax Education Council (CTEC) is warning taxpayers about common scams that can lead to lost refunds, identity theft, or IRS penalties.
Understanding how these scams work—and knowing how to verify a tax preparer in California—can help ensure your refund stays where it belongs.
Why Tax Scams Increase During Tax Season in California
During tax season, scammers often pose as tax preparers or advertise services promising large or guaranteed tax refunds. These schemes are designed to lure taxpayers who want to maximize their refund quickly.
However, legitimate professionals know that no tax preparer can guarantee a refund before reviewing your financial information.
Advertisements promising guaranteed refunds are often linked to tax refund fraud or illegal tax preparation services.
California taxpayers should watch for these red flags:
- The preparer refuses to sign your tax return
- They promise unusually large refunds
- They charge fees based on refund size
- They ask to deposit your refund into their account
These warning signs often indicate tax refund scams or unregistered preparers operating illegally.
Watch for “Ghost” Tax Preparers
One of the most common scams reported each year involves ghost tax preparers.
A ghost preparer may:
- Prepare your tax return
- Charge a fee
- Refuse to sign the return
- Disappear after filing
Some ghost preparers also inflate deductions or claim false credits to increase refunds. When the IRS identifies errors, the taxpayer may be responsible for penalties or repayment.
3 Ways California Taxpayers Can Protect Their Refund
1. Your Refund Should Always Go to You
Your tax refund should be deposited directly into your bank account, not a preparer’s account.
2. Avoid Fees Based on Refund Size
Legitimate tax preparers charge based on the complexity of your return, not a percentage of your refund.
3. Be Skeptical of Guaranteed Refunds
No reputable tax preparer can guarantee a refund before reviewing your tax information.
Who Can Legally Prepare Taxes in California?
California has specific requirements for anyone who prepares tax returns for a fee.
Tax preparers must be one of the following:
- Attorney
- Certified Public Accountant (CPA)
- CTEC-registered tax preparer (CRTP)
- Enrolled Agent (EA)
CTEC oversees approximately 40,000 tax preparers in California, helping ensure they meet education and compliance requirements.
Working with a qualified professional helps reduce the risk of tax filing errors and refund fraud.
Click here to verify or find a CTEC-registered tax preparer.
