When you hire a tax preparer, you’re trusting someone with your personal and financial information. The IRS has clear rules that paid preparers must follow—and understanding them can help you avoid costly mistakes, penalties, or even fraud.
Here’s what every taxpayer should know:
1. They Must Sign Your Return
This is one of the most important—and easiest—rules to verify.
Paid tax preparers are required to:
- Sign your tax return
- Include their Preparer Tax Identification Number (PTIN)
If a preparer refuses to sign your return, they are operating outside IRS rules. These individuals are often referred to as “ghost preparers” and can leave you fully responsible for errors or fraudulent claims.
Bottom line: If they don’t sign, don’t file.
2. They Must Provide You a Copy of Your Return
You are legally entitled to receive a complete copy of your filed tax return.
This allows you to:
- Review what was submitted on your behalf
- Keep accurate records
- Catch errors before they become problems
If a preparer refuses to provide a copy—or delays giving it to you—that’s a major red flag.
3. They Must Exercise Due Diligence
Tax preparers are required to take reasonable steps to ensure your return is accurate.
This includes:
- Asking detailed questions about your income and expenses
- Requesting supporting documentation
- Verifying eligibility for credits and deductions
They cannot simply “plug in numbers” or take your word without review—especially for credits like the Earned Income Tax Credit (EITC), which have strict requirements.
4. They Cannot Base Fees on Your Refund
It is illegal for tax preparers to charge fees based on the size of your refund.
Why this matters:
- It creates an incentive to inflate deductions or credit
- It can lead to fraudulent filings
- You—not the preparer—are ultimately responsible
Instead, reputable preparers use transparent, upfront pricing based on the complexity of your return.
5. They Must Be Honest and Obtain Your Consent
Tax preparers are legally and ethically required to act with integrity.
They must not:
- Falsify income, deductions, or credits
- File a return without your knowledge or approval
- Alter your return after you’ve signed it
Before filing, you should always review your return and ask questions if something doesn’t look right.
California Adds Another Layer of Protection
California is one of the few states that regulates paid tax preparers who are not attorneys, CPAs or IRS enrolled agents.
Through CTEC:
- Preparers must register and meet specific requirements
- Consumers have a place to verify credentials
- Complaints can be filed against noncompliant preparers
This added oversight helps protect taxpayers from fraud and unqualified preparers.
Bottom Line
Understanding IRS rules gives you the power to make informed decisions.
The simplest rule to remember: If you pay someone to prepare your taxes, they must sign your return.
If they don’t, that’s your signal to walk away—and report them.
