Tax preparer scams target early filers

PROVIDENCE, R.I. (WPRI) -- If you are thinking of hiring a tax preparer to file your returns, beware! Though the majority are trustworthy, there are a few bad ones out there that could ruin you financially.

January 30th marks the beginning of the 2013 filing season, one week late because of the tax law changes made by congress. With the new laws, many residents are considering hiring a tax preparer to sort through your paperwork and file your return.

Before you start make sure to know your facts:

• Reputation is important. Ask around and get referrals from friends and family on who they use and check the Better Business Bureau Reports.
• Don’t fall for the promise of big refunds.  Be wary of any tax preparation service that promises larger refunds than the competition.
• Steer clear of tax preparers who base their fee on a percentage of the refund.
• Look for credentials: Ideally your tax preparer should either be a certified public accountant, tax attorney, enrolled agent, or certified E-file provider.

Don’t forget the IRS say taxpayers are legally responsible for what’s on their return even if it’s prepared by someone else.

Many residents can file for free if your income is less than $57,000, free file offers free federal tax preparation and e-filing that is available through IRS.gov