With tax season in full swing, the Internal Revenue Service cautioned taxpayers in a new advisory “to avoid unscrupulous tax return preparers.” The agency also provided tips for finding a legitimate tax professional.

Telltale signs you may be communicating with an incompetent or unsavory preparer include fees based on the size of a customer’s refund, the IRS said. Taxpayers should also avoid tax preparers who refuse to sign the tax return or ask customers to sign a blank return, the agency said.

“Most tax professionals offer excellent advice and can really help people navigate complex tax issues. But we continue to see instances where taxpayers are 'ghosted' by unscrupulous tax preparers with bad advice who quickly disappear,” IRS Commissioner Danny Werfel said in a prepared statement.

In one example of a suspect preparer, on March 24, a federal grand jury in North Carolina returned a 20-count criminal indictment against “ghost preparer” Tijan Mboob, of Charlotte for alleged tax fraud. The grand jury charged Mboob with allegedly aiding and assisting in the preparation and filing of false tax returns over a five-year span.

The indictment also alleges that Mboob falsified documents, fraudulently reduced clients' tax liabilities and inflated refunds totaling more than $4.7 million.

According to the IRS, shady tax preparers may:

• Ask for a cash-only payment without providing a receipt.
• Invent false income to try to get their clients more tax credits.
• Claim fake deductions to boost the size of the refund.
• Direct refunds into their bank account, not the taxpayer's account. 

No matter who prepares their taxes, “taxpayers are ultimately responsible for all the information on their income tax return, regardless of who prepares the return,” the IRS warned.

As a result, the agency urged taxpayers to “choose a tax preparer as carefully as they choose a doctor or attorney."

While there are obviously different types of tax preparers who offer various levels of credentials and qualifications, there are “constants” tax clients should look for when it comes to selecting a preparer, the IRS said.

In order to prepare federal tax returns, tax professionals are required to have an IRS Preparer Tax Identification Number (PTIN). The IRS maintains a directory (https://irs.treasury.gov/rpo/rpo.jsf) of tax preparers who have PTINs, that customers can use to verify their preparer’s Tax Identification number.

“We encourage taxpayers to check out the tools and resources available to them to ensure they find the right tax professional for their needs,” Werfel said.