Tax Experts Warn of 'Ghost Preparer' Scams as Filing Deadline Nears

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Tax Experts Warn of 'Ghost Preparer' Scams as Filing Deadline Nears

PR Newswire

As the April 15 deadline approaches, CTEC warns against unverified tax preparers

SACRAMENTO, Calif., April 10, 2026 /PRNewswire/ -- Consumer protection experts are warning taxpayers about a growing threat: so-called "ghost preparers," individuals who prepare tax returns for a fee but refuse to sign them.

These preparers often promise unusually large refunds and low upfront costs. However, once the return is filed and payment is collected, they disappear, leaving taxpayers responsible for any errors, penalties, or audits.

"Ghost preparers intentionally avoid signing returns to escape accountability," said Fernando Angell, chair of the California Tax Education Council (CTEC). "It's not just unethical, it's illegal. And it puts taxpayers directly at risk."

Tax professionals say these schemes are spreading through word-of-mouth, social media, and informal networks. Common tactics include filing returns marked as "self-prepared," omitting required preparer information, or providing clients with one version of a return while submitting a different one to tax authorities.

"They're difficult to track because they deliberately leave no paper trail," said Lester Crawford, a member of CTEC's board. "Many taxpayers don't realize something is wrong until it's too late."

Red flags to watch for include:

  • A preparer who refuses to sign your return
  • Requests for cash payments without documentation
  • Promises of unusually large refunds
  • Directing your refund into a third-party account

Tax experts stress that anyone paid to prepare a return must include their identifying information. Legitimate preparers include certified public accountants (CPAs), attorneys, IRS enrolled agents, and credentialed professionals in states with oversight programs like California.

CTEC, which oversees roughly 40,000 registered tax preparers, urges taxpayers to verify credentials before sharing sensitive financial information. For more tips, visit CTEC.org.

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SOURCE California Tax Education Council (CTEC)