This weekend, as jack-o’-lanterns🎃flicker and tales of ghosts👻send shivers down our spines, there’s one kind of spirit you really don’t want haunting you—a ghost tax preparer. Forget cobwebs🕸️and creaky doors🚪: this financial phantom can leave you with a real-life nightmare from the IRS.
A new federal report links “ghost” tax preparers to $179 million in refund claims. Here’s what this scam looks like, what lawmakers are doing about it, and—most importantly—how you can protect yourself.
Every tax season, millions of Americans trust their personal and financial details to a preparer they found through a referral, a storefront sign, or even a social media ad. While most preparers are honest, growing evidence shows that too many are not—and taxpayers can end up paying the price.
The IRS calls these individuals “ghost” preparers. A new report from the Treasury Inspector General for Tax Administration (TIGTA) shows just how widespread the problem has become.
What Is a Ghost Preparer?
Anyone you pay to prepare your taxes is supposed to sign your return and include their official Preparer Tax Identification Number, or PTIN. If they refuse, that’s a major red flag🚩—a ghost preparer charges a fee but refuses to sign the return or include a PTIN.
For paper returns, a ghost preparer might print out your return and tell you to sign and mail it yourself, sometimes marking it as “self-prepared.” For e-filed returns, they prepare it but don’t sign as the paid preparer. Either way, the preparer leaves no trace—and you’re legally responsible for everything on the return.
The IRS has included ghost preparers on its annual “Dirty Dozen” list of tax scams for years, most recently in March 2026.
The New Numbers: What the Government Found
On October 21, 2026, the Treasury Inspector General for Tax Administration (TIGTA), which oversees the IRS, released a report analyzing how the IRS issues, renews, and monitors PTINs. By cross-referencing tax return data with preparer records, TIGTA identified several concerning trends related to ghost preparers and questionable refund claims. For tax year 2023, TIGTA identified 47 likely ghost preparers associated with 6,352 tax returns that claimed over $94 million in refunds. For tax year 2024, TIGTA identified 65 likely ghost preparers whose 6,444 returns requested more than $85 million in refunds. Combined, these two years accounted for approximately $179 million in refund requests linked to potentially noncompliant preparers.
A common scam: overstated withholding. Many of these flagged returns followed a now-classic scheme, where the preparer inflates the amount of tax supposedly paid in order to generate a bigger refund. In just two years, TIGTA found 2,044 preparers responsible for 78,530 returns that claimed more than $740 million in refunds—84% of whom lacked any professional credential. This shows how unqualified preparers can put both the IRS and taxpayers at risk.
Noncompliant PTINs. In the 2025 filing season, more than 38,000 preparers with out-of-compliance PTINs handled more than 2.2 million returns. Nearly 12,000 filed only refund returns, about 95,000 in total, seeking almost $600 million combined, with not one return showing tax owed.
Missed enforcement. TIGTA estimates the IRS could have assessed about $92 million in penalties against preparers who used noncompliant PTINs, but the IRS struggles to keep up. With so many returns and limited resources, enforcement is tough. Sometimes, it’s hard to tell the difference between honest mistakes and real fraud. TIGTA advised the IRS to use a stronger, data-driven strategy to monitor preparers—and the IRS agreed.
Why This Happens: The Regulatory Gap
Surprised by all this? Many people don’t realize that federal law doesn’t require tax preparers to be licensed. After a 2014 court ruling, the IRS lost its authority to enforce certain rules, ending mandatory testing and continuing education for paid preparers. Now, anyone can get a PTIN and start preparing returns—even with no training. Only CPAs, enrolled agents, and attorneys must meet rigorous standards. Some non-credentialed preparers do extra training voluntarily, but most aren’t required to. This legal loophole means unqualified preparers can operate more easily, putting taxpayers at greater risk for errors or outright fraud.
What Congress Is Doing: The TAS Act
On September 30, 2026, the U.S. Senate unanimously passed the Taxpayer Assistance and Service (TAS) Act—a bipartisan bill with over 60 reforms for the IRS and taxpayer protections. Several parts of the bill focus on ghost preparers. If it becomes law, the TAS Act would:
Make it a federal felony to knowingly leave a PTIN off a return, use a fake PTIN, or borrow another preparer’s number—with fines up to $50,000 for individuals and $100,000 for corporations, plus possible prison time.
Raise the civil penalty for not including a valid PTIN to $250 per return, up to $75,000.
Penalize preparers who change a return after you sign it—such as rerouting your refund.
Give the IRS clear authority to refuse, pause, or cancel a preparer’s PTIN.
Allow Treasury to require background checks and annual continuing education (up to 18 hours) for non-credentialed preparers.
The TAS Act isn’t law yet; it still needs House approval before becoming official.
Red Flags to Watch For
Watch for these warning signs from the IRS:
The preparer won’t sign the return or provide a PTIN.
Fees are based on a percentage of your refund.
The preparer promises a refund that seems too good to be true.
Cash-only payment with no receipt
Pressure to sign a blank or incomplete return
Bank account information on the return that isn’t yours
Deductions or credits you don’t recognize or don’t qualify for
How to Protect Yourself
Ask directly: Before you hire anyone, ask if their name and PTIN will appear on your return.
Check credentials: Look up your preparer in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications at IRS.gov. This lists attorneys, CPAs, enrolled agents, and certain others. If you don’t see your preparer’s name, follow up with more questions—it doesn’t always mean misconduct.
Review your return before you sign: Read everything, ask about anything you don’t understand, and check the bank info for direct deposit.
Keep a complete copy: Your preparer is required to give you one.
Pick a preparer who offers year-round support—someone who is available after tax season can stand behind their work if the IRS has questions.
If You Think You’ve Been “Ghosted”
If you suspect a preparer acted improperly, you can report them to the IRS using Form 14157 (Return Preparer Complaint). If their actions affected your return or refund, you’ll also need Form 14157-A (Tax Return Preparer Fraud or Misconduct Affidavit). The IRS also takes confidential tips at IRS.gov/SubmitATip. If you get an IRS notice about a return someone else prepared, contact a credentialed tax pro right away.
The Bottom Line
Your tax return has your signature—which means you’re legally responsible for everything on it. The preparer you choose should be willing to put their name on it, too. The takeaway: always ask for a preparer who signs the return and stands behind their work.
At Your Financial Maven®, I sign every return I prepare and offer advice all year—not just during tax season. If you have questions about your return or want someone to give it a second look before you file, contact me at yfmcpa.com. What’s your experience with tax preparers? Drop a comment or share your story below!
Further Reading
Looking for more details or official guidance? Check out these useful resources: https://www.irs.gov/node/158246
– IRS Dirty Dozen Tax Scams: https://www.irs.gov/newsroom/dirty-dozen-tax-scams-for-2026-irs-reminds-taxpayers-to-watch-out-for-dangerous-threats
– TIGTA Report on Return Preparers (2026): https://www.tigta.gov/sites/default/files/100/2027ier001fr.pdf
– IRS: How to Choose a Tax Return Preparer: https://www.irs.gov/newsroom/irs-take-care-when-choosing-a-tax-return-professional
– IRS: Report Tax Return Preparer Misconduct: https://www.irs.gov/help/report-fraud/tax-return-preparer-misconduct
