--- title: The Tax Preparer Who Won’t Sign Your Return description: Ghost tax preparers hide their identities and leave taxpayers exposed. Learn the warning signs and why GAO wants a coordinated IRS strategy. image: https://americanimpact.org/hubfs/image%20(3)-4.jpg --- [![American Impact - Trimmed Logo one PNG](https://americanimpact.org/hs-fs/hubfs/American%20Impact%20-%20Trimmed%20Logo%20one%20PNG.png?width=1249&height=574&name=American%20Impact%20-%20Trimmed%20Logo%20one%20PNG.png "American Impact - Trimmed Logo one PNG")](https://americanimpact.org/) - [Home](https://americanimpact.org) - [About](https://americanimpact.org/about-american-impact) - [About the Foundation](https://americanimpact.org/about-the-american-impact-0) - [FAQs](https://americanimpact.org/frequently-asked-questions) - Issues - [Legislation](https://americanimpact.org/legislation) - [Monetary Policy](https://americanimpact.org/monetary-policy) - [Investing](https://americanimpact.org/investing) - [Entitlement Programs](https://americanimpact.org/entitlement-programs) - [Government Taxation, Spending, and Debt](https://americanimpact.org/government-taxation-spending-and-debt) - [Financial Literacy in the United States](https://americanimpact.org/financial-literacy) - [Articles](https://americanimpact.org/blog) - [Donate](https://americanimpact.org/donate) - [Charitable Solicitation Registration Statement](https://americanimpact.org/charitable-solicitation-registration-statement) [Contact Us](https://americanimpact.org/contact) # The Tax Preparer Who Won’t Sign Your Return [American Impact](https://americanimpact.org/blog/author/american-impact) Nov 9, 2026, 8:00:00 AM ###### [Government Taxation, Spending, and Debt](https://americanimpact.org/blog/tag/government-taxation-spending-and-debt) *Paid tax preparers must identify themselves on federal returns. When someone refuses, taxpayers may face errors, stolen refunds, and tax bills without an accountable professional beside them.* ## **What to Know** - Every paid federal tax-return preparer must obtain and use a valid Preparer Tax Identification Number, or PTIN. - “Ghost preparers” omit required identifying information or use an invalid, inactive, fabricated, or borrowed PTIN. - Taxpayers generally remain responsible for the information submitted on returns bearing their signatures. - Warning signs include cash-only payments, refund-based fees, blank forms, and requests to redirect refunds. - GAO made three recommendations for improving IRS data, coordination, and performance measurement. More than half of individual taxpayers hired someone to prepare their federal returns in fiscal year **2025**. Most preparers provide legitimate services, but some conceal their identities by refusing to sign the returns they prepare or enter a valid identification number. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-24-49-0916-AM.png?width=403&height=288&name=undefined-Nov-07-2026-07-24-49-0916-AM.png)** *Ghost preparers accept payment for tax preparation while hiding their identities from taxpayers and federal authorities, via*[*U.S. Government Accountability Office*](https://www.gao.gov/blog/beware-ghost-preparers-they-can-haunt-your-tax-filings?utm_source=chatgpt.com)*.* A new[Government Accountability Office review](https://www.gao.gov/products/gao-27-108176?utm_source=chatgpt.com) found that the Internal Revenue Service uses referrals, data analysis, taxpayer education, penalties, and investigations to address these “ghost preparers.” Fragmented responsibilities and disconnected databases, however, prevent the agency from measuring the complete problem or determining whether its combined efforts are working. ## **What Makes a Preparer a “Ghost”?** Federal law requires anyone paid to prepare all or substantially all of a federal return to obtain a valid PTIN. Paid preparers must enter that number in the return’s paid-preparer section and sign the document. Ghost preparers violate those identification requirements. Some leave the paid-preparer section blank and present the return as self-prepared. Others enter a fabricated number, an inactive PTIN, or a number issued to someone else. A missing signature does not independently prove that a preparer committed fraud. GAO explains that risks vary. Some preparers may misunderstand the PTIN requirement or allow their registration to expire. Others intentionally hide their identities while claiming false deductions, manipulating income, stealing refunds, or misusing personal information. Concealment makes accountability more difficult. IRS records may identify only the taxpayer connected with a questionable return, even when someone else prepared and electronically submitted it. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-24-49-5624-AM.png?width=675&height=404&name=undefined-Nov-07-2026-07-24-49-5624-AM.png)** *Form 1040 includes designated fields for a paid preparer’s signature, PTIN, business information, and contact details, via*[*U.S. Government Accountability Office*](https://files.gao.gov/reports/GAO-27-108176/index.html?utm_source=chatgpt.com)*.* Knowing where that information belongs helps consumers recognize a problem before submitting a return. Responsibility for checking the rest of the document, however, still remains with the taxpayer. ## **Why Taxpayers Still Carry the Risk** Hiring a professional does not transfer responsibility for the return to that person. Taxpayers sign under penalty of perjury and generally remain responsible for the accuracy of their income, deductions, credits, and refund instructions. Mistakes can produce additional tax, interest, penalties, delayed refunds, or an audit. Identity theft and diverted refunds can create financial problems extending beyond a single filing season. GAO analyzed **44** publicly identified federal cases involving ghost preparers, including **21 criminal** and **23 civil** cases. Courts ordered more than **$20 million** in government restitution across **19** criminal cases and more than **$3 million** in disgorgement across **nine** civil cases. Those totals do not represent the nationwide size of the problem. GAO did not attempt to locate every case, and officials said hidden identities make fraudulent returns difficult to connect to individual preparers. Proven losses may therefore represent only part of the conduct involved. Recovery is also uncertain. Justice Department officials told GAO that many criminal defendants lack enough assets to repay victims fully. Consumers cannot assume that an enforcement action will restore a stolen refund or cover the cost of correcting a fraudulent return. Recognizing suspicious conduct before filing offers stronger protection than trying to recover money afterward. ## **Warning Signs Before You Sign** Several behaviors should prompt taxpayers to stop and ask questions: | **Warning sign** | **Why it matters** | **Safer response** | | --- | --- | --- | | Refusal to sign the return | A paid preparer avoids required identification | Confirm that the preparer will sign and enter a valid PTIN | | Insistence on cash | A transaction may be intentionally kept off the books | Request a dated receipt describing the service | | Fee based on refund size | Questionable credits could increase the preparer’s compensation | Agree to a transparent fee before preparation begins | | Refund sent to another account | Money could be diverted before reaching the taxpayer | Use an account controlled by the taxpayer | | Request to sign a blank return | Information could be added without the taxpayer’s approval | Review every completed page before signing | | Refusal to provide a copy | Missing records can complicate corrections or complaints | Retain the complete signed return and supporting documents | Consumers can search the[IRS Directory of Federal Tax Return Preparers](https://irs.treasury.gov/rpo/rpo.jsf) for professionals holding recognized credentials or participating in selected IRS programs. Directory absence does not automatically mean someone is prohibited from preparing returns because unenrolled preparers may legally operate with valid PTINs. Anyone considering a preparer should ask to see a current PTIN and understand which professional credentials the person holds. Credentials matter because attorneys, certified public accountants, and enrolled agents may have broader rights to represent taxpayers before the IRS than unenrolled preparers. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-24-50-0327-AM.png?width=707&height=370&name=undefined-Nov-07-2026-07-24-50-0327-AM.png)** *Ghost preparers may omit identifying information or use fabricated, expired, borrowed, or improperly obtained identification numbers, via*[*U.S. Government Accountability Office*](https://files.gao.gov/reports/GAO-27-108176/index.html?utm_source=chatgpt.com)*.* Consumers who recognize those signs after filing still have reporting options, but GAO found that the information collected across IRS offices does not yet create a complete enforcement picture. ## **Why IRS Cannot Measure the Full Problem** Six IRS offices participate in activities related to ghost preparers. Separate teams conduct research, review referrals, educate taxpayers, impose penalties, perform examinations, and pursue criminal investigations. Relevant information sits in multiple systems that do not provide one connected view. One database records some ghost-preparer cases but does not track what other offices ultimately do with referrals. Another system lacked a method for identifying certain preparer penalties until **2025**. Criminal-investigation data does not include a unique fraud code for ghost-preparer cases. As a result, IRS cannot determine how many ghost preparers it has identified, investigated, penalized, brought into compliance, or referred for further enforcement. Missing connections also make it harder to identify repeat conduct or compare the effectiveness of different interventions. GAO recommended that IRS review its existing information and improve data collection, sharing, and analysis. Additional recommendations call for incorporating ghost-preparer work into a coordinated paid-preparer strategy and establishing measurable objectives for enforcement and taxpayer education. IRS agreed with all three recommendations and described planned or ongoing actions. Each recommendation remained open when GAO published its report, meaning GAO had not yet verified full implementation. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-24-50-3843-AM.png?width=654&height=424&name=undefined-Nov-07-2026-07-24-50-3843-AM.png)** *Multiple IRS offices and federal entities share ghost-preparer responsibilities, creating a need for better information exchange and case coordination, via*[*U.S. Government Accountability Office*](https://files.gao.gov/reports/GAO-27-108176/index.html?utm_source=chatgpt.com)*.* Better internal coordination could improve enforcement under existing law. Broader professional regulation would require a separate policy decision. ## **What Policymakers Must Decide** IRS can improve data sharing, case tracking, performance measures, and public education without receiving new statutory authority. Congress must decide whether the agency should also gain authority to impose competency, education, or suitability standards on paid preparers who are not already regulated professionals. GAO has previously recommended granting IRS explicit authority to establish professional requirements for paid preparers. Courts limited an earlier IRS attempt to regulate unenrolled preparers without clearer congressional authorization. Expanded standards could reduce incompetent or fraudulent preparation. Additional requirements could also increase compliance costs or reduce the number of affordable preparers serving rural, immigrant, and lower-income communities. Reliable enforcement data would help policymakers compare those trade-offs. Officials cannot determine which protections work if IRS cannot connect an initial complaint with later examinations, penalties, investigations, or repeated conduct. ## **Wrap Up** A preparer’s refusal to sign is more than a paperwork irregularity. Missing identification removes a basic accountability marker and can leave taxpayers trying to explain returns that someone else prepared. Consumers should verify a preparer’s identity, review every completed form, retain a copy, and ensure any refund goes directly to them. Suspected misconduct can be reported using[IRS Form 14157](https://www.irs.gov/dmaf/form/f14157?utm_source=chatgpt.com). Taxpayers seeking an account correction after an unauthorized filing or alteration may also need Form 14157-A. GAO’s recommendations create a measurable oversight test: whether IRS can connect its data, identify repeat offenders, assess enforcement results, and warn consumers before another questionable return is filed. 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