New York State Department of Taxation and Finance
518-457-7377
geoffrey.gloak@tax.ny.gov

April 08, 2013

Consumer Alert: Unscrupulous Tax Preparers Preying on Taxpayers With Limited English Skills

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New York State Taxpayer Rights Advocate Camille Siano Enders today warned taxpayers to beware of paid tax preparers who are stealing refunds. 

The scam appears to target non-English-speaking communities more than others. 

Here’s how the scam works: The taxpayer - unfamiliar with the tax forms or unable to read them - is led to believe his refund is $200, when his actual refund is $2,000.  The unscrupulous preparer pays the taxpayer the $200 on the spot. The preparer then arranges for the actual refund of $2,000 to be deposited into his bank account, stealing the $1,800 difference. 

“The language barrier can make taxpayers with limited English skills more vulnerable to this kind of scam,” said Ms. Siano Enders. “The overwhelming number of paid preparers provide honest, professional advice and service. But situations such as this one serve as reminders that taxpayers must remain vigilant.” 

When meeting with a tax preparer, individuals with limited English ability may wish to bring a friend or relative to help in understanding the tax return. And taxpayers are warned never to sign a blank or incomplete return. 

In addition, taxpayers should keep a copy of the return and make sure it’s signed by the tax preparer. Instead of a paper check, consider having your refund deposited directly into your bank account, or take advantage of the Tax Department’s newest payment option - the refund debit card. 

Know your rights
Taxpayers who use the services of paid tax preparers are entitled to protection from unfair treatment. The Tax Department’s Consumer Bill of Rights Regarding Tax Preparers, available free in several languages, contains important information for taxpayers on protection from unfair practices. 

Report tax evasion or fraud
Do you suspect that a tax preparer isn’t complying with the law?  You can file a complaint by calling 518-457-0578 (interpreters are available to assist). 

For more information

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