Episode•January 11, 2024•21 min

Tax Prep Red Flags: Don't Get Audited! | Ep. 293

Are you ready to pick the perfect tax professional and avoid the pitfalls of problematic preparers? Tune in to this enlightening episode of Money Talk With Tiff as Tiffany Grant welcomes back the knowledgeable Camari Ellis for a deep dive into the red flags of tax preparation. Camari, an Enrolled Agent, shares invaluable insights on distinguishing between various tax preparers, such as CPAs, EAs, attorneys, and the unenrolled. He emphasizes the significance of never surrendering your original tax documents and the importance of ensuring your tax preparer includes their PTIN on your return to avoid becoming ensnared in their potential audits. Discover why bigger refunds aren't always better and how choosing a tax preparer who can't answer your questions can lead to trouble. Camari and Tiffany discuss why an informed client is the best client and how to foster a proactive relationship with your tax professional for strategic planning all year round. Don't let the allure of a large refund or the convenience of a back-of-the-gas-station tax service lead you astray. Listen to this episode and arm yourself with the knowledge to select a tax preparer who is above board, knowledgeable, and invested in your financial well-being. Share this episode to spread the word and help others stay on the right side of the IRS! About Our Guest Camari Ellis is a Tax Advisor, with over 30 years of experience in the Financial Services & Tax Industry. He is a Black Wealth Advocate. He graduated from Temple University, majoring in Finance, and loves everything related to business, the stock market, and social media. Connect with Camari Email: [email protected] Book a meeting: https://bookme.name/CamariEllis/consultation Twitter (X): @thefinancerebel Instagram: @thefinancerebel YouTube: https://www.youtube.com/@TheFinanceRebel Connect with Tiffany Website: https://moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Channel Pinterest: Money Talk With Tiff Additional Links & Resources Internal Revenue Service | An official website of the United States government Support this Podcast Copyright 2023 Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

Never surrender original tax documents to your preparer

Always provide copies or upload scans to a secure portal

If the preparer goes out of business or passes away, retrieving originals can be extremely difficult

Create an IRS online account to access transcripts as a backup

Ensure your tax preparer includes their PTIN on your return

PTIN stands for Preparer Tax Identification Number

Ghost preparers may file under your name only, leaving you solely responsible

A legitimate preparer with a PTIN is held to higher professional standards and can be held accountable

Bigger refunds aren't always better and can signal trouble

Preparers promising unusually large refunds may be making improper deductions

If the preparer is audited, their clients often face audits too

Interest and penalties from fraudulent returns can exceed any initial refund gained

Choose a preparer who can answer your questions and explain deductions

Avoid "tax data entry" people who simply key in numbers without understanding tax law

A good preparer guides you on legitimate deductions (e.g., portion of cell phone use)

Informed clients who ask questions and keep good records become the best clients

Work year-round with your tax professional for proactive planning

Don't wait until tax season to strategize

Maintain accurate books throughout the year

An informed client who communicates regularly avoids last-minute problems

Intro

Tiffany Grant welcomes back Enrolled Agent Camari Ellis to discuss red flags when choosing a tax preparer and how to avoid IRS trouble.

Camari Ellis is a Tax Advisor and Enrolled Agent with over 30 years in financial services and tax. He is a Black Wealth Advocate and Temple University Finance graduate.

Tax Prep Red Flags: Don't Get Audited! | Ep. 293

Key Takeaways

Intro

– Types of Tax Preparers Explained

– Red Flag #1: Promises of Big Refunds

– Red Flag #2: Demanding Original Documents

– Red Flag #3: No PTIN or Ghost Preparers

– Red Flag #4: Preparer Gets Audited — Clients Follow

– Red Flag #5: Can't Answer Questions About Your Return

– Be an Informed, Proactive Client

Resources

Topics