The IRS tried to make it mandatory for tax preparers to have a PTIN (Preparer Tax Identification Number), but a judge ruled that the IRS didn’t have the authority to do so. Tax Defense Network advises taxpayers to be careful when choosing a preparer to file their taxes.

Taxpayers complain that some tax preparers advertise low fees, but after the tax return has been prepared, they charge much more than what was agreed upon. The preparer will claim that the preparation was more complicated when questioned about the hike in fees.

Eric T. Schneiderman, New York Attorney General, recently offered his opinion on IRS tax scams by tax preparers. “Taking advantage of innocent people in this tough economy is shameful and will not be tolerated by my office.”

Easy targets by scam tax preparers are usually college students and the elderly. Some fraud tax preparers try to convince taxpayers to evade taxes through ponzi schemes. Many taxpayers have been duped by fraud tax preparers that falsify information on a taxpayer’s tax return to claim a bigger refund.

The PTIN was designed to make it difficult for scam tax preparers to falsify documents, but until the IRS can make it mandatory for all tax preparers, taxpayers need to be cautious when having their tax returns prepared professionally.

Ever year tax refund scams increase. Filing fraudulent tax returns to gain big refunds is an old tax crime, but the methods used by crooks to get the tax information keep improving.