Questions to ask before you hire a tax preparer

FOR IMMEDIATE RELEASE - 1/16/2025

When you hire a tax preparer, you’re giving them your most sensitive information, including identification numbers and financial data.

With that in mind, the SCDOR wants you to be sure you are hiring a reputable professional before you hand your information over.

Most tax professionals are honest, but the IRS and SCDOR regularly prosecute tax preparers who aren’t:

• Since 2022, federal judges have sentenced 347 tax preparers as part of the IRS Abusive Return Preparer Program.
• The Federal Trade Commission received 22,676 reports of tax preparer fraud from 2021-2023​
• In November 2024, a former tax preparer arrested by the SCDOR was sentenced to two years of probation for the preparation of false or fraudulent returns.

Here are some questions you should ask a tax preparer before you hire them:​​

• Do you have an IRS-issued Preparer Tax Identification Number (PTIN)? Legally, anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2025 PTIN before preparing returns.
  • Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to help find a preparer.
• Can I meet you in person? Don’t hire someone to prepare your taxes who you spotted on social media without some careful vetting. Some legitimate preparers do their entire business online. But be careful before handing over your information and any money to a preparer you have only met on the phone or electronically.
• What is your fee? It’s a red flag if a preparer bases their fee on a percentage of your refund. If your preparer is taking their fee from your refund amount, make sure you know that up front and understand what your refund amount will be. Do not hand over your tax documents or personal information before making this request. 

​Also, make sure you understand what bank account information is included on your return. If it’s not your bank account information, make sure you understand why.

• Will you file my return electronically? Electronic filing is the most accurate and secure option and the fastest way to receive your refund, if applicable.
• ​Why do you need these documents or receipts? Make sure you understand the reason if a tax preparer asks you for receipts or other documentation that you may not think is relevant to your Individual Income Tax return. Some dishonest preparers will prepare false returns claiming fraudulent business expenses to inflate a refund.
• Why is this refund higher than my previous refunds? If your refund is significantly higher than in past years, make sure you understand why before your return is filed. It’s possible your preparer has inflated expenses or deductions.
• Can I review my return before signing? You are still responsible for information on your return, even if someone else prepared it. Make sure your preparer signs the return, and do not file a return that your preparer has not signed or will not sign.
• Can I have a copy of my return? Don’t overlook this step before you leave your preparer’s office. Maintaining a copy of your return will make life easier when you go to file next year’s return, and if you have any issues before then.
• How can I reach you after tax season is over? A reputable tax preparer should be available after the filing deadline if you have questions.

Fighting fraud is the SCDOR's highest priority

The SCDOR will begin processing returns February 3, 2025, to allow employers time to meet the January 31 W-2 submission deadline.

We take every step possible to verify your return—even if it means processing takes a little longer.

Tax return and refund processing is expected to take up to 8 weeks from February 3 or the date you file, whichever is later, so that we can use all available tools to check for fraud. Remember – Protecting your refund is worth the wait.

Remember – 2024 South Carolina Individual Income Tax returns are due May 1, 2025, due to relief granted in October as the result of Hurricane Helene.

Head to Instagram for more tax season tips!

We’re providing filing tips all season long at @theSCDOR​. Plus, our Instagram account is a fun way to learn more about job openings at our agency, upcoming Taxpayer Education events, and more. 

Stay connected

Find more tax season resources at dor.sc.gov/iit. Follow the SCDOR on Facebook, X (formerly known as Twitter), and YouTube, and subscribe to ReveNews for the latest updates, resources, and reminders.

​​###

MEDIA INQUIRIES:

SCDOR Public Information Office
news@dor.sc.gov

​Follow us on X (formerly known as Twitter) @SCDOR