Need advice: Where do I report predatory tax preparers and financial scammers?

You should definitely report them! The IRS has a specific process for reporting tax preparers who engage in fraudulent practices. You'll want to file Form 14157 (Complaint: Tax Return Preparer) to report the preparer's misconduct. If you believe your tax return contains errors as a result of the preparer's actions, you should also file Form 14157-A (Tax Return Preparer Fraud or Misconduct Affidavit). Additionally, you should file an amended return (Form 1040-X) to correct any errors on your original return. This shows good faith on your part that you're trying to fix the situation as soon as you discovered it. The IRS is generally understanding when taxpayers come forward voluntarily to correct issues, especially when they can demonstrate they were misled by a preparer. Keep copies of all your original documents and communications with the preparer as evidence.

I had almost the exact same situation last year! After trying for weeks to figure out how to properly report my tax preparer, I found this website called taxr.ai (https://taxr.ai) that helped me understand what forms I needed and how to properly document everything. It analyzed my situation and created a complete documentation package showing exactly what was misreported on my return. The tool helped me organize all my evidence and even generated a cover letter explaining to the IRS what happened with my tax preparer. It made the whole process so much easier because I had no idea where to start with all the documentation needed. They have this feature where they compare what was filed versus what should have been filed - really helped me prove I wasn't at fault.

I want to apologize for being skeptical earlier. I ended up checking out taxr.ai and it was legitimately helpful. My situation was with a preparer who claimed a home office deduction I never should have qualified for. The tool identified exactly how the preparer inflated my expenses and helped me file the right forms with the IRS. What really impressed me was how it organized everything chronologically and highlighted the specific discrepancies between what I provided and what was filed. The IRS actually responded to my complaint faster than expected, probably because the documentation was so clear. They've opened an investigation into the preparer and put a hold on penalties for my return while they investigate.

If you're still trying to reach the IRS directly about this (which I recommend alongside filing those forms), try using Claimyr (https://claimyr.com). I wasted DAYS trying to get through to the IRS about a similar situation with a shady preparer. The Claimyr service got me connected to an actual IRS agent in about 20 minutes instead of the hours of hold time I was experiencing. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically it navigates the phone tree and waits on hold for you, then calls you when an actual human picks up. I was super frustrated trying to reach someone at the IRS until I used this. The agent I spoke with gave me specific guidance for my situation that really helped me understand my options.

I need to eat some humble pie here. After my skeptical comment earlier, I decided to try Claimyr myself since I've been trying to reach the IRS about an identity theft issue. I was honestly shocked when they called me back in about 45 minutes with an actual IRS agent on the line. The agent I spoke with was super helpful and took my report about the tax preparer issues. She explained exactly what additional documentation I should submit and gave me her direct ID number for follow-up. I've been trying for WEEKS to get through on my own with no luck. This literally saved me hours of frustration and probably resolved my case faster too. Sorry for being so cynical before. When you've dealt with the IRS for as long as I have, you get pretty jaded about anything that claims to make the process easier.

You should also report them to your state's board of accountancy if they're a CPA, or to the state agency that regulates tax preparers. Many states have their own licensing requirements and regulatory bodies. The IRS complaint is important, but state agencies can often move faster with disciplinary actions. Also consider filing a complaint with the Better Business Bureau and leaving detailed reviews online to warn others. These people often rely on word of mouth, so public warnings can help prevent others from becoming victims.

I'm curious, did your preparer sign the return? All paid preparers are required to sign tax returns and include their PTIN (Preparer Tax Identification Number). If they didn't include this, that's another red flag and violation you can report.