Tax Tip Tuesday: Red flag alert

Tax Tip #3: Tax preparer red flags

YUMA, Ariz. (KYMA) - New week, new tax tip.

By now, many of you should have received your W2's and may have a few tax professionals reaching out to file your return.

However, there are certain red flags to look out for.

IRS special agent Brian Watson says never go to a tax preparer who requests cash only.

Also, when filing your return with a tax professional make sure to ask for a receipt.

Always ensure the preparer signs your return with a P-TIN, better known as a prepared tax identification number.

“We’ve found that the shady return preparers will not put their name on the return even though they’re paid," Watson said.

The IRS makes its directory of p-tin holders available for public search online.

You can use the directory to find professional, credentialed tax preparers in your area.

Another red flag, any return preparer who promises a huge refund when they haven’t even seen your information or a paid return preparer who bases his or her fee on a percentage of the refund.

These are often built-in incentives to pad your return with deductions you're not entitled to.