What are ghost tax preparers?

Study for the Consumer Bowl Test. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Get ready for your exam!

Ghost tax preparers refer to unqualified or dishonest individuals who offer tax preparation services without proper authorization or credentials. These preparers often fail to sign the tax returns they prepare, which is a telltale sign of their questionable legitimacy. By not disclosing their identity, they evade accountability and can engage in unethical practices, such as inflating deductions or misrepresenting information to maximize refunds.

This answer highlights the risks associated with using ghost preparers, as they can lead to severe financial consequences for individuals who unknowingly utilize their services. The other choices describe legitimate tax assistance providers, ranging from certified agents and qualified individuals to nonprofit organizations, which operate under guidelines and ethical standards, ensuring proper service delivery.

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