IRS urged to crack down on ghost preparers in new GAO report

Tax season brings plenty of worries, but a new federal warning highlights a hidden danger that can land you in deep trouble with the government. The Government Accountability Office released a report on Friday showing that the Internal Revenue Service needs to do much more to track down and stop so-called ghost preparers. These are paid tax professionals who intentionally leave their identifying information and signatures off client returns to avoid accountability. According to the report, ghost preparers handled a share of the millions of returns filed by paid professionals who managed over half of all tax returns in fiscal year 2025. When things go wrong, these anonymous preparers disappear into thin air while leaving the taxpayer entirely responsible for false information, fraudulent deductions or stolen refunds. "Ghost preparers are paid tax preparers who hide their identities on returns and avoid accountability for making errors, committing fraud or stealing refunds," the report stated. The investigation found that IRS efforts to catch these bad actors are fragmented across six different offices with data scattered across disconnected databases. As a result, the agency does not even know the total number of ghost preparers it has identified or investigated. IRS CEO Frank Bisignano responded that the agency agreed with the recommendations and will work to improve data integration and cross-functional coordination. Courts have already ordered individual ghost preparers to pay millions of dollars in restitution, but the full scale of the fraud remains hidden. For your business and personal filings, always verify that your tax preparer signs your return with their proper preparer tax identification number. If your accountant tries to hand you a return without their signature on the bottom, treat it as a massive red flag before you sign your name to it.