Atlanta Tax Sharks Circle As IRS Flags Surge In Fraud

Tax season is barely underway in Atlanta and federal investigators say the scams are already circling. As filers race toward the April deadline, IRS Criminal Investigation agents are warning that dishonest tax preparers and slick online schemes are zeroing in on local taxpayers, sometimes vanishing with refunds or leaving clients holding the bag when the IRS comes calling.

According to the agency’s Fiscal Year 2025 annual report, IRS Criminal Investigation identified $10.59 billion in financial crimes over the year. Of that total, $4.5 billion was tied to tax fraud, a sharp jump from FY24, IRS Criminal Investigation reports.

Speaking with 11Alive, Assistant Special Agent in Charge Maisha Horton warned that everything from shady storefront preparers to polished social media pitches is being used to lure filers. Her message was blunt: verify who is doing your return, make sure they sign it, and keep a copy, because when something goes wrong, the IRS looks at the taxpayer first.

What Scams Look Like

Investigators and local reporters describe a familiar pattern. Red flags include preparers who:

• Guarantee unusually large refunds without looking at your paperwork
• Pressure you to sign a blank or incomplete return
• Charge fees based on a percentage of your refund
• Insist your refund be routed through their bank account first

Atlanta News First has spotlighted so-called "ghost preparers" who file false claims under someone else’s name, then disappear. Clients often find out months later, when an audit notice arrives along with penalties and interest for a return they barely recognize.

How To Protect Yourself

Authorities say taxpayers can cut their risk significantly by treating return preparation like any other professional service, not a quick favor for fast cash. They recommend that filers:

• Insist that any paid preparer sign the return and include a valid Preparer Tax Identification Number (PTIN)
• Demand a complete copy of the filed return for personal records
• Avoid anyone who promises inflated refunds or ties their fee to the refund amount
• Refuse arrangements where the refund goes to the preparer’s account first

The IRS accepts tips on abusive tax promoters and preparers through Form 14242. Details on how to report suspected tax scams and fraud can be found in IRS materials, and advocacy groups such as AARP publish consumer-focused guides that spell out common tax season traps.

Legal Consequences For Crooked Preparers

When preparers cross the line from sloppy to fraudulent, federal authorities say they are prepared to shut them down. Civil injunctions can bar bad actors from preparing returns, while criminal prosecutions aim to recoup stolen money and send a message to others thinking about gaming the system.

The Justice Department has filed lawsuits seeking to permanently bar certain Atlanta-area preparers from the tax business and to force them to give up fees they collected, according to the Justice Department. Prosecutors in Georgia have also secured convictions and prison sentences in several return-preparer fraud cases.

Investigators urge anyone who suspects they were targeted to move quickly. Save every text, email, receipt and copy of your return, and report the issue as soon as possible. Atlanta agents say the recent jump in identified tax fraud is a reminder that a few extra minutes vetting your preparer can save years of headaches with audits, penalties or missing refunds.