Federal prosecutors and IRS Criminal Investigation are sounding the alarm for San Antonio-area taxpayers about so-called “ghost” tax preparers, the kind of paid filer who helps with your return, takes a fee, then refuses to sign or provide a Preparer Tax Identification Number. That move can leave clients wide open to fraud, identity theft, and a tough conversation with the IRS when the numbers do not add up. The warning, issued in the thick of tax season and amplified locally by the U.S. Attorney’s Office for the Western District of Texas, highlights how unsigned returns and missing PTINs make it easier for shady preparers to disappear after inflating refunds or diverting money.
U.S. Attorney Boosts IRS-CI Warning
As posted by U.S. Attorney WDTX, the local office shared IRS Criminal Investigation’s alert that focused on two big red flags: preparers who will not sign a tax return and those who refuse to provide a PTIN. The message urged taxpayers to stick with trusted professionals and to refuse to sign any return that is incomplete. Local officials used the warning to remind residents that tax-season scams constantly evolve and that falling for one can carry serious financial fallout.
What Ghost Preparers Actually Do
A “ghost” preparer will complete a return for a fee, then tell the taxpayer to file it while avoiding any signature line or PTIN, which by law identifies the paid preparer. That missing identifier makes it far tougher for investigators to track wrongdoing back to the person who actually did the work. According to the IRS, that omission is a major warning sign, and taxpayers are still legally responsible for everything on their returns. The agency placed ghost preparers on its 2026 Dirty Dozen list and warned that the tactic often comes bundled with schemes that pump up refunds or secretly reroute them.
Prosecutions Show the Stakes
Federal courts have already shown what happens when preparers cross the legal line. The U.S. Attorney’s Office in the Western District of Texas reported that a San Antonio tax preparer was sentenced after submitting false returns and pocketing clients’ refunds. That case illustrates how unsigned or manipulated filings can hide criminal conduct while leaving the taxpayer on the hook for penalties and repayment. The National Taxpayer Advocate has also noted that the IRS sent roughly 10,000 letters to taxpayers in an effort to flag suspected ghost preparers, and that the responses generated useful leads for investigators.
How to Spot and Report a Ghost Preparer
To protect yourself, officials say you should insist that any paid preparer provide a PTIN and professional credentials, and you should read through the entire return line by line before signing. Never sign a blank or partially filled out return, even if the preparer promises to “finish it later.” The IRS advises taxpayers to keep copies of all documents, have refunds deposited into their own bank accounts, and, if misconduct is suspected, to use its complaint process and Forms 14157 and 14157-A, according to the IRS. The complaint page explains how to submit information and supporting documents online, by fax, or through the mail to the Return Preparer Office.
Legal Risks for Preparers and Taxpayers
Ghost preparing is not just sketchy business practice. It can lead to criminal fraud charges, and convicted preparers have faced prison time along with restitution orders, according to federal prosecutions. Taxpayers who sign the returns, however, remain legally responsible for what gets filed in their name, which means they can face audits, penalties, or demands to pay back refunds even if a preparer engineered the scheme. Attorneys and taxpayer advocates say detailed records of communications and payments can be crucial if regulators or prosecutors later scrutinize a return.
Tax season fills the calendar for both honest professionals and opportunists, so vigilance matters. If you suspect a ghost preparer or any other misconduct, keep all records of conversations and payments, and contact the IRS Return Preparer Office or your local U.S. Attorney’s Office to report what happened.
