Taxpayer data is sensitive. Limit access, use secure transfer and storage, and do not disclose or use tax return information without appropriate authorization or a legal exception. Federal rules under Internal Revenue Code section 7216 and related regulations can apply to preparer disclosures and uses.

Preparers must make reasonable inquiries when information seems incorrect, inconsistent, or incomplete.

Additional paid-preparer due diligence requirements apply to certain benefits, including EITC, CTC/ACTC/ODC, AOTC, and head-of-household filing status; Form 8867 and related records may be required. Check the latest IRS requirements.

Common warning signs: A claimed dependent who may live elsewhere; self-employment income with no supporting records; inconsistent identity information; an unexplained missing W-2; or pressure to “make the refund bigger.” A red flag is a reason to investigate, not proof of wrongdoing.