Uncredentialed tax preparer errors included fictitious deductions, review shows

Uncredentialed preparers of tax returns often produced returns containing basic errors, inflated deductions, and misapplied credits, an investigation during the 2025 filing season found.

The report, released last month by the Center for Taxpayer Rights, comes as Congress considers giving the IRS more oversight of the industry, a move the AICPA supports with its endorsement of the Taxpayer Assistance and Service Act.

The nonprofit advocacy group used mystery shoppers to visit tax preparers in six states, where testers posed as typical low-income filers and asked for help with three common tax situations.

The results show numerous mistakes made by uncredentialed preparers leading to incorrect refund amounts. The report said the most problematic area the testing found was related to Schedule C income. See more findings.