Delaware Warns of Unscrupulous Tax Preparers

March 21, 2016

Delaware Insurance Commissioner Karen Weldin Stewart is advising consumers to beware of unscrupulous tax preparers this tax-filing season.

Stewart said that the Department of Insurance has received reports of tax preparers who are wrongly informing Delawareans without health insurance that they are subject to penalty payments under the Affordable Care Act (ACA), and that some unscrupulous preparers are actually telling clients that the payments can be paid directly to that preparer, who then pockets the money.

She said these reports follow a Jan. 26 Internal Revenue Service alert warning that unscrupulous preparers are targeting consumers with limited English skills, primarily Spanish speakers.

The commissioner said undocumented immigrants, who may seek legal status in the future, are particularly vulnerable to such a scam.

Stewart said that in fact, most consumers are not subject to the ACA penalty payment because they have already purchased coverage, are covered through their employer or Medicaid, or qualify for an exemption.