Recently, the Tax Practitioners Board (TPB) issued a strong warning to the public following a court case that ended in jail time for a woman who was preparing tax returns without being legally registered.

Her name is Jessa Dabalos, also known as Jessa Van Stroe and Jessa Layola. She operated out of Perth and lodged hundreds of tax returns on behalf of people—without being legally allowed to do so.

In fact, the courts had already banned her from doing this. She was given a permanent injunction (a legal stop order) and fined $230,000 for breaching the Tax Agent Services Act 2009 more than 500 times.

But she ignored all of that.

She kept preparing and lodging tax returns, breaking the law another 365 times. This time, the Federal Court had had enough and sentenced her to 12 months in jail. The judge said her actions were serious enough to be considered criminal and that they threatened public trust in the justice system.

The Tax Practitioners Board (TPB) is now pushing a clear message: if you prepare tax returns and give tax advice without being registered, you could go to jail.

So, What’s the Big Deal?

At first glance, it might not seem like a big issue. You might think:
“She helped people with their taxes—what’s the harm?”

But here’s the truth: if you’re using an unregistered tax preparer, you’re putting your financial future at risk.

Here’s why:

• They’re not subject to the same ethical or legal standards as registered agents.

• They can give wrong advice, lodge inaccurate or even false returns, and leave you liable for the consequences.

• If something goes wrong, there’s no protection for you—you’re on your own.

What Are the Risks to You?

Let’s break it down further. If you’ve used—or are using—someone who isn’t registered, you might be facing:

1. ATO Audits and Penalties

Unregistered preparers often use dodgy methods to get bigger refunds. This includes false deductions, inflated claims, or manipulating numbers to “look better.” If the ATO audits your return and finds out, guess who’s responsible? You are.

Even if you didn’t know it was wrong, you signed the return. That means you’re on the hook for:

• Paying back any overclaimed refunds

• Interest

• Penalties

• And potentially even fraud investigations

2. Loss of Privacy and Identity Theft

An unregistered preparer doesn’t follow the same security rules that registered professionals do. That means:

• Your Tax File Number (TFN) and other personal info might not be stored safely.

• Your data could be shared, sold, or used to lodge returns in your name—without your consent.

3. No Professional Indemnity Insurance

Registered agents must carry professional indemnity insurance. This protects you if something goes wrong. Unregistered preparers have no such requirement—and no safety net for you.

4. No Right to Complain

If you’ve got a problem with a registered tax agent, you can lodge a complaint with the TPB. But if the person isn’t registered, you have no official path to seek help. You may end up spending thousands in legal fees chasing someone who isn’t accountable.

How to Tell if Someone Is Registered

It’s surprisingly easy to check someone’s registration. Here’s how:

1. Ask them for their registration number – A genuine tax agent will not hesitate.

2. Go to www.tpb.gov.au and click on “Search the Register.”

3. Enter their name or business name. The system will show whether they are currently registered, suspended, or never registered.

If their name doesn’t appear, or appears as deregistered, that’s a huge red flag.

Don’t take their word for it—check it yourself.

Let’s face it—most people aren’t going to search the TPB register, and asking for a registration number might not help if the person lies or gives you a fake one.

So here are real-world red flags that suggest someone may not be properly registered:

Why Do People Still Use Unregistered Preparers?

Often, it’s because:

• They’re cheaper

• They’re someone they know personally

• They promise a bigger refund

• They operate in certain communities where trust is built informally

But in most of these cases, what’s actually happening is:

• Returns are being falsely inflated

• Risk is being shifted onto you

• And illegal behaviour is being rewarded

And when it all unravels—it’s your refund that’s gone, your penalties that are due, and your reputation that’s on the line.

The Message Is Clear: Use a Registered Tax Agent

The TPB and the courts are sending a message that this kind of misconduct won’t be tolerated. But their message is also a warning to you, the taxpayer:

If you work with someone unregistered, you are not protected.

You need to be asking:

• Is my preparer registered?

• Do they have the right knowledge and systems in place?

• Do they have insurance if something goes wrong?

• Am I safe if the ATO reviews my return?

If you can’t answer “yes” to all of these, then it’s time to reconsider your position.

What You Should Do Now

If you’ve used someone who isn’t registered—or even if you’re not sure—you need to act right away.

✅ Review your last few years of tax returns.
✅ Check if your preparer is on the TPB register.
✅ Speak to a trusted and qualified tax professional.
✅ Amend any mistakes before the ATO finds them.

Know Someone in This Situation?

If you know someone who has been using an unregistered tax preparer, they are in serious trouble—even if they don’t know it yet.

👉 They could be audited.
👉 They could be charged penalties.
👉 They could even face criminal charges if the misconduct is serious.

It’s not just about tax—it’s about legal risk, identity theft, and financial wellbeing.

Please, encourage them to reach out to me.
I can review their situation, correct any problems, and make sure their tax affairs are 100% in order and protected.

Final Thoughts

The case of Jessa Dabalos is not just about one rogue operator. It’s about the bigger issue of trust, safety, and integrity in the tax system. There are still people out there taking advantage of others—especially in vulnerable communities.

Let’s not allow that to continue.

If you have doubts, check the register.
If you have concerns, get your tax affairs reviewed.
And if someone you know is at risk, send them my way.