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  • Geebo 8:00 am on June 13, 2024 Permalink | Reply
    Tags: income tax, , , tax debt relief,   

    Tax debt relief scams return 

    Tax debt relief scams return

    By Greg Collier

    Tax debt relief scams are on the rise, targeting vulnerable individuals with promises of settling tax obligations for mere pennies on the dollar. These scammers are exploiting the reputation of legitimate businesses to deceive people into handing over their money.

    One potential victim from Tennessee, for instance, was sitting on her front porch when she received an unsolicited call. Despite her poor vision, she quickly recognized the call for what it was, a scam. The caller claimed to be from the IRS Tax Relief Program. She knew better than to fall for the ploy and promptly hung up.

    Thanks to information from trustworthy sources, she knew that the IRS and Social Security never make unsolicited calls. They communicate through letters. This knowledge protected her from becoming a victim.

    It’s crucial to understand that the IRS will never call you out of the blue. There is no IRS Tax Relief Program that will contact you by phone. Scammers are simply dialing random numbers, hoping to find someone with a tax issue.

    To avoid tax debt relief scams, remember these key points. The IRS will never call you unsolicited. They only send letters. If you receive a letter from the IRS, attempt to resolve the issue directly with the agency. The IRS may offer a monthly payment plan or a way to pay less than you owe, but you must engage with them directly. Do not trust any company that claims you have ‘qualified’ or are ‘eligible’ for an IRS program. Only the IRS can make such determinations.

    By staying informed and cautious, you can protect yourself and your savings from these fraudulent schemes.

     

  • Geebo 8:00 am on April 3, 2024 Permalink | Reply
    Tags: income tax, , IRS Online Accounts,   

    IRS warns of latest income tax scam 

    IRS warns of latest income tax scam

    By Greg Collier

    As Tax Day looms closer, the Internal Revenue Service (IRS) is ramping up its efforts to caution taxpayers against falling victim to common scams that could jeopardize their financial security. In its latest warning, the IRS is highlighting the dangers of scammers posing as helpful third parties offering assistance with IRS online accounts.

    With the convenience and efficiency of IRS Online Accounts for managing federal tax information, it’s no surprise that they have become a prime target for cybercriminals seeking to exploit unsuspecting taxpayers. These scammers employ deceptive tactics, often masquerading as friendly helpers offering to set up online accounts on behalf of taxpayers. However, their true intent is far from benevolent, as they aim to pilfer sensitive personal information to carry out fraudulent activities such as filing false tax returns and accessing financial accounts.

    The method these scammers use is alarmingly simple yet effective. By preying on individuals’ trust and the perceived complexity of setting up an IRS Online Account, they deceive taxpayers into divulging sensitive details like Social Security numbers, Individual Taxpayer Identification numbers (TINs), and home addresses. Armed with this information, they can wreak havoc on victims’ financial lives, from filing bogus tax returns to obtaining loans and opening fraudulent credit accounts.

    The IRS emphasizes a crucial point that taxpayers should never enlist the help of third parties to set up their IRS Online Accounts. The only legitimate avenue for creating these accounts is through the official IRS.gov website.

    In conclusion, the IRS’s warning serves as a timely reminder for taxpayers to exercise diligence and skepticism when approached by individuals offering assistance with IRS online accounts. By heeding these cautionary advisories and staying informed about prevalent scams, taxpayers can fortify their defenses against fraudulent activities and ensure a secure tax filing experience.

    Related Video: Internal Revenue Service issues scam warning

     

  • Geebo 9:00 am on January 24, 2024 Permalink | Reply
    Tags: income tax, , , , ,   

    Tax season scams have already started 

    Tax season scams have already started

    By Greg Collier

    This coming Monday, January 29th, is the first day you can file your income tax return. Scammers are aware of this, and will spend the next three months trying to steal from you using your tax return as bait. One report even states that scammers have already started sending out emails impersonating the IRS. The unsolicited emails state you can check the status of your return by clicking on a link. The link will more than likely take you to a website where you’ll be asked to enter your personal information in order to steal your identity. But, that isn’t the only tax scam you should be on the lookout for.

    The IRS impersonation scam stands out as the most prevalent fraudulent activity. In this scheme, perpetrators pretend to be representatives of the IRS when contacting their targets. Usually, these fraudulent callers inform their victims that they are delinquent in their taxes and insist on an immediate payment. Alternatively, some scammers falsely claim that the target is owed a refund and request bank account information. It’s important to note that the IRS typically does not communicate with individuals over the phone regarding tax matters. Any issues with a tax return would be addressed through the mail.

    During tax season, there’s an influx of transient tax preparers who may not have a reliable and long-term presence. If you plan to enlist the services of a professional to file your taxes, it’s crucial to thoroughly research the individual or company beforehand. Exercise caution if a tax preparer indicates an intention to close operations immediately after the filing deadline. In the event of an audit, having a tax preparer who can provide assistance is essential.

    Additionally, be cautious of tax preparers who link their fees to your tax refund. Fees should be determined based on the complexity of your tax return, not the refund amount. Ensure that the fee structure aligns with the effort required to complete your tax filing accurately.

    The most devastating tax scam involves scammers attempting to file a tax return using your identity. This underscores the importance of filing your return promptly. If a scammer successfully files a return in your name, you will likely receive a letter from the IRS indicating the receipt of duplicate returns. In the unfortunate event that you fall victim to this scam, it’s crucial to contact the IRS immediately.

    Delaying your response can complicate the process of rectifying the situation and recovering your tax return. Swift action is essential to minimize the impact of identity-related tax scams. Stay vigilant, file your return as early as possible, and promptly address any suspicious activity with the IRS if you suspect fraudulent filings in your name.

     

  • Geebo 8:00 am on March 28, 2023 Permalink | Reply
    Tags: income tax, , , , ,   

    Not all tax preparers are on the level 

    Not all tax preparers are on the level

    By Greg Collier

    With the income tax deadline less than a month away, we’re sure there are still some who haven’t filed their tax return yet. One of the many benefits of filing early is avoiding a scam that was commonplace during the pandemic. Scammers would file returns in their victim’s name, and collect the return payment. When the victim went to file their return themselves, they would get a letter stating someone else had already claimed their return. This resulted in a bureaucratic nightmare for the victims. If you still haven’t filed, there’s another scam that you need to be aware of, especially if you’re having your taxes done professionally.

    A woman from Virginia is out $3000 after she allowed a company to process her tax return. She found an ad for the company through a social media ad, which we would never recommend doing. The victim went to the company’s website, and they appeared to be legitimate. She even had multiple conversations with the company over the phone and through emails. However, when it came to her tax return, the company allegedly filed her return without her permission and stole the payment. When the victim tried to contact the company, they had already disappeared.

    If you still need your taxes prepared, there are ways to protect yourself from this scam. Make sure to choose a tax preparer who is licensed and registered with the IRS. You can check the credentials of a tax preparer on the IRS website or through the Better Business Bureau.

    If a tax preparer promises you a big refund without even looking at your tax documents, it’s probably too good to be true. Avoid tax preparers who make unrealistic promises.

    Never sign a blank tax return or one that has incomplete information. Review your tax return thoroughly before signing it.

    Review your tax return for accuracy before submitting it to the IRS. If you notice any errors, contact your tax preparer immediately.

     

  • Geebo 9:00 am on February 7, 2023 Permalink | Reply
    Tags: income tax, , , ,   

    New scam targets taxpayers 

    By Greg Collier

    In previous posts about tax season, we’ve warned our readers about the typical scams they might encounter. One of the tips we always give is that the IRS will never call or email you about your income tax return. Instead, the agency sends their notices through postal mail. But what if you got something in the mail that said you owed tax money? That’s what residents of Pennsylvania are having to deal with right now.

    Residents of the Keystone State have already started receiving letters in the mail which claim they owe the state a substantial amount in back taxes. Moreover, the letters residents are receiving threaten them with both wage garnishment and seizure of property if the bill is not paid. The letters are even labeled with “Final Demand for Payment”.

    All of these threats are part of common tactics used in most scams. First, the scammer wants you to have a sense of panic upon seeing the letter. They’re hoping to scare you into sending them a payment without doing any further research. Then the scammers increase the urgency of that fear by using threats of financial loss.

    If you receive a letter like this, don’t panic. Do your research. According to the Pennsylvania Department of Revenue, these letters are supposedly being sent by the ‘Tax Assessment Procedures Domestic Judgment Registry’. There is no such office or department in the state of Pennsylvania, or any other state for that matter. A quick Google search turns up a number of state complaints about this scam.

    Also, never call any phone number that may be included in the contents of the letter. That number will just be manned by scammers looking to intimidate you further into making a payment. Instead, go to your state’s Department of Revenues website to locate their direct contact information. They should be able to provide you with correct information about any possible tax balances.

     

  • Geebo 9:00 am on January 31, 2023 Permalink | Reply
    Tags: income tax, , , ,   

    Tax season means time to look out for tax scams 

    Tax season means time to look out for tax scams

    By Greg Collier

    With most employers releasing W2 forms to their employees, it’s time for most of us to start thinking about our tax returns. This year’s deadline is April 18th which will be here before you know it. However, it’s not just the deadline you may have to worry about. There are con artists out there looking to take advantage of your tax return.

    The most common scam is one that takes place all year round, and it’s the IRS impersonation scam. Currently, the Better Business Bureau is warning consumers about receiving phone calls from people claiming to be from the IRS. Typically, these scammers will tell their victims they’re behind in their taxes and demand an immediate payment. Other scammers will say that you’re owed a refund and will ask for your bank account information. In either case, the IRS generally does not call people over the hone. If there was an issue with your return, you would be contacted through the mail.

    Also, during tax season, a number of fly-by-night tax preparers will appear. If you intend to have a professional file your taxes, research that professional or company first. You should be wary of any tax preparer that intends to close up shop after the filing deadline. In case there is an audit, you’d want your tax preparer to be able to help you. Also, be wary of tax preparers who tie their fee to your tax refund. Fees are supposed to be based on how difficult it is to complete your tax return, not your refund.

    Lastly, and the most devastating of tax scams, is when a scammer tries to file a return in your name. This is the main reason why you should file your return as soon as possible. If a scammer did file a return in your name, you’ll receive a letter from the IRS stating they’ve received duplicate returns. If you do become a victim of this scam, contact the IRS right away. The longer you wait, the more difficult it could be to get your tax return.

     

  • Geebo 9:00 am on March 2, 2022 Permalink | Reply
    Tags: , income tax, , , , ,   

    Here’s how to deal with tax scammers on the phone 

    Here's how to avoid tax scammers on the phone

    By Greg Collier

    We’re just a month and a half away from the tax deadline this year. In 2022, there’s no courtesy extension due to the pandemic. U.S. tax returns are due on Monday, April 18th. As the deadline draws closer, scammers may see it as having their own deadline, the deadline to commit as many tax scams as possible. Not all tax scammers are after your refund check. Many of them are attempting to get your sensitive personal information instead. To accomplish this, they’ll imitate the one federal agency that everyone fears, the IRS.

    Many scammers will call their victims, posing as the Internal Revenue Service. If the scammer is attempting to get money from you, they’ll set out to get you to make a payment to them, typically in non-traditional means like gift cards or cryptocurrency. If the scammers are trying to steal your personal information, they may tell you the IRS owes you money, but they’ll ask you for personal information to verify your identity. What they’re actually attempting is to steal your identity.

    CNBC has a great article on how to help avoid these scams. According to CNBC, if anyone calls you claiming to be the IRS saying you owe them money, ask them for as many details about the supposed case as possible. While it’s not a guarantee the scammer won’t hang up at this point, it is said that it will stop the majority of scammers from pressing forward. You can also tell the caller you’re not comfortable giving personal information over the phone and would rather continue communication by mail.

    It’s always good to keep in mind the IRS does the majority of its official communication through the postal mail. The agency will only call you if you’ve already been in contact with them through the mail. They will not call you about a case that they just opened.

     

  • Geebo 8:00 am on July 19, 2021 Permalink | Reply
    Tags: , income tax, ,   

    Victim loses $170K in IRS scam 

    Victim loses $170K in IRS scam

    By Greg Collier

    With 2020 tax returns being so confusing to file due to the pandemic and a change in tax law this year, it seems like scammers are taking advantage of that confusion. Sadly, IRS scams are nothing new. If your identity has been stolen, scammers may try to file for a refund in your name before you do. They may even try to intercept your refund check or change your direct deposit to another bank account. Then there is the old classic of IRS scams, threatening to arrest you if you don’t pay.

    A woman from Dallas, Texas recently fell victim to this scam. A pair of men called her, posing as the IRS. These men told the woman that she had a warrant out for her arrest due to unpaid taxes. Once the woman paid the scammers $10,000, the scammers became even more greedy. More calls followed with more demands for money. The scammers overplayed their hand when one of the money deliveries did not reach the scammers. One of the scammers told the woman to file a police report to recover the undelivered payment. When she went to file the report, police told her that she had been scammed. Before it was all over, the woman paid the scammers $170,000. Police were only able to recover 10% of the $170,000.

    While it may seem intimidating to receive a phone call like this, no law enforcement or federal agency is going to threaten you with arrest over the phone. The vast majority of communication that comes from the IRS is done through postal mail. The IRS does accept payments in a myriad of ways, but they recommend doing so electronically through the IRS website. For other IRS scams, you can refer to the IRS’s Consumer Alerts page.

     

  • Geebo 8:00 am on March 31, 2021 Permalink | Reply
    Tags: , income tax, , ,   

    College students targeted in tax scam 

    College students targeted in tax scam

    By Greg Collier

    With it being tax season, tax scams are on the rise. We’re not talking about the kind of tax scam where federal agents show up at your door because you claimed the squirrels in your yard as dependents. We’re talking about the kind where is either trying to separate you from your refund, or using the promise of a refund to steal your information. The latest targets in this kind of tax scam are college students.

    The IRS is warning people that anyone with an email address ending in .edu is vulnerable to this scam. The scam is essentially a phishing attack. The student receives an email that appears to be from the IRS asking the recipient to click on a link that’s labeled either “Tax Refund Payment” or “Recalculation of your tax refund payment.” If the victim clicks on the link they’re taken to a website that asks for personal information like name, date of birth and Social Security number.

    Theoretically, college students are a prime target for identity thieves. At that age they may have established any serious credit yet which is the holy grail for identity thieves. Identity thieves could use a young victim’s credit for years before the victim ever realizes it.

    There’s been this stereotype that’s been going around forever that young people are better with technology than their parents. While that may be true, they may also be unsure of how filing their income taxes and receiving a refund works. So, they might think that this phishing email is a legitimate way of claiming their income tax refund. We realize that our readers tend to be from a different demographic than college students, but we also realize that you may have a college student in your family. If you do, you may want to warn them about this potential scam.

     

  • Geebo 9:00 am on February 11, 2021 Permalink | Reply
    Tags: , , income tax, ,   

    Tax scam season is starting 

    It seems like it wasn’t that long ago that we were all filing our taxes for 2019. Due to the pandemic, the IRS gave us all a generous extension to file our income taxes. This year, we’re not so lucky. The deadline for filing your taxes this year is the traditional April 15th. So, with tax season also comes a number of tax scams which are made even more difficult to avoid due to 2020s unprecedented circumstances.

    The best tip we can give to avoid being scammed is to file your taxes as soon as possible. Last year, scammers were known to file for false returns using stolen identities. If you wait too long you could receive a notification from the IRS that someone has already filed a return using your Social Security number.

    Also, if you’re not going to do your own taxes, and you’re looking to use the services of a tax professional, research the person or company first. Dome fraudsters will set up shop looking like a legitimate tax preparer only to steal your identity and your refund while charging you to do it. Try to avoid any service that’s promising you a ‘too good to be true’ return.

    Tax season is also when scammers will attempt IRS impersonation scams. The scammers will call their victims posing as the IRS and demanding payment for any number of reasons. The one thing all these impersonators have in common is that they will try to pressure you into making a payment over the phone. The IRS does not call taxpayers about tax issues. If the IRS has a concern that they need you to resolve, they will always contact you through the regular mail.

    If you suspect one or more of these scams you can call the IRS directly at 800-829-1040.

     

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