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  Geebo 9:00 am on January 16, 2025 Permalink | Reply
  Tags: income tax ( 14 ), IRS ( 25 ), Scams ( 1,406 ), tax preparer scam, tax scam ( 12 )   

  Tax Season Scams: What You Need to Know 

  

  By Greg Collier

  As tax season approaches, individuals and families are preparing to organize their financial records and submit their returns. With W-2 forms landing in mailboxes and deadlines on the horizon, it’s essential to remain wary against scams and misleading tax advice that surface during this time of year.

  The IRS emphasizes that if an offer or promise seems too good to be true, it probably is. Social media is a growing hub for questionable tax advice, with posts encouraging users to falsify information or misrepresent credits to maximize refunds. Falling for such guidance could lead to severe legal consequences and audits, making it crucial to verify the legitimacy of any advice you follow.

  Scammers often pose as representatives of the IRS, employing tactics such as threats, demands for immediate payment, or promises to resolve tax issues instantly. The IRS never initiates contact via text messages, emails, or phone calls. Official communication comes exclusively through mail. Any message urging immediate action or threatening penalties should be met with skepticism. Filing your taxes promptly can help minimize risks of identity theft, as it reduces the chance for fraudsters to file in your name and claim your refund.

  Organizations like the Better Business Bureau (BBB) play a key role in educating consumers about tax scams. Reports to scam trackers often involve individuals receiving fraudulent calls, emails, or texts from impostors claiming to be with the IRS. These messages may include links to fake payment portals or demand sensitive information. Verifying the legitimacy of any contact with the IRS is critical, and trusted resources like the BBB can provide insight into whether a tax preparer or advertisement is reputable.

  Ultimately, staying proactive and informed is the best defense during tax season. By filing early, verifying information, and avoiding unsolicited messages claiming to resolve tax issues, you can protect your finances and identity from potential scams. Tax season can be stressful, but with the right precautions, it doesn’t have to be.

   

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  Geebo 9:00 am on January 24, 2024 Permalink | Reply
  Tags: income tax ( 14 ), IRS ( 25 ), Scams ( 1,406 ), tax preparer scam, tax return ( 4 ), tax scam ( 12 )   

  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.

   
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  Geebo 8:00 am on March 28, 2023 Permalink | Reply
  Tags: income tax ( 14 ), Scams ( 1,406 ), tax preparer scam, tax return ( 4 ), tax scam ( 12 ), taxes ( 8 )   

  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.