It’s still tax season and many of us are rushing around, gathering our documents, and frantically preparing our taxes. As if it’s not hard enough to navigate through the ins and outs of the tax code and allowable deductions, according to the IRS and U.S. News & World Report, we need to be careful of tax scams as well.
If you haven’t heard of identity theft, you’ve been out of touch with society for some time now. Many of us are careful about what information we submit online or send via the U.S. Postal Service. We guard our Social Security numbers and birthdates to avoid impersonation on credit card applications that could land us in a mountain of debt that we had no part in charging. But did you know that there are identity thieves out there filing fraudulent tax returns in order to claim a refund? If you receive a letter from the IRS stating that multiple returns were filed for you, contact the IRS Identity Protection Specialized Unit immediately.
Another thing to watch for are emails claiming to be from the IRS requesting personal financial information. Even if the email claims to be from the IRS, the best idea is to question it. You can forward these phishing attempts to phishing@irs.gov. Letting the IRS know about the scammers allows them to investigate them and hopefully put a stop to their future attempts.
Lastly, if it sounds too good to be true, it usually is. If you hear that you can file a tax return with little documentation and receive a hefty refund, don’t believe it. These scammers are preying on low income individuals and spreading the word throughout the community using flyers posted in local churches. They will charge a fee for the “filing” and you will then find out that your claim is rejected and you are out the money you paid them.
I think the bottom line is, be very careful when preparing your tax returns and screen those you trust with your documentation and financial information. I know it can get costly to hire an accountant, but there are low cost preparers out there if you look. It’s better to get it done right, even if it costs you a little bit, rather than owing penalties and possibly fines for violating a law you didn’t even know existed.
Submitted by:
Bankruptcy Attorney
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