Dealing with taxes can be rough enough without having to worry about scams. To avoid falling for income tax-related scams, here are a few the IRS says are among the most prevalent during tax season.
•One scam you’re most likely to see will come through your email. Phishing scams try to get the recipient to believe they’ve received an email that they have to respond to; it will solicit personal and financial information typically used to commit identity fraud.
The IRS warns that the emails could appear to come from the IRS or other related entities, including the Electronic Federal Tax Payment System.
“It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information,” the IRS said in its annual scam warning. “This includes any type of electronic communication, such as text messages and social media channels.”
If you get one of those emails, the IRS asks you to forward it to phishing@irs.gov.
•Another big problem for the IRS and taxpayers is identity theft. That’s when someone else files taxes using your Social Security number to try to collect a refund.
If the IRS receives more than one return using the same name and number, a notice is supposed to be sent out to alert the taxpayer another return has been submitted.
If you have any reason to suspect someone else might be using your personal information, visitwww.IRS.gov/identitytheft for more information.
The IRS says it thwarted attempts to steal $1.4 billion in identity theft scams in 2011.
•Another area with potential problems, according to the IRS, is fraud committed by tax preparers.
There are plenty of well-qualified legitimate tax preparers out there, should you choose to go that route.
Watch out for these signs that could tip you off that you’ve gotten one of the others: The preparer doesn’t sign the return or include his or her Preparer Tax Identification Number; won’t give you a copy of your return; charges you a fee that’s a percentage of your refund; or tries to get you lie on your return by creating phony income or expenses.
•Lastly, remember that refund anticipation loans make money for those offering them. Refunds on electronically filed returns come quickly. It’s worth the wait.
Mitch Lipka is a nationally known consumer columnist and runs TheConsumerChronicle.com. He lives in Worcester. You can find him on Facebook at http://on.fb.me/MitchLipka. If you’re having a run-in with a business, think you’re being mistreated as a consumer or have seen something that you think your fellow consumers ought to know about, let him know. You can email Mitch at ConsumerNews@Aol.com.
