Avoiding scams should be on your “To Do” list of life
by Indiana Attorney General Greg Zoeller
Most people agree that filing your annual tax return ranks right up there with root canals and cleaning the gutters. Regardless of how you feel about it, they must be done. In the wake of the great recession, many Hoosiers are looking for ways to trim their tax bills. Tax scams often appeal to those in financial distress and as we approach the home stretch of filing season, it’s important to remember a few common scams to avoid.
The goal of most tax scams is to either trick people out of their money or steal their identities. The IRS has identified several methods scammers use to accomplish this.
Phishing
Phishing is a tactic used by Internet-based thieves to trick unsuspecting victims into revealing personal information such as bank account information, social security numbers and credit card numbers. Criminals use this information to empty a victim’s bank account, run up credit card charges and apply for loans or credit in the victim’s name. Phishing scams often take the form of an e-mail that appears to come from a legitimate source. Some scam e-mails falsely claim to come from the IRS. The IRS never uses e-mail to contact taxpayers about their tax issues.
Return Preparer Fraud
Dishonest tax return preparers can cause many problems for taxpayers who fall victim to their schemes. These scam artists make their money by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Some preparers promote the filing of fraudulent claims for refunds on items such as fuel tax credits to recover taxes paid in prior years. Taxpayers should choose carefully when hiring a tax preparer, especially one who promises something that seems too good to be true.
Economic Stimulus
Some scam artists pose as IRS representatives to trick taxpayers into revealing personal financial information by falsely telling them they must provide the information to get a payment, known as a “rebate.” For instance, a potential victim is told by phone or e-mail that he or she is eligible for a rebate but must provide a bank account number (or similar information) to get the payment. If the target is unwilling, the victim is then told that he cannot receive the rebate unless the information is provided. In most cases, eligible individuals will not have to do anything more than file a 2009 federal tax return.
Anyone suspecting they have been a victim of a tax scam, can report it to the IRS by submitting Form 3949-A. Taxpayers who receive unsolicited e-mail claiming to be from the IRS can forward the message to phishing@irs.gov. Deleting the e-mail after forwarding is recommended. Additionally, a complaint can be filed with the Indiana Attorney General’s Consumer Protection Division online at www.IndianaConsumer.com or by calling 1-800-382-5516.
Don’t delay – the deadline for filing is Thursday, April 15. The gutters can wait.
