Avoid These Tax Scams

by | Dec 18, 2018 | Newsletters

By Aaron CFP®, Managing Director

According to the IRS, thousands of people have lost millions of dollars to tax scams, but you don’t have to be a victim.  There is plenty of information on the IRS website (www.irs.gov) that can help you avoid these scams.  Here are four of the IRS “Dirty Dozen” tax scams for 2018 that you, your family, and your friends should know about:

Phishing

This scam involves fake emails or websites in which criminals attempt to steal personal information. Scam emails and websites can also infect a taxpayer’s computer with malware. Avoid opening emails or clicking on web links claiming to be from the IRS.

The IRS does not initiate contact with taxpayers via email about a bill or tax refund.  Do not click on links or download attachments from unknown or suspicious emails.

Phone Scams

The IRS has seen a surge of phone calls by criminals impersonating IRS agents who threaten taxpayers with police arrest, deportation, license revocation, and other penalties.  They demand cash through a wire transfer, prepaid debit card, or gift card.

The IRS does not initiate contact with taxpayers via phone and never calls to demand immediate payment using a specific payment method.  The IRS typically will first mail a bill to any taxpayer who owes taxes.  The IRS does not threaten to bring in law enforcement to arrest you for not paying.  The IRS cannot revoke your driver’s license, business license, or immigration status.

Identity Theft

Taxpayers need to watch out for identity theft at all times, and during tax time when some criminals file fraudulent returns using someone else’s Social Security number.

Always use security software on your computer with firewall and anti-virus protections, and use strong passwords.  Learn to recognize and avoid phishing emails, threatening phone calls, and texts from thieves posing as legitimate organizations such as a bank, credit card company, or government organization (including the IRS).

Fake Charities

There are groups masquerading as charitable organizations that solicit donations from unsuspecting contributors.  Many of these fake “charities” use names similar to familiar or nationally-known organizations.

Take a few minutes to research an organization to ensure your hard-earned money goes to legitimate charities. The IRS website has tools to check out the status of charitable organizations.

For More Information

See the article “IRS wraps up ‘Dirty Dozen’ list of tax scams for 2018; Encourages taxpayers to remain vigilant”
https://www.irs.gov/newsroom/irs-wraps-up-dirty-dozen-list-of-tax-scams-for-2018-encourages-taxpayers-to-remain-vigilant

Aaron Kirsch CFP®, Managing Director

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Avoid These Tax Scams

by | Dec 18, 2018 | Newsletters

By Aaron CFP®, Managing Director

According to the IRS, thousands of people have lost millions of dollars to tax scams, but you don’t have to be a victim.  There is plenty of information on the IRS website (www.irs.gov) that can help you avoid these scams.  Here are four of the IRS “Dirty Dozen” tax scams for 2018 that you, your family, and your friends should know about:

Phishing

This scam involves fake emails or websites in which criminals attempt to steal personal information. Scam emails and websites can also infect a taxpayer’s computer with malware. Avoid opening emails or clicking on web links claiming to be from the IRS.

The IRS does not initiate contact with taxpayers via email about a bill or tax refund.  Do not click on links or download attachments from unknown or suspicious emails.

Phone Scams

The IRS has seen a surge of phone calls by criminals impersonating IRS agents who threaten taxpayers with police arrest, deportation, license revocation, and other penalties.  They demand cash through a wire transfer, prepaid debit card, or gift card.

The IRS does not initiate contact with taxpayers via phone and never calls to demand immediate payment using a specific payment method.  The IRS typically will first mail a bill to any taxpayer who owes taxes.  The IRS does not threaten to bring in law enforcement to arrest you for not paying.  The IRS cannot revoke your driver’s license, business license, or immigration status.

Identity Theft

Taxpayers need to watch out for identity theft at all times, and during tax time when some criminals file fraudulent returns using someone else’s Social Security number.

Always use security software on your computer with firewall and anti-virus protections, and use strong passwords.  Learn to recognize and avoid phishing emails, threatening phone calls, and texts from thieves posing as legitimate organizations such as a bank, credit card company, or government organization (including the IRS).

Fake Charities

There are groups masquerading as charitable organizations that solicit donations from unsuspecting contributors.  Many of these fake “charities” use names similar to familiar or nationally-known organizations.

Take a few minutes to research an organization to ensure your hard-earned money goes to legitimate charities. The IRS website has tools to check out the status of charitable organizations.

For More Information

See the article “IRS wraps up ‘Dirty Dozen’ list of tax scams for 2018; Encourages taxpayers to remain vigilant”
https://www.irs.gov/newsroom/irs-wraps-up-dirty-dozen-list-of-tax-scams-for-2018-encourages-taxpayers-to-remain-vigilant

Aaron Kirsch CFP®, Managing Director