New versions of well-known tax-related scams appear every year…and 2019 is no different. No matter what time of year, taxpayers should be on the lookout for scams. Here are some things taxpayers should remember to help them spot scams and avoid becoming a victim.
https://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.png00Nathanhttps://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.pngNathan2019-07-03 15:29:162019-10-14 18:22:11Tips to help taxpayers recognize tax scams
With scam artists hard at work all year, taxpayers should be on the lookout for a surge of evolving phishing emails and telephone scams.
Taxpayers should watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency.
https://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.png00Nathanhttps://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.pngNathan2019-07-02 17:02:122019-10-14 18:23:02Taxpayers should be on the lookout for new versions of these two scams
The tax filing season is a busy time for taxpayers, but scammers also stay busy. Taxpayers should be aware of several types of tax scams, but phone scams start to increase during the beginning of tax season and then remain active throughout the remainder of the year. Here’s how this scam generally works:
Scammers impersonating the IRS call taxpayers telling them they owe taxes and face arrest if they don’t pay.
The scammer may leave a message asking taxpayers to call back to clear up a tax matter or face arrest.
When taxpayers call back, the scammers often use threatening and hostile language.
The thief demands that the taxpayers pay their tax debts with a gift card, other pre-paid cards or a wire transfer.
*This message was distributed by IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.
https://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.png00Nathanhttps://www.taxwaresystems.com/wp-content/uploads/2018/04/tw_logo_website.pngNathan2019-03-21 13:36:072019-03-21 20:39:22Phony IRS calls increase during filing season
Padding deductions and credits is part of this year’s “Dirty Dozen” list of common tax scams. Taxpayers may encounter these schemes any time, but many of them peak during the tax filing season as people prepare their tax returns or hire others to help with their taxes.
The IRS reminds taxpayers that they are still personally at risk, even if someone suggests using these strategies or a paid tax preparer actually prepares their return. By the time the IRS contacts the taxpayer about these problems, the promoter or preparer is often long gone.
Avoids scams, file an accurate return
Preparing an accurate tax return is a taxpayer’s best defense against scams – and the best way to avoid triggering an audit. Significant penalties may apply to those who file incorrect returns including:
20 percent of the disallowed amount for filing an erroneous claim for a refund or credit.
$5,000 if the IRS determines a taxpayer has filed a “frivolous tax return.” This is a return that does not include enough information to figure the correct tax or that contains information clearly showing that the tax reported is substantially incorrect.
In addition to the full amount of tax owed, a taxpayer could be assessed a penalty of 75 percent of the amount owed if the underpayment on the tax return resulted from tax fraud.
Taxpayers may be subject to criminal prosecution and be brought to trial for actions such as willful failure to file a return; supply information; or pay any tax due; fraud and false statements; preparing and filing a fraudulent return and identity theft.
One way for taxpayers to ensure they file an accurate tax return and claim only the tax benefits they’re eligible to receive is by using tax preparation software. Question and answer formats lead taxpayers through each section of the tax return.
Taxpayers should also remember they can prepare and e-file federal taxes free with IRS Free File. Taxpayers with income of $66,000 or less can file using free brand-name tax software. Those who earned more can use Free File Fillable Forms, the electronic version of IRS paper forms. Either way, everyone has a free e-file option. The only way to access Free File is on IRS.gov.
Community-based volunteers around the country also provide free face-to-face tax assistance to qualifying taxpayers. Volunteers help taxpayers file taxes correctly, claiming only the credits and deductions they’re entitled to by law.
Remember, taxpayers are legally responsible for what is on their tax return, even if it is prepared by someone else.
www.irs.gov/chooseataxpro has additional information to help taxpayers including tips on choosing a preparer, the differences in credentials and qualifications, as well as how to submit a complaint regarding an unscrupulous tax return preparer.