Don't fall victim to tax scams. These schemes take several
shapes, ranging from promises of large tax refunds to
illegal ways of "un-taxing" yourself.
The IRS suggests that you remember three important
guidelines:
1. You are responsible and liable for the content of your
tax return.
2. Anyone who promises you a bigger refund without knowing
your tax situation could be misleading you.
3. Never sign a tax return without looking it over to make
sure it is accurate.
Beware of these common schemes:
Return Preparer Fraud
Dishonest tax return preparers can cause many headaches
for taxpayers who fall victim to their ploys. Such
preparers derive financial gain by skimming a portion of
their clients' refunds and charging inflated fees for
return preparation services.
They attract new clients
by promising large refunds. Choose carefully when hiring a
tax preparer. As the saying goes, if it sounds too good to
be true, it probably is. No matter who prepares your tax
return you are ultimately responsible for its accuracy and
for any tax bill that may arise due to a questionable
claim.
Identity Theft
It pays to be choosy when it comes to disclosing personal
information. Identity thieves have used stolen personal
data to access financial accounts, run up charges on
credit cards and apply for new loans. The IRS is aware of
several identity theft scams involving taxes or scammers
posing as the IRS itself. The IRS does not use e-mail to
contact taxpayers about issues related to their accounts.
If you have any doubt whether a contact from the IRS is
authentic call 800-829-1040 to confirm it.
Frivolous Arguments
Promoters have been known to make outlandish claims that
the Sixteenth Amendment concerning congressional power to
establish and collect income taxes was never ratified;
that wages are not income; that filing a return and paying
taxes are merely voluntary; and that being required to
file Form 1040 violates the Fifth Amendment right against
self-incrimination or the Fourth Amendment right to
privacy. Don't believe these or other similar claims. Such
arguments are false and have been thrown out of court.
Taxpayers have the right to contest their tax liabilities
in court, but no one has the right to disobey the law.
Rebate Phone Call
At least one scheme using the word "rebate" as part
of the lure has been identified. In that scam, consumers
receive a phone call from someone identifying himself as
an IRS employee. The caller tells the targeted victim that
he is eligible for a sizable rebate for filing his taxes
early. The caller then states that he needs the target's
bank account information for the direct deposit of the
rebate. If the target refuses, he is told that he cannot
receive the rebate. This phone call is a scam. No
legislation has yet been enacted that would allow the IRS
to provide advance payments to taxpayers or that
determines he details of those payments.
Moreover, the IRS does not force taxpayers to use direct
deposit. Those who opt for direct deposit do so by
completing the appropriate section of their tax return,
with bank routing and account information, when they file;
the IRS does not gather the information by telephone.
Refund E-Mail
The IRS has seen several variations of a refund-related
bogus e-mail which falsely claims to come from the IRS,
tells the recipient that he or she is eligible for a tax
refund for a specific amount, and instructs the recipient
to click on a link in the e-mail to access a refund claim
form. The form asks the recipient to enter personal
information that the 'scamsters' can then use to access
the e-mail recipient's bank or credit card account.
In a new wrinkle, the current version of the refund scam
includes two paragraphs that appear to be directed toward
tax-exempt organizations that distribute funds to other
organizations or individuals. The e-mail contains the name
and supposed signature of the Director of the IRS's Exempt
Organizations business division.
This e-mail is a phony. The IRS does not send unsolicited
e-mail about tax account matters to individual, business,
tax-exempt or other taxpayers.
What to Do
If you have received a questionable e-mail or phone call
claiming to come from the IRS please forward it to
phishing@irs.gov, using instructions contained in an
article on IRS.gov titled "How to Protect Yourself from
Suspicious E-Mails or Phishing Schemes." Following the
instructions will help the IRS track the suspicious e-mail
to its origins and shut down the scam.
For more information about these and other tax scams
visit the IRS Web site at
www.IRS.gov.
During
this same time my dear friend Erik was losing his six
year battle with lung cancer. I found myself searching
for a way to honor him, his wife and his two adult
children. What could I do?
