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Three common tax scams

On Behalf of | Dec 11, 2021 | Uncategorized |

Many taxpayers in Dallas/Fort-worth don’t want to get in trouble with the IRS, so scammers take advantage. While scams can occur all year, they are more frequent during holidays and tax time. The IRS has a list of the “Dirty Dozen” top scams taxpayers should know about and avoid.

Tax relief scams

Some scammer takes advantage of desperate taxpayers in debt with the IRS and use deceptive tactics to lure them. They know some taxpayers are willing to pay for services to get debt relief and charge excessive fees, but they never deliver.

They may run ads that boast about their credentials and post outcomes and testimonies claiming to be from real clients. However, the IRS has installment options for taxpayers who owe $50,000 or less and may qualify for an offer in compromise.

IRS imposter phishing scam

A scammer may call, email, or text to a person pretending to be an employee from a legitimate company demanding immediate payment. The scammer will claim the taxpayer owes money, and they try to “phish” their social security numbers and financial information.

They often include a link the person believes is from the IRS, but it only goes to the scammer’s website. The IRs commonly does not ask for financial information over the phone or ask for immediate payments.

Fake tax preparer scams

A phony tax preparer often claims they are helping the taxpayer get a bigger refund through numerous deductions and credits. Their service not only costs more to use, but puts the filer at risk of getting an IRS audit and/or being fined.

A legitimate tax service will not charge fees based on a percentage of tax refunds, which is against tax law. They will not make unrealistic promises regarding returns or require clients to pay upfront in cash.

A taxpayer should never ignore audits or communication from the IRS, which only makes matters worse. If they feel they have been scammed, they can file a complaint with the IRS.