Tax Defense Network: Tax Scam Protection

 

Free money attracts everyone, but there are some who go to extremes to get free money. Some tax scammers con taxpayers by altering numbers on their tax returns and forging documents to collect a tax refund. Some others cheat taxpayers, disguising themselves as tax professionals. During tax season, most taxpayers can expect to encounter at least one scam attempt. Tax Defense Network publishes this list of tax scams that affects thousands of American taxpayers every year.

Tax Defense Network: Tax Preparer Scam

Most people hire tax preparers to file their taxes. It is essential for them to know that their tax preparer must have a PTIN (Preparer Tax Identification Number) assigned by the IRS. A tax preparer must include their PTIN on every tax return they prepare, so make sure to check and record the PTIN of your tax preparer in case of fraud. This identification number helps track the return back to the tax preparer to decrease chances of fraudulent filing.

Tax Defense Network: Tax Relief Scam

Many times, it is a tax professional that scams the IRS out of legitimate tax refunds. Many reputed tax relief companies, namely TaxMasters, Roni Deutch, American Tax Relief and J.K. Harris, were discovered to be running tax scams under the pretense of honest tax relief.

Taxpayers believed their attractive tax debt reduction offers, which led many taxpayers into paying their exaggerated fees. Scam tax companies charged high upfront fees and hidden fees, and practiced deceptive billing to get even more money out of their clients.

Tax Defense Network: Charity Organizations/Trusts Scam

Charity organizations are tax-exempt, so many tax scammers hide under the blanket of charity foundations to trick taxpayers. In many cases, donors conspire with fake charitable organizations to reduce their taxes. They take money and non-cash items as donations. To make them look authentic, these scammers even give you a receipt for the donation made.

Tax Defense Network: Identity Theft Scam

Stealing the personal details of taxpayers and filing fake returns on their behalf is the most common way tax scammers rip-off taxpayers. They use phishing tactics to steal the information required to file a tax return. By using fake websites and sending fake emails that pretend to be from the IRS or a bank, scam artists extract sensitive information from taxpayers. Taxpayers may report phishing attempts at phishing@irs.gov.

Tax Defense Network: Social Security Scam

Many scam artists target only the elderly, giving them false tax advice with the intention of reporting inflated Social Security benefits. They claim large refunds by claiming numerous withholdings.

With all of the tax scams explained above, taxpayers end up being the ones in trouble with the IRS. Tax Defense Network warns against possible scam attacks during this tax season. We advise taxpayers to equip themselves with accurate information and stay cautious when revealing sensitive information to avoid possible scams.

From the Author: Tax Resolution Legal Tea

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