Tax time is winding down and we should all be on the lookout for the “Dirty Dozen” tax scams as outlined by the Internal Revenue Service.
Most of them deal with some sort of identity theft. The IRS has made the detection and prevention of fraud resulting from identity theft a top priority.
If someone feels that they have had their identity stolen it is recommended that they immediately contact the agency so that they can take action to secure their tax account.
One of the top methods for stealing an identity is called Phishing. No we’re not talking about the popular jam band, Phish, but rather the method by which the unsuspecting victim is lured into giving out personal information through unsolicited emails or links to a fake website.
The offers generally offer some sort of tax relief, refund or such with the proviso that the victim share things like social security numbers or bank and other financial information all of which can be used by the perpetrators to cause financial ruin.
Be advised that the IRS does not use email to contact taxpayers to solicit electronic information. If you are contacted in such a way, send the request to phishing@irs.gov. If the IRS needs to contact you they will generally do so by regular mail so that you may respond either by mail or telephone at which time your identity will be authenticated.
I had a client last tax season who was alerted to the illegal use of her husband’s SSN when the couple received a letter from the IRS telling them that the rather sizeable refund that they were due was being held for further investigation.
Problem was that the couple had completed their return just a few days prior and actually owed money.
We contacted the IRS and were transferred to the Fraud Investigation Division where we found out that a group of steps needed to be taken to resolve the problem.
First, a new, clean paper return had to be submitted along with the identity theft form along with copies of the couple’s drivers’ licenses and Social Security cards.
One thing that made this easy was the fact that they owed tax. My guess is that if they would have been due a refund, it would have taken months for that refund to be mailed to them.
Beware of “free” money or purported Social Security windfalls. The perpetrators of these types of scams prey on the elderly, the churchgoing and low income individuals. A lot of low income or elderly folks don’t have to file returns so there are a lot of unused SSNs available to the enterprising perps. The only time I can remember people with only Social Security income having to file a return when they didn’t have to was during the big stimulus craze several years ago.
Generally if it sounds too good to be true it is.
There are other forms of fraud afoot but they generally fall in specialized areas. The items I mentioned above are the kind of things that almost any individual can fall a victim to.
Most of us don’t have offshore accounts or shell corporations fronting for us to hide income.
Despite the best efforts by enforcement organizations somebody always comes up with a new way to separate the normal citizen from their money. Be alert and be careful.
Now I’ve got to answer this fascinating email I just received from a Nigerian prince.
Jim Robertson is a longtime Harrison resident, a member of Harrison City Council, and a weekly columnist for The Harrison Press.