RALEIGH — 155 million people are expected to file tax returns this year, according to the Internal Revenue Service. It’s often a stressful time, but with an increase in identity theft, many people are really feeling the pressure.
The Better Business Bureau of Eastern North Carolina says their scam tracker reporter more than 47,000 scams last year, with IRS and tax collection scams at the top of the list. They offer tips on common tax scams that we should all be aware of.
Common Tax Scams to Be Aware of:
Impostor Scams. Scammers pose as IRS agents and instill fear in victims by demanding money or threatening jail time. Fraudsters will spoof phone numbers so that the call appears to be coming from the IRS or local law enforcement. There’s been some cases where cons obtain a victim’s personal information, adding credence to the demand for money.
Tax Relief Scams. Watch for deceptive advertisements claiming to greatly reduce a person’s tax liability. Scammers will use official looking IRS notices or websites to sway people into paying unnecessary money or divulging private and personal information.
ID theft. Scammers use stolen personal information, social security numbers and falsified W-2 information to file fraudulent tax returns in the victim’s name. In some cases, thieves stole W-2’s out of unsecured mailboxes.
**Information provided by the BBB of Eastern N.C.
Many people are also now scrambling to get their returns ready for the April deadline. The BBB of Eastern NC offers these tips on how to safely fire a return.
BBB offers consumers the following tips for filing taxes:
File your tax return early. Do it before any scammer can file posing as you and take your return.
Ask for referrals. Start by asking your friends and family who they use to prepare their taxes. Then go to bbb.org to learn more about the business and to read past customer reviews.
Check credentials. Check the preparer’s credentials and insure they meets your specific needs. Whether they claim to be an accountant, CPA or enrolled tax agent, all tax preparers are required to obtain a PTIN from the IRS.
Beware of guarantees. Be wary of anyone promising you larger refunds than the competition, and avoid tax preparers who base their fee on a percentage of the refund.
Consider Accessibility. Many tax preparation services only set up shop for the months leading up to April 17. In case the IRS finds errors, or in case of an audit, make sure you are able to contact your tax preparer at any time of the year.
**Information provided by the BBB of Eastern N.C.