The Internal Revenue Service's Criminal Investigation division plans to cast a spotlight on tax scams and fake charities during a public service campaign next week.
The effort will be part of National Consumer Protection Week, an effort spearheaded by the Federal Trade Commission that brings together public and private sector organizations to educate and protect people from frauds, scams and other threats. During the week of March 5-11, IRS-CI will post information on its
"Our investigators see myriad scams each year," said IRS-CI Chief Jim Lee in a statement Wednesday. "These range from phishing attempts where unsuspecting individuals are prompted to share their personal information to fraudsters who prey on our elderly citizens' vulnerabilities. Offers that promise instant wealth or unrealistic tax exemptions are empty promises. Slam the next scam and report to law enforcement."
Phishing scams are still prevalent, the agency noted, and if consumers receive an unsolicited email, they shouldn't enter their personal information or click links. Scammers have grown much more sophisticated, and emails and texts may appear legitimate. Seniors in particular should be on the offensive, as criminals often target senior citizens via predatory phone calls and emails, along with phishing attempts.
Charity fraud is also common and occurs when an organization falsely claims to be a nonprofit organization or it misappropriates funds intended for a charity. Before making a contribution, donors should ensure an organization is legitimate and verify the organization's tax-exempt status before donating goods, services or money.
Fraudsters prey on taxpayers who may owe a debt to the IRS. Consumers should beware of advertisers who say they can settle their tax debt for pennies on the dollar. If they have a debt to the IRS, they can reach out to the IRS directly to determine their options.
IRS-CI also noted that it's tax season, which can also also be the season for return preparer fraud. The agency advises consumers to research their tax preparer and choose wisely since taxpayers are ultimately responsible for their tax bill.
