Expert advice to protect yourself from tax scams
The IRS will never call you and demand immediate payment
(InvestigateTV) — The Better Business Bureau (BBB) reports that tax scammers regularly update their cons in an effort to trick more people out of their money.
Melanie McGovern with the BBB shared the most common tax schemes to avoid:
IRS imposter scams: “We know the IRS doesn’t call people and demand payment over the phone. If you do owe money to the IRS, you’re going to get a series of letters, you’re going to get a unique tax ID number,” McGovern explained. “Unfortunately, we have seen people pay the fake IRS over the phone, go and get gift cards and pay the IRS with the gift cards. The government doesn’t take gift cards as a payment.”
Tax preparation scams: “The biggest thing that people need to remember when they’re looking for a tax preparer online is you are giving this person your financial data, your bank account, your Social Security number,” McGovern warned. ‘So, the biggest thing you want to take into consideration is who is this person? How do I know they’re legitimate?”
McGovern said one way to verify a tax preparer is legitimate is to meet them in person.
Radio and TV commercials claiming to solve tax problems: “Anybody with means can buy advertising. Just because it’s on TV and it’s advertised everywhere, do that homework, do that research. Look up the company on BBB.org,” McGovern recommended. “There should be other companies that do the same thing. We always tell people in any type of situation, get three bids. It’s always good to look at three different companies and just make your choice from there. Cause you want to make sure you’re not getting overcharged, that they’re going to make sure you get your charges filed for you on time and correctly.”
The BBB has a guide on how to “Protect yourself from tax scams.”
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