As Tax Day Approaches, the NY AG’s Office Releases Consumer Alert About Frequent Tax Season Frauds
Some Tips provided by the A.G. to avoid Scams this tax season, he urges New Yorkers to
report any potential fraud.
New York- With tax season just around the corner, A.G. Eric T. Schneiderman, presents taxpayers with a variety of tips to aid them in avoiding tax schemes. He also insists that New Yorkers stay cautious and report any suspected schemes intended to steal financial and personal information from consumers.
Annually, the Attorney General’s office receives complaints from consumer about several tax-associated schemes. A numerous of those complaints include callers claiming to be IRS officials and attempting to collect fraudulent tax debts. These scammers often threaten with lawsuits or jail time if consumers do not agree to pay them false debts, or turn over sensitive personal information. It is advised that consumers do not engage in these types of calls or provide any of the demanded information or money.
With most cases, these scammers claim that consumers owe a certain amount of text debt, and they demand that they pay using a pre-paid gift card or credit card. They insist the use of this specific type of payment because of their difficult when trying to trace.
To avoid becoming victims of this crime victims should not pay any money or provide any information- any legitimate government agency or the IRS, will never demand immediate payment or payment information over the phone.
“Too often fraudsters use tax season as an excuse to exploit consumers,” said Attorney
General Schneiderman. “My office will not hesitate to act if New Yorker’s are being ripped off. This is why we ask consumers to remember a few helpful tips and notify my office of any fraudulent tax schemes.”
New Yorker’s can report any suspected scams to the Attorney General’s office by calling the Attorney General’s consumer hotline at 1-800- 771-7755 or the U.S. Treasury Inspector General for Tax Administration at 800-366- 4484.
Taxpayers should beware of tax preparer who electronically withdraws more than the agreed upon fee without notice to the employee; and of tax preparation businesses that advertise low fees to get the customer hooked but then change the final fee by hundreds of dollars claiming the tax return was more complicated than expected.
The Attorney General’s Office Offers the Following Additional Tips:
1. If you owe money, you will receive a legitimate notice in writing that identified the agency and the reason you owe money;
2. Do not give out personal information, including your Social Security number, bank account information, or other payment information, to telephone callers;
3. Legitimate government organization will never threaten arrest or deportation for failure to pay a debt;
4. Legitimate government agencies with never insist that consumers pay a debt only via a pre-paid credit card.
5. If you use a tax-preparation service, use only established and recognizable companies;
6. Check the tax preparation service, use only established and recognizable companies;
7. Check the tax preparer’s qualification and history through the Better Business Bureau (org);
8. Ask for a written estimate of all fees; avoid those who base their fees on a percentage of your refund;
9. Avoid tax preparers that promise cash for preparing the return, but in fact merely offer a discount on inflated fees;
10. Make sure the tax preparer is accessible, even after the April due date;
11. Never sign a blank return;
12. Review entire return before signing;
13. Make sure the preparer signs the tax form and includes a Preparer Tax Identification Number (PTIN);
14. Consult New York’s “Consumer Bill of Rights Regarding Tax Preparers.”
The Attorney General is also reminding New Yorkers that in addition to being cautious consumer, they should also report occurrences of fraud to his office. Consumers are also urged to file complaints to the Attorney General’s by completing and submitting a Consumer Bureau Online Complaint Form or calling 1-800- 771-7755.
