MEMPHIS, Tenn. — We’re less than a week away from the tax filing deadline on Monday, April 15. While many people may be in a hurry to file and get a refund, there’s an important warning about how to avoid getting ripped off during the rush.
The News Channel 3 Investigators had a chance to sit down with Internal Revenue Service Commissioner Danny Werfel who told us this time of year is ripe for crooks looking to con taxpayers.
“This is when bad actors come out of the woodwork in droves and they make promises of fake tax benefits and they make threats,” explained Werfel.
There are, however, some warning signs to look for when trying to spot a tax scam. The IRS recently released its Dirty Dozen for 2024, an annual list of, what it calls, the “worst of the worst” tax scams.
The list includes:
- Spearphishing attacks
- Fake charities
- False fuel tax credit claims
- Scammers offering to set up an online account
- Promoters pushing questionable Employee Retention Credit Claims
Another scam that made this year’s IRS Dirty Dozen is a warning to stay away from ghost preparers. These are those that set up shop, then disappear, sometimes with part of your tax refund.
Keep in mind, taxpayers can file for free online and get free tax help at dozens of places across the MidSouth. There’s also a new program Tennesseans can take advantage of called Direct File.
The IRS is also reminding taxpayers to watch out for bad tax advice on social media. The agency says it’s seeing hashtags and posts with fraudulent information about W2s and Hardship Waivers.
There are also phishing and smishing scams which come in the form of bogus emails and texts.
Here are three things the IRS says it will never do:
“The IRS won’t contact you out of the blue and demand immediate payment. Second, the IRS won’t contact you out of the blue and threaten immediate legal action like bringing in local police. And third, the IRS doesn’t demand payment in a specific way,” explained Werfel.
In fact, the IRS will always send correspondence by mail first.
Another big scam making the rounds is the promise to wipe away tax debt, or what the IRS calls Offer in Compromise mills.
Werfel says it’s important to keep in mind that taxpayers can set up installment agreements on their own. There’s also a tool that allows users to determine if they pre-qualify for an Offer in Compromise.
