The tax preparer Suwanee residents depend on for accurate tax return filing is Accounting Partners. Having a tax professional you can trust is essential. Thousands of people fall victim to tax scams each year, losing millions of dollars, having their data compromised, and identities stolen.
Top Tax Scams To Know About and Avoidance Strategies
Tax scammers use postal mail, telephone, and email to target individuals, businesses, payroll, and tax professionals. It’s important to note that the IRS does not contact taxpayers via phone, email, text, or social media to request personal or financial information. Taxpayers must know how scammers pretend to be the IRS to protect themselves. Keep reading to familiarize yourself with the current tax scams victimizing taxpayers, accountants, and CPA firms and prevention strategies.
1. Say No to IRS Impersonation Telephone Scams
Beware of IRS impersonation telephone scams, which have been targeting taxpayers, including recent immigrants, across the country. Scammers make aggressive calls pretending to be IRS agents. With fake names and bogus IRS identification badge numbers to trick people into giving away their money or personal information. They often manipulate the caller ID to make it appear like the call is from the IRS. Victims are told they owe money to the IRS and are pressured to pay immediately using gift cards or wire transfers. They may also be threatened with arrest, deportation, or suspension of their business or driver’s license.
The scammers may also claim that the victims are entitled to a refund in an attempt to elicit private information. They can be hostile and insulting and typically leave an “urgent” callback request if the call is unanswered. Be cautious and stay informed to protect yourself from these scams.
Know that the IRS will not call to demand immediate payment or threaten you. These aggressive callers posing as IRS agents are out to steal your money and personal information through threats and deception. Report suspicious calls to the IRS.
2. Illegal Schemes for High-Income Filers
High-income filer scams often involve fraudulent art donation deductions, charitable remainder annuity trusts, and monetized installment sales. For high-income filers, seek professional advice from a trusted tax expert to ensure compliance with tax laws and avoid falling for illegal schemes. It’s essential to verify the legitimacy of deductions and consult with qualified advisors to navigate the complexities of the tax system.
3. Beware of Untrustworthy Tax Preparers Offering Tax Relief
It’s essential to be cautious when choosing a tax preparer. Some preparers might take your money and personal information and disappear without providing the promised services. These “ghost preparers” usually don’t sign the tax returns they prepare, which could indicate that they’re only interested in making money by promising large refunds or charging fees based on the refund amount.
Recognizing and avoiding these unethical tax return preparers is a challenge. However, ensuring your tax preparer has a valid PTIN (Preparer Tax Identification Number) and always signs your tax return is a good practice. Turn to a local Suwanee tax preparer with a long-standing history of excellence. Accounting Partners opened its doors in 1996.
4. Do Not Let Fake Charities Defraud You
Scammers often pretend to be legitimate charities to exploit people’s generosity and steal their donations. It’s essential to be aware of charity fraud. The Internal Revenue Service (IRS) has cautioned taxpayers to be cautious of individuals seeking donations and falsely claiming to represent genuine charities.
When fake charities deceive unsuspecting donors, the money collected does not reach those in need. Additionally, individuals who donate to these fraudulent charities cannot claim deductions for their contributions on their tax returns. Protect yourself from charity scams. Verify charities using the IRS’s Tax Exempt Organization Search tool before donating.
5. Say No to Paying High Fees to Settle IRS Tax Debt
Beware of companies falsely claiming that their services are required to settle IRS debt. Their television and radio ads discuss reaching settlements with the IRS for pennies on the dollar. That may sound good; however, services like this often charge exorbitant fees.
Also, be wary of claims that there is a limited time to resolve tax debts via the Offer in Compromise (OIC) program. This is a false urgency ploy OIC Mills or Offer in Compromise Mills use to pressure you. Their services are not necessary to resolve IRS debts.
The IRS does, however, have an Offer in Compromise program to settle debts. The tax accountants at Accounting Partners can help you check your eligibility. Lastly, it is best to avoid all companies offering third-party promises of debt settlement for a fraction of what you owe. Suwanee tax accounts at Accounting Partners will gladly help you if you have questions about IRS debts.
6. Beware of Employee Retention Credit Refund Scams
The IRS has cautioned businesses and tax-exempt groups to be wary of misleading promotions related to the Employee Retention Credit (ERC). These promotions, which may come in aggressive advertising, direct mail solicitations, or online promotions, often contain false or exaggerated claims about who is eligible for the credit.
While the ERC is a legitimate credit, some promoters misrepresent who can qualify for it. The IRS has issued warnings about schemes from third-party promoters that charge high upfront fees or fees based on the refund amount. These promoters often fail to disclose that wage deductions claimed on the business’s federal income tax return must be reduced by the amount of the credit.
It is essential for businesses, tax-exempt organizations, and other eligible entities to carefully review the official requirements for this credit before claiming it. Additionally, the IRS has warned taxpayers about new scams that encourage using false wage information on tax returns to claim fabricated credits in the hope of receiving a substantial refund.
Consult IRS guidelines and verify claims with a trusted advisor to ensure you meet the criteria for tax credits.
7. Refuse False Fuel Tax Credit Claims
The IRS is cautioning taxpayers to be wary of scams related to the Fuel Tax Credit, the Sick and Family Leave Credit, and household employment taxes. The IRS has observed numerous questionable claims, with taxpayers seeking credits to which they are not entitled. This has resulted in delayed refunds and the requirement for taxpayers to provide legitimate documentation to substantiate their claims.
Scammers promote false claims for the Fuel Tax Credit to obtain undeserved refunds. Avoid being victimized by this scam by only claiming eligible credits and consulting a tax professional to ensure compliance.
8. Pass By Pandemic-Related Email Scams
Please be mindful of phishing scams that use pandemic-related themes to steal personal and client data. The IRS, state tax agencies, and the tax industry have cautioned tax professionals about evolving phishing scams that capitalize on pandemic-related topics to steal client data. Be vigilant and report suspicious emails to the IRS and other relevant authorities.
9. Unclaimed Refund Mail is Fake
Attention taxpayers: Beware of a new scam mailing regarding unclaimed refunds. The IRS is cautioning people about a recent scam that attempts to deceive individuals into thinking they are entitled to a refund. This new scheme sends a cardboard envelope through a delivery service. Inside the envelope is a letter with the IRS masthead, contact information, a non-IRS phone number, and wording that the notice pertains to “your unclaimed refund.” Be vigilant to avoid falling victim to this fraudulent tactic.
10. Avoid Demands to Pay Taxes Now or Else Callers
Note that the IRS will never demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. The IRS will typically send you a bill if you owe any taxes. They will never threaten to involve local police or law enforcement to have you arrested for not paying. Furthermore, they will not demand payment without allowing you to question or appeal the amount they say you owe, and they will never ask for credit card, bank account, or debit card numbers over the phone.
11. Scammers Steal Identities for Unemployment Benefits
Criminals steal identities to file fraudulent unemployment claims. The IRS cautions taxpayers to stay alert for identity thieves attempting to falsely steal personal information to claim unemployment benefits. Since unemployment benefits are taxable, states issue Forms 1099-G, Certain Government Payments, to report the taxable compensation and any withholding received by both recipients and the IRS.
Receiving an unexpected 1099-G is an obvious red flag indicating you may be a scam victim. Box 1 on the form shows Unemployment Compensation. If you did not receive or even file for unemployment benefits, the IRS recommends referring to the instructions outlined in the “Identity Theft and Unemployment Benefits” guidelines. Taxpayers who receive a Form 1099-G for unemployment compensation they did not receive may be identity theft victims.
12. Do Not Fall for Bogus Tax Avoidance Strategies
These schemes involve complex international setups to evade taxes. Do not fall victim. Always consult a reputable tax professional and report suspicious schemes to the IRS.
13. Filing Fake Form W-2 Wages
Tax criminals may urge people to use false wage information to claim credits and obtain large refunds. Always use accurate wage information and avoid false claims on your tax return.
14. Fend Off Spearphishing Attacks
Scammers target tax professionals and businesses through email to steal sensitive information. Use strong cybersecurity measures, verify client identities, and avoid unsolicited emails.
15. Avoid Social Media Tax Advice
Inaccurate or misleading tax advice is trending and spreading on social media platforms. To counteract the spread of inaccurate tax advice on social media, relying on official IRS resources and professional tax advisors is essential. By seeking accurate information, you can make informed decisions about your taxes.
16. Scammers Setting Up Online IRS Accounts
Fraudsters offering to set up IRS Online Accounts for taxpayers often steal personal information. Use the official IRS website to set up your account and avoid third-party offers.
Special Tax Scam Warnings for Vulnerable Groups
Targeted Seniors and Older Adults
The IRS is cautioning taxpayers to be aware of scams that target older adults. Scammers pretending to be government officials are trying to steal sensitive personal information and money. These fraudsters pose as representatives from agencies like the IRS or other government agencies and use fear and deception to exploit their victims. Tax scams result in exaggerated refund claims. Protect your assets by verifying the identity of any supposed government representative before providing information.
Taking Advantage of Hearing Impairment
Taxpayers must be cautious during tax season as it is a prime time for phone scams. Some dishonest individuals have used video relay services (VRS) to target deaf and hard-of-hearing individuals. Taxpayers should not automatically trust calls made through VRS, as interpreters do not verify the validity of the calls.
Limited English Speakers
Individuals with limited English proficiency are often targeted in their native language. They are faced with threats of deportation, police arrest, license revocation, and other consequences. The IRS advises all taxpayers to be careful before making unexpected tax payments.
College and University Staff and Students
Be aware of an ongoing IRS impersonation scam targeting educational institutions, including students and staff with “.edu” email addresses. University students and staff need to stay alert and be cautious about any emails claiming to be from the IRS, as this could be an attempt at identity theft or a scam related to unemployment benefits. Generally, be wary of unexpected IRS communications and verify their legitimacy before releasing personal data.
After Natural Disasters, Fake Charities Hit Donors
Scammers exploit taxpayer generosity post-disaster by posing as legitimate charities. You can verify the legitimacy of charities and relief efforts before donating. Following a natural disaster, the IRS wants to remind taxpayers that some individuals may try to exploit people’s generosity by committing fraud and scams. To help taxpayers avoid falling victim to these scams, it’s essential to be cautious when donating after a disaster.
How Accounting Partners Services Can Help Suwanee Taxpayers
Accounting Partners provides Suwanee individuals and businesses with various dependable and professional accounting and tax services, including tax preparation, corporate advisory services, tax planning, and taxation reduction strategies. In addition, we offer accounting, cash flow planning, bookkeeping, and QuickBooks services for your small business. Our team also provides business advisory services, Quickbooks training and installation services, startup business services, and small business growth strategies and planning.
Here’s a detailed breakdown of how we can assist you:
- Accurate Tax Return Filing: Accounting Partners is the tax prepayer in Suwanee, which takes the time and effort to ensure your taxes are filed accurately and on time. This meticulous approach minimizes errors, reduces the likelihood of potential audits, and gives you the peace of mind that your tax filing is safe.
- Scam Prevention: At Accounting Partners, we believe in empowering our clients. We inform you about the latest tax scams, equipping you with the knowledge to recognize and avoid them. This proactive approach protects your personal and financial information and gives you the confidence to navigate the tax landscape without fear of falling victim to fraudulent schemes. Check out our newsletter.
- Expert Advice: Our Suwanee tax preparer and tax planning team, with years of experience and extensive knowledge of tax laws, provides personalized guidance on legal tax deductions and credits, ensuring that you optimize your tax savings. This tailored approach helps you navigate the complex tax system and maximize the benefits available to you.
- Compliance: Accounting Partners ensures that your tax filing complies with all IRS regulations. You can avoid penalties and legal complications when handling your tax matters correctly.
- QuickBooks: Our QuickBooks experts use the robust platform to provide clients with both financial clarity and security. We use QuickBooks to keep accurate records, identify fraud, stay tax-compliant, and educate clients about potential scams. QuickBooks is financial software can play a critical role in protecting our clients from tax-related fraud and scams. In addition, QuickBooks ensures smooth tax filing.
Contact us to discuss how our accounting services can help you. For a free consultation with a qualified accountant from Accounting Partners, call 678-990-0924.
