How Can I Avoid Tax Scams
Scams are Here to Stay. Watch Out for the IRS Dirty Dozen!
Tax Answers Transcript:
Marcelino: Welcome to The Tax Answers Advisor. I am Marcelino Dodge, on my 15th show and building real exciting to have listeners around the world, this podcast not just here in the US, but we certainly thank everyone in China and France and other parts of the world for tuning in and getting this valuable information to help them on their US tax return. And you can always reach me very easily at Cash Tracks Financial or email at firstname.lastname@example.org, or give me a call 844-494-4287.
And then of course, you can visit us on Cash Tracks Financial on Facebook. Well, we got a few updates going into the week, some things that just some additional understanding from the IRS just to give one some updated information like for example, part of the latest stimulus bill we didn’t touch on before but this is just a something to help out those who normally claim the earned income tax credit or the additional child tax credits.
These are refundable helps increase your refunds due to income changes for the year, they can actually use 2019 income to calculate those, we’re still waiting for some further guidance exactly how that’s going to be done. But that’s going to be interesting to see how tax returns are when we finally do start filing. And speaking of filing, we do not have a start date yet for the 2021 filing season as of the date this podcast is broadcasting.
So we’re going to kind of look forward to that. And as soon as that comes available, we could mention that as early as next week. Also Economic Impact Payments that we’ve had two of those go out, they are in advanced what’s known as the recovery rebate credit. Now if you receive the full amount of these payments, as guidance just recently came out, those amounts are not included on your tax return. Now they made a adjustment in there.
So that you only need to put an amount is if you did not receive the full amount, which basically means if you had a reduced amount that you didn’t receive, like the first payment, say you only received 700 of the schedule 1,200. Well, you got to put on the tax return the 700 there and then if you qualify based on your 2020 income for the other $500, you’ll get that extra $500. Here’s another exciting note from the IRS this week.
All taxpayers are eligible to request and identity theft protection pin. Basically, what this does is that you can lock your tax return with a six-digit code, you go to the IRS website, there’s a special place you go to do that. And what you do is you put in various identifying information, and a six-digit code is issued to you. Which then basically what that means, is that when you go to file your tax return, you have to have that six-digit code in order to file that basically, prevents ones from filing a fraudulent tax return on your behalf. And collecting refunds, which is going to be part of our topic a little bit later. As we look out for the IRS Dirty Dozen as this title his program is, “Watch out for this IRS Dirty Dozen!”
And this ID theft pin program is a way that the IRS is helping ones to combat that now, it’s voluntary. Taxpayers can sign up for this it’s no cost to protect your identity with the IRS. Now some and I have a few clients like this, who have actually had one of these ID theft pins for years because their identity had been stolen. They get these letters in the mail every year from the IRS with their PIN code.
If you already are getting that pin code, essentially there’s no change for you. It’s all just your business as usual. But if you want to go ahead and get that pin to lock up your tax return to protect you a little bit even more, you can certainly do so by visiting the IRS website. Just want to give you a quick reminder here of all the services or at least what our special solutions are here at Cash Tracks Financial.
Yes, a process where we want to get you the most from your business and financial life we help you to define a strategy to achieve your goals. We do these through steps and action plans take care of your tax and accounting are just a part of it. We do just not just your tax return here, but we offer a year around service to provide proactive solutions. As well as access when you’re part of our solutions management program.
You get access to me, Marcelino Dodge throughout the year without any additional cost to help you through financial matters and your tax matters. And it dealing with most IRS notices. Our topic about the IRS is dirty dozen. This is a list that the IRS publishes every year. We have the list that was published in 2020, which is what we’re going to review today. And this is a list that is to warn taxpayers of scams, and problems, challenges, things that what people do criminals to try to get your money.
Now we bring this up at this point because we’re just at the threshold of tax season beginning, and scammers what they go to look for, they look for easy prey. They’re just like the animals like lions out in out in Africa that don’t go after the strong ones, they go after the weak ones for their prey. Well, that’s what scammers do. They look for those and they can easily target. And by having this list and even by broadcasting this right now, what we’re doing is helping ones raise awareness of these various scams because tax season, just around the corner.
People are going to be out there and I get these emails periodically through tax season of trying to get phishing information from me about saying, here’s my tax information, here’s the link to get it. Please do my tax returns like, wait a minute, I don’t know you. So that’s why we do not click on any links from taxpayers because we don’t know who it is most of the time thus, we protect all of our taxpayers data and so as these criminals seek personal information the Internal Revenue Service does pursue this individuals and so we’re helping you to be aware that they are out there.
They’re trying to get you by either online means or the phone so basically as we go through this we’re going to encourage you not to speak to these individuals as they call, or as they visit you online or on the phone. Those are the two most common methods that they use. So let’s start looking at some of these scams now, and see exactly what this dirty dozen is and how you can protect yourself. The Dirty Dozen starts with one, phishing. Yes, these are phishing just like it’s spelled differently than going fishing in a lake.
It’s a p-h-i-s-h-i-n-g, but basically it’s the same principle as you cast out a line to try to hook your fish whatever you’d like to fish for trout, catfish, whatever. We see that scammers will cast out a lie often using fake emails or fake websites to try to get you to release personal information to them. Now, they will send out information with that could appear to be from the IRS, could look maybe from the US government.
But, the big clue is that that this is a fishing expedition is that the IRS does not initiate contact through email for tax bills. That right there is your red flag. If you get some type of email demanding you make a payment to the IRS. No that is not from the IRS. The IRS does not contact you in that manner or initiate any contact through email. You’re also encouraged when you get these emails. They often ask some type of link, a link back and either download something onto your computer or take you to some type of fake website.
When you get this information through these fishing expeditions, be it come through email, could even come through text messages to your cell phones now, and are other links. They’re using a lot of key words that can draw your attention because once again, they’re trying to reel you in and get some of that information. Keep in mind, they’re using keywords that are really common today like Coronavirus, COVID-19, stimulus or stimulus payments.
All of these are efforts by them to try to reel you in to get your information. You just want to delete the email, delete the text message and move on. Don’t let those phishing expeditions find you. Another challenge or another one on the list. The second one is fake charities. Yes, natural disasters like, we’ve seen some of the hurricanes, the fires that have gone on around the country, criminals will often exploit these they’re exploiting also the Covid-19 pandemic as well, to try to get you to give them personal information to give them money.
These often start with some type of unsolicited telephone message, a text message, perhaps a contact through social media, email, or perhaps even in person. And what is really sad is that they will set up websites, they will have names that appear to be legitimate charities or even maybe look like a legitimate charities, because they want to trick you, they want to get your personal information in.
But, you don’t want to give them any of your personal information of course, sometimes in this fake charity, they’ll even claim to work in behalf of the IRS. So, that’s where you always got to look at the website. I always encourage ones if you get an email, you got to go up and hover over, wherever the sender was to really get an idea of where that email came from, what the source of that email is.
And if it doesn’t have irs.gov there, you know, it’s not from the IRS. But also know, once again, the IRS does not communicate through emails. Another way to visit with a legitimate charity, if you want to confirm it, is to think about the employer identification number or the EIN. Because if it’s a legitimate charity that you’re working with, they will provide that EIN to you. So that you will be able to verify that they’re with the IRS.
And of course, there is a search tool if you want to find legitimate charities or charities that you really would like to donate to, you can go to IRS.gov. And look up legitimate charities that you can provide a donation to. And it’s vital that you do that not only just for your own protection in making sure you’re giving to a legitimate charity, but as well as in knowing that you’ll be able to deduct that donation.
Because you got the $300 above the line deduction for individual that has now been up to $600 for married filing joint couples. So to do that deduction, you need to make sure you use that search tool and have a legitimate charity. And charities too, if you want him to deduct that, you got to keep in mind that if you make a single donation in a single day of $250 or more, you need to have an acknowledgement letter from that charity.
And if they’re hesitating or saying they don’t want to provide that or come up with some other lame excuse, you know, that that is not a legitimate charity. And then you know that you do not want to even take a chance with them. The third of this IRS, Dirty Dozen deals with threatening impersonator on a phone call with you. I’ve had clients get such calls. I’ve had some of these calls come in myself, I believe even my assistant has gotten one of these calls.
These people call, they just get mean. And that is awful that they would even do that. They claim to be with the IRS. Which the IRS does not initiate calls or like that, or they don’t even threaten like that. They attempt to install fear, a sense of fear and urgency demanding, you got to make that payment like right now or we’re going to send the police over there the sheriff, you’re going to be arrested. Well, the IRS never makes the threat of such for immediate pain. They never do that. And so, they’ll call they’ll make a phone call to you. And this is voice phishing as well, that is a major threat. So you have to be very, very careful, extremely careful there because the IRS just does not do that. I mean, you get several, several letters before you even get a visit.
And then the only time you know that as you have a gentleman or gentlemen or woman with a badge and a gun from the IRS, then you know you’re in trouble. And they identify themselves clearly. But the IRS does not make threatening calls. Yes, sometimes on these calls, they will threaten arrest, deportation, revocation of your driver’s license. And so they’re very, they’re very aggressive. And the IRS does not do that.
I have spoken to the IRS on client’s behalf on so many occasions. And at least the individual, all the individuals who I’ve dealt with have been very professional, and very helpful. Everyone that I have. So that’s what we got to keep in mind. If you get a threatening call, basically just hang up on him. Because that person is not with the IRS. So there’s no need to pay a bogus tax bill, especially if you’ve done business with us over the years.
Where you come into our office, or you, we start doing our business virtually with uploads of tax documents and so on. You know, you’ll have a tax bill and you can always call and visit with me about that when you’re on our program. So that you don’t have to worry about these threatening calls. If someone calls threatening. You have immediate access to me, as your tax person to know. Yeah, you know, no, you don’t know that tax bill.
So just don’t worry about that. Let it go. And I’ve had to actually tell a lot of clients that because we know what their tax situation is. We’re going to go ahead and come back, we’ve cover three of 12 Dirty Dozen. We’re going to continue on in just a couple of minutes when we return to discuss more. This is The Tax Answers Advisor with Marcelino Dodge on The Voice America Business Channel.
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Are you wanting to grow wealth faster, save time and build a nest egg? Hire a tax pro who makes you money and does more than just file your tax return? Marcelino Dodge of Cash Tracks Financial identifies your key numbers, works year-round, improve your numbers, keeps you compliant and helps you achieve goals faster. Call Marcelino Dodge today, 719-336-8739 to schedule your free tax strategy review. Call 336-8739 or visit cashtracksfinancial.com.
Many people want to build wealth or grow their business faster, but do not know what specific numbers to look at that actually helped build monthly cash flow. Hire a tax pro who makes you monet and does more than just filing your tax return. Marcelino Dodge of Cash Tracks Financial identifies your key numbers, works year-round to improve your numbers, keeps you compliant and helps you achieve goals faster. Schedule your free tax strategy review by calling 719-336-8739 or visit cashtracksfinancial.com.
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This is The Tax Answers Advisor with host, Marcelino Dodge. To reach our program today ,please call in the number is 1-866-472-5790. That’s 1-866-472-5790. You may also send an email to email@example.com. Now back to The Tax Answers Advisor.
Marcelino: Welcome back to The Tax Answers Advisor. This is Marcelino Dodge, appreciate you listening to the program today as we are discussing the IRS Dirty Dozen tax scams that are out there. A final warning that everyone needs because tax season is coming up and the scammers like come out of the woodwork trying to do everything they can to steal your tax information, and in many cases, steal your refund as well.
We’re on number four of our dirty dozen, which is social media scams. These scams, once again, take advantage of various events as once again going on right now the COVID-19, to try and steal your information and to get money from you. Now social media is an area where information, of course, we know is widely shared people post photos and other information about themselves. Now this is where as a business and as a person who’s interested in people.
I always encourage people to be careful on what you post on social media, especially photos because it’s often thought or often recommended that if you post this photo, would you like to see it on the front page of a newspaper? So it’s a thought provoking because when you put information out on the social media, it’s shared and scammers can use this as ammunition for a wide variety of scams that are out there that they’re trying to do.
So it’s very, very important that you be careful what you post, and keep in mind that the information that you put out there on social media can be used by a potential criminal to convince you that they’re speaking with someone that is close to them. Because we got a lot of cases and we’ve read a lot of cases where once I’ve met through social media, whatever the person wasn’t exactly who they said they were. And there’s been other challenges that come up. So it’s important that if you’re going to use social media that you have also some privacy settings that you can use in those things, you need to examine those to help to prevent being scammed through social media, especially when it comes to your tax and personal information.
Because what you can also get communicated from these ones through text, email, or even through the social media messaging applications that are available, you can possibly receive a link of some type of subject because when they go and look at your social media, potential victims can be sent a something that could be of interest to them. And of course, by studying your social media, a potential criminal can say, they’re interested in perhaps certain types of cars, or they’re interested in various other subject matter, whatever that may be.
And they could send something that could be of interest to you. And that, once again, that link could be very, very dangerous to you. As well, as ones can use potential contacts, to even go after your friends and family if they get into your social media. So it’s good to be thinking about your social media is to be changing your password often. And just be extremely careful, because they’re scamming for tax information. And for other issues, via social media.
Our next part of the dirty dozen number five is Economic Impact Payments or refund theft. Yes, we see the IRS has made great strides against refund fraud and theft but 2020, guess what, a new challenge came up. The stealing of any of Economic Income Payments various scams out there, once trying to do, trying to steal payments from people via any means that they can with their information.
So, just be aware that there’s a scam out there, you may get some type of text message, some type of email, or you may have seen this already but with more the potential or more these Economic Income Payments coming. I mean, it’s good to be aware of that there are scammers out there trying to take these, they get from filing false information on tax returns. Now, think about this, we’re filing false tax return that’s talking about earlier about the pins for your tax return. Well, they can steal your refund by filing a false tax return.
And thus, that’s where locking your tax return is very important to prevent this even from happening. These criminals also can supply bogus, that is bogus information that can divert a refund. I’m not exactly sure how they do this, but they can, there’s a way that they do this, that will divert your refund either to their own bank account, or to some specific address. And so they try to do these things to try to steal your refund.
Now, an Economic Impact Payments, here’s a side note on these that came through, is that nursing homes had to be warned that these Economic Impact Payments, they belong to the individual in the nursing home and not to the organization that was providing the care. So I’m very interested in seeing how this how they had to be reminded of this. But yet, keep that in mind. If you have an individual in a nursing home, and they get an Economic Impact Payment that belongs to them, it does not go to the nursing home or other facility providing care.
What it does also, is nice is that if you have an individual that’s on some type of federal program or Medicaid, that Economic Impact Payment they receive does not, I repeat, does not count in determining whether those individuals will be eligible for the Medicaid or other programs. It’s not considered income. That’s important to keep in mind as a potential for more of these payments come out.
Our number five, or I’m sorry, this is number six of the Dirty Dozen. We’re getting halfway through here at the halfway point of the show today. Senior fraud, yes, our dear Special seniors, they’re in need of special care, and those who take care of their senior parents while you are to be just commended. And seniors, they need to be on alert, and those who help them with financial matters need to be on alert, this type of fraud, unfortunately, happens in so many areas.
And so this is the most likely group to be targeted, and victimized by these because so many of our loving seniors are very, well they’re trusting many of them are trusting by nature, and they’re hoping that people will be honest and truthful with them. But unfortunately, that just doesn’t happen. And it’s just really sad that they are abused in such a manner. Now, both personal and professional relationships, these need to be close, very closely monitored, and very watched very closely so that no individual takes advantage of them.
Now, what helps when it comes to this fraud, this elder fraud or senior fraud is that when there’s a friend, a very close, trusted friend, or a family member, when they take interest, and they really assist, and I certainly am grateful. For ones that do this, and I see many individuals who do help their aging parents, I mean, I gave some help to my own mother before I lost her in 2019. And certainly that helps them to know that they’re cared for, and that broad can be avoided.
So as we look at this, and we consider this part of senior fraud, as one of the Dirty Dozen, we want to make sure that as individuals, as these as our older ones, they’re becoming more and more comfortable with technology. And as they do, so that does open up the means for fraud to happen to them. So we want to continue to help them to be on alert, because they are getting emails, fake emails, this is I talked about the phishing emails earlier, we want to help them to see don’t click on certain things in these emails. They were getting text messages, same deal, then get the text messages, the fake websites, for charities, and so on, or fake IRS websites which are out there, that ones can be redirected to you got to be very, very careful. And some of these older ones using social media as well need to be encouraged to just be careful and cautious.
And I encourage, if you have an aging parent, take an interest in them do what you can for them to help them so that they’re not going to be a victim of this senior fraud this part of the Dirty Dozen. Number seven, here are scams targeting non-English speakers. And that’s another group that needs assistance and should be assisted but yet, these scammers go after them because often they have a limited English speaking ability.
And they can be threatened and intimidated, unfortunately. And oftentimes, when they make a phone call or contact them, they take a threatening tone with them. And that’s that can make them put them in fear and may go away and try to put them back so that they don’t, so that they’ll give up the money basically, or give up their information. And a part of this target with non-English speakers has been Economic Impact Payments.
Oftentimes seeking both personal once again, financial information, claiming that they’re going to help them to get their Economic Impact Payment. And that’s, again, not good because you can only really use a trustworthy person such as this office, if there’s a need to be there or just going directly to IRS.gov. For non-English speakers, they often get phone scams as a big threat which comes through robo calls, which we’re all sick of those things coming in, but they get those and sometimes they get a real person that’s trying to intimidate them.
And so what, we just be very, very careful about and helping them to see or find trustworthy, which is why in my particular case in my office, if I have a non-English speaker, which in my area most commonly is Spanish speaker, I happen to be blessed with a bilingual assistant who can speak both English and Spanish and she does a very fine job and in helping ones and explaining things to them.
Now look in further intimidate some non-English speakers is that when one makes a phone call to them, one of these criminals make a call to them. They may already have some information they may have like their address, or they may have like the last four digits of their social security number or their item number, they may have those things so that you may make them think. I need to do something, I may have a problem, I may actually owe the IRS something.
Well, once again, what these individuals will do in a threatening tone, they’ll threaten jail time. They’ll threaten deportation, they’ll threaten revocation of their driver’s license. And so these non-English speakers will, because they just don’t want to have to worry about it. Sometimes they’ll give in. And so keep in mind, and this goes on if you know some who are and you want to help them who are non-English speaking. And you can let them know that you know, the IRS doesn’t communicate this way. Get that to them so that they know that the IRS doesn’t do anything with jail time, deportation, all they want is the tax.
Or if they actually do it, and they’ll actually send you a letter and they’ll send you multiple letters before you even get further contact. And when you get the certified letter, that’s when you’re really worried. And the most vulnerable when it comes to non-English speakers in this are those who are the most recent immigrants. So just be careful and try to help any non-English speakers, yes, this podcast is English.
But if this information can be shared with anyone you know, just to let them know the IRS does not do this, that would be greatly appreciated. We can help. We can help ones and to avoid these situations, we’d be eternally grateful. Now we’re at number eight of the IRS is dirty dozen. And this is really one of my biggest issues is unscrupulous return preparers. Yes, the vast majority of those who prepare taxes every year, they’re honest, they’re really good people, they do a fine job.
But what we encounter just like every other business, is that there’s some bad apples, bad eggs out there who mess it up for everybody else. And so certainly these dishonest ones need to be found. They need to be gotten rid of or just stop, stop doing it. I talk previous shows about ghost preparers. Yes, these are preparers who oftentimes will do it cheaply. But yet, oftentimes, and I’ve seen this happen in my own practice here in helping people is that there’s serious filing mistakes.
Potentially even there’s tax fraud. Person may even lose their refund, because of how poorly this person did their tax return. And these goes tax repairs are often not all they do as a tax where they don’t do anything else. And they’re done. You never see him again until the next year, and it’s time to collect a little money to do a tax return. Oftentimes, these tax preparers will target those who are not even required to file a tax return.
Which is interesting that they would do that. But anyways, to make money. So these types of repairs, once again need to be avoided. I have heard this, I’ve seen in my area where once promise to this huge refund, I mean just big refund, they’re gonna give you x amount of dollars per child. I hear this, and it’s a false claim. There’s certain credits that they so we can take this and we can take this. But yet, take those claims they need to inflate income and do other basically fraudulent activity.
And so if they’re going to do something and you don’t actually have the income, that’s someone you don’t want to even come close to, I’d say run and run like you’ve never run before. Also, if you ever are asked to sign a blank form 1040, do not do it. Another one of those situations, run and run fast. These returned prepares also are to be avoided. If they say oh, I can give you 5000 or I can get to $10,000 back and they haven’t even looked at your W-2s or 1099s or whatever your records are.
That where that’s what’s really infuriating, they’ll do this. Make these false promises just to get someone to come pay him them, whatever amount they’re charging to do it. Also, I haven’t encountered this, but obviously it is an issue where some return preparers charge a fee based on a percentage of the refund, which I don’t know maybe 5%, 10% of the refund is what they charge as the preparation fee.
That’s another one of those situations, run and run fast because that is not how you’re supposed to do it. And that is often inflating, the tax preparation fee to really an outrageous amount. And also with these unscrupulous return preparers, these people who charge you 2550 or $100 to do a tax return. They’re violating the law, if they do not have what’s in the business known as P10, which is a preparer tax ID number.
If you get paid to repair a return doesn’t matter if it’s five bucks, 20 bucks, 500 bucks, whatever. You are required by law to sign that tax return and put that P10 number on it. And so if that tax preparer does not do that, or doesn’t have that, then you need to run fast and find a reputable tax return prepare like myself, here at Cash Tracks Financial and we will do it absolutely right the first time and do it according to what the law is.
We’ve covered nine, no, we’ve covered eight, eight of 12 of the Dirty Dozen. We’ll cover the remainder here after this break. This is Marcelino Dodge on The Tax Answers Advisor on The Voice America Business Channel.
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Are you wanting to grow wealth faster, save time and build the next egg? Hire a tax pro who makes you money and does more than just file your tax return? Marcelino Dodge of Cash Tracks Financial identifies your key numbers, works year-round to improve your numbers, and keeps you compliant and helps you achieve goals faster. Call Marcelino Dodge today, 719-336-8739 to schedule your free tax strategy review. Call 336-8739 or visit cashtracksfinancial.com.
Many people want to build wealth or grow their business faster, but do not know what specific numbers to look at that actually helped build monthly cash flow. Hire a tax pro who makes you money and does more than just file your tax return. Marcelino Dodge of Cash Tracks Financial identifies your key numbers, works a year-round to improve your numbers, keeps you compliant and helps you achieve goals faster. Schedule your free tax strategy review by calling 719-336-8739 or visit cashtracksfinancial.com.
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When it comes to business, you’ll find the experts here. Voice America Business Network.
This is The Tax Answers Advisor with host, Marcelino Dodge. To reach our program today, please call in the number is 1-866-472-5790. That’s 1-866-472-5790. You may also send an email to firstname.lastname@example.org. Now, back to The Tax Answers Advisor.
Marcelino: Welcome back to The Tax Answers Advisor. I’m Marcelino Dodge, appreciate you tuning into the program today, is been talking about the Dirty Dozen tax scams that the IRS has issued out. We’ve covered eight of these up to this point. And it just gets deeper and deeper as you go into this, because so many people out there are after your identity after your money and they’re using various means even through the IRS to try to do that.
We’ve all heard these commercials as we go on to number nine, where they make these claims. It’d be on television or radio, sometimes it’s been, it was in the old phone books, if you’ve had a paper phone book these claims where we’re gonna settle your tax debt for pennies on the dollar this people owed $100,000 we settled their debt for $1,000 or whatever. Well, those are what the IRS identify as Offer in Compromise Mills.
Oftentimes, we see exaggerated claims where they’re going to settle a tax debt, as I mentioned, for pennies on the dollar. They make it sound like it’s an automatic process. And it’s funny because I’ve gone to many seminars over the years that have discussed these matters. And a lot of these individuals, it seems like they come and go, and that’s really what happens. They come and go, we see some who advertise, I guess they make some money.
But, then until the Attorney general’s office in some state comes after them for not really doing what they say they’re going to do, then they’re gone. And it seems like I hear these ads on the radio, come and go as well, for this company, and then for a little bit, then they’re gone. Now what where this is really a scam is that they say they can get this done. They’ll gather your information, they’ll charge a pricey fee. And they’ll get out these applications, it’s called an offer and compromise. They’ll help the taxpayer to prepare or supposedly prepare, and they don’t even know if the taxpayer qualifies for it. And they charge them these exorbitant fees and they make it sound like the IRS accepts all of these offers in compromise. Well, the IRS does not accept all of these offers and compromise offers.
In fact, most recent stat we got was from 2019. The IRS received 54,000 of these offers in compromise, they only accepted 18,000, which means they only accept the IRS in that year they only accepted about 33% of the offers in compromise that were submitted. So it’s not as automatic of a process is once can make you think also, what where it’s misleading is that they make it sound like all this is going to happen like right away.
Well, in reality, when you do an offer and compromise it takes several months before the IRS, even gets to it so oftentimes talking six months to a year before you can get a response from the IRS on an offer and compromise, so it doesn’t, it’s not as automatic and it just doesn’t happen as fast. So we always suggest that you need to work with the reputable, Enrolled Agent, such as myself, a CPA or a tax attorney to assist you if you need indeed have some tax issues or back taxes owed or unfiled tax returns.
Find someone reputable, and you can definitely use an office like a Cash Tracks Financial to help you to catch up on that, it’s a tax representation work and we’re happy to help ones to take care of that as a part of our services. Number 10 on this list, is fake payments with repayment demands. Oftentimes what we see happen is that the IRS accidentally doesn’t accidentally go back here, is that criminals will then steal or obtain both the taxpayer social security number or their I10 and bank account information.
And then they file a false tax return, sometimes on behalf of the taxpayer and sometimes even with the taxpayers knowledge this tax return is file, and they get their refund direct deposit into their account. And this, they have the nerve here they’re going to file a tax return, they’re going to then they’re going to call pose as an IRS employee claiming there was an error. And you must return the money to us.
Now, again, the IRS will not call you, they will send you a bill, if you actually owe them the money, what these people do though, where they make their mistakes, is that they will then tell you you need to repay us but you need to buy a gift card to send us, the IRS never demands, how you pay them they just want to be paid. So, don’t fall for that, never get a gift card and send it to someone because it’s just a form of fraud.
Because when the IRS actually wants a payment from you, they’ll take a check, they’ll take a money order, there’s ways you can pay him through a credit card as well. So, there’s options available and the IRS never does payments through gift cards. If by chance, you do happen to receive some type of refund. And you didn’t expect the refund. Well, it’s important that you contact your financial institution, your bank credit union wherever you bank with or have your accounts, check with them see if they can figure it out, and then of course, call the IRS and let them figure it out, especially if it was a direct deposit of some sort, try to figure it out then but don’t ever, ever, except that you have a gift card to pay a tax payment.
No, IRS doesn’t do that, and state governments, don’t do that as well. Now another area and this is important for employers, particularly is that there’s payroll and human resource scams out there. There’s phishing emails that are going out probably starting to go out now or will be going out any time. Designed to steal W-2 information, wanting you to click on something or fill out something. I haven’t heard too much about these myself, but there has something to do with W-2.
So employers be on guard, and if you happen to get one of these emails. Actually you can report this to it’s a phishing, p-h-i-s-h-i-n-g@IRS.gov, basically for the email to their, and then all of those things that the IRS sorted out and they’ll get after it. They will get on top of it, business email compromise and business email spoofing is happening, these are two other types of scams that are going on with businesses and these HR scams.
And sadly, we see because of the COVID-19 is some business closed employees are working from home. This has become even more and more of an issue. There’s a gift card scam going on through. I don’t know what this obsession they have with gift cards I guess because they’re hardly there, you can’t really trace them and so on. But they’ll use a compromised email account to request gift cards, and they’ll even ask you to purchase them in various denominations to send to submit to these ones for their criminal purposes.
Here’s when we’re employers got to be extremely, extremely careful and employees as well. It’s a direct deposit scheme. Once we have accessed the victim’s email account, and used it to change direct deposit information so it’s why we recommend again. Be good, update your email password every so often, because they can direct the employer to update direct deposit information and direct to an account that the criminal or the fraudster controls.
That is the crazy scheme that’s out there so that’s where HR departments need to be very, very careful on that on payroll, so that it is always going to the right place and if they get request. It’s kind of one of those areas where I’m like you know I really want that in writing. I don’t, I mean like physical writing not coming through an email address but get it in physical writing and confirm with the employee if they want it to go to this account so be very careful out there.
I don’t care if this is a business that’s two people, or 2000. Those HR departments got to be very, very careful there. And then file a complaint with the FBI, Internet Crime Center as well. Our last one is a ransomware real quick here. Our 12th one targets both human and technical weaknesses. So basically, if you accidentally download something onto your computer that tracks keystrokes, locks up your data, and then asks for you to make a payment of some type in like Bitcoin to be able to access your data.
Well, just don’t click on anything you shouldn’t click on and you can avoid ransomware. These often come, this can often enter through phishing emails, like again, fakes charity solicitations, so they’re looking for errors in the system. So that number 12 again, ransomware, so avoid that and that’s where good backups on your system are good and even like 30-day backups, backing it up consistently.
So that you can you don’t have to succumb to that, of course the best choice is always to avoid it. Well these is the IRS Dirty Dozen tax scams, that we warn you to be on the lookout for. And as Cash Tracks Financial here, Marcelino Dodge we can help you to avoid these as well as help you to look for intelligent solutions in business and financial life. You can always reach me at cashtracksfinancial.com, email at email@example.com.
And call me 844-394-4287, and we would be happy to work with you through our three-step intelligent solutions management process to help you achieve your goals. Both business and your financial goals even faster through steps, through an action plan that takes care also of your taxes and accounting work, so that we keep you up to date with year-round service proactively helping you work on your taxes and of course, we are a part of our three-step process. You have access to me, Marcelino Dodge year around for no additional costs.
So keep please, please contact us and we’ll be happy to work with you and help solve your tax issues as well as work with you to be able to help you to be successful because financials success should be for everybody. Next week, we’re going to discuss a very important topic, course, I call all of these very important topics because this is such an exciting topic for me to talk about in all of it is important in helping you as individuals to protect your information to pay as least tax as possible.
And this case even some legal matters of how you can protect your business in regards to the American with Disabilities Act and get a tax credit. So we’re going to look forward to speaking to you again next week, 9am Pacific. This is The Tax Answers Advisor, I’m Marcelino Dodge on the Voice America Business Channel.
Thank you for listening to The Tax Answers Advisor with host, Marcelino Dodge. We’ll be back again next Thursday at 12 noon Eastern time, and 9 am Pacific time, on the Voice America Business Channel. We’ll have more to share next week.
Cash Tracks Financial Inc.
117 W Beech St
Lamar, CO 81052
Toll Free: (844) 394-4287
Fax: (719) 336-8799
Phone: (719) 336-8739
Toll-Free: (844) 394-4287
Fax: (719) 336-8799
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