By Lisa Wade McCormick
ConsumerAffairs.com
February 20, 2010
Texas authorities are warning consumers to be wary of potential tax return scams.
But their advice doesn't apply just to consumers in the Lone Star State. It can also help keep taxpayers across the nation from being duped by unscrupulous tax preparers who may charge excessive fees or fail to file consumers' taxes on time.
According to the Internal Revenue Service (IRS), an estimated 1.2 million people earn fees for preparing Americans' tax returns.
But Texas authorities and others nationwide often receive complaints about tax preparers who don't file consumers' taxes on time, charge exorbitant fees, make errors on consumers' tax returns, disappear after returns are filed, or fail to return consumers' personal financial documents.
Authorities say consumers can protect themselves from crooked tax preparers by:
• Reviewing the tax preparer's credentials;
• Checking to see if there are any complaints about the tax preparer with the state's attorney general's office, district attorney's office, or other consumer protection groups. Consumers who hire certified public accountants can also check with their state's licensing board to see if there are complaints on file;
• Ensuring the business is open year-round in case you need to ask follow-up questions about your tax return;
• Demanding the tax preparer list all fees in writing;
• Making arrangements with the tax preparer to return your personal financial documents; and
• Confirming the basis for all tax deductions the tax preparer claims on your return.
"Taxpayers are ultimately subject to accuracy and fraud penalties, plus accrued interest, for any income tax underpayment caused by filing incorrect tax returns," warned Texas Attorney General Greg Abbott.
The IRS also advises taxpayers not to respond to any e-mails that appear to be from the agency. These fraudulent e-mails, which often increase during tax season, often direct consumers to links that request their Social Security, bank account, and credit card numbers.
The IRS emphasizes that it does use e-mail to solicit sensitive financial and personal information from taxpayers or discuss account information. The agency also said it does not request financial account security information, like PIN numbers, from taxpayers.
The IRS points out that phony e-mails that impersonate the agency often threaten consumers with additional taxes if they fail to respond, get the names of the Internal Revenue Service or other federal agencies wrong, have incorrect grammar or odd phrasing, or use long addresses in the links.
The actual address, or URL, for the Internal Revenue Service is www.irs.gov, which taxpayers are advised to consult to learn more about IRS-impersonation scams, identity theft, and suspicious e-mail.
Consumers who received suspicious e-mails that appear to be from the IRS should forward them to at phishing@irs.gov the IRS mailbox and then delete the messages from their inboxes.
