Want to know what scams the IRS is currently seeing? Here are a few to be aware of:
Fake Charities
You can’t deduct charitable contributions to fake charities. If you’re not sure the charity is real, then you can check with the IRS by visiting https://apps.irs.gov/app/eos/ I once met a guy who formed a fake charity with his wife to help 911 victims and then used the money to travel and pay for personal expenses. Fake charities often happen after a crisis or disaster and take advantage of our generosity.
Social Media Scams
Aside from giving bad tax advice that makes me cringe to hear it, some influencers encourage taxpayers to file fraudulent returns to receive large refunds. Social media posts may also connect you directly with scammers.
Offer in Compromise
Ever hear ads claiming you can settle with the IRS for pennies on the dollar? Although an offer in compromise is a legitimate tool, many of them are not accepted by the IRS. The best action is to contact a reputable tax attorney or CPA to discuss your options. Alternatively, you can use the Offer in Compromise Pre-Qualifier tool at https://irs.treasury.gov/oic_pre_qualifier/ to help determine if this is a good option for you.
Gift Cards
Do you really think the IRS needs you to go to CVS to buy gift cards to pay a tax bill? Unfortunately, this happens too often and especially with senior citizens.
Unclaimed Refund
The IRS will not send you a notice regarding an unclaimed refund and ask you to provide personal information, such as social security numbers, driver’s licenses and bank account information.
As always, be aware and know that if something sounds too good to be true, then it probably is.