The IRS has announced that the start date for the 2016 Tax season. The IRS has begun accepting tax returns for 2015, both filed electronically and those filing paper returns. As the saying goes, two things are certain, death and taxes, but the Better Business Bureau warns there is a third-“Tax Scams”.
After reviewing both inquiries and complaints received in 2015, the BBB of Chicago and Northern Illinois concluded that the IRS telephone tax scam was the number one scam. The most recent federal figures are from 2014 and they show, according to the Federal Trade Commission, more than 55,000 people filed IRS Scam complaints. That number is dwarfed by the figures from the U.S. Treasury where in the past two years more than 400,000 complaints were received. In addition, the Treasury Inspector General for Tax Administration (TIGTA) says 10,000 new scam calls are made every week.
“From January to December last year we saw a steady stream of calls about the IRS Scam, and there is absolutely no reason to think that won’t continue,” says Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Unfortunately, across our service area alone, we expect there will be thousands of consumers who will become victims of this scam.”
Bernas points out, “Our concern is that consumers are prepared to act, if or when they get a call or an email, and especially what to do if they fall victim.”
The IRS predicts this year there will be 150 million individual returns filed. For scammers that number represents a fertile hunting ground. However, it is not difficult for consumers to protect themselves:
For calls – Hang up. The IRS does not contact taxpayers by phone to demand payment. And would never ask that it be sent via wire transfer or pre-paid debit card.
For emails – Delete it. Like calls the IRS will not send an email. All contact is via U.S. Post Office.
Bernas also notes, “Consumer should also understand the IRS doesn’t threaten people with arrest, revocation of their driver’s license or deportation. And, it doesn’t request payment of an outstanding bill without offering taxpayers the opportunity to appeal the bill.”
Tax-related identity theft is a major concern for both the IRS and the Illinois Department of Revenue (IDOR). Tax I.D. Theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund.
Victims of tax I.D. Theft should follow these steps:
If you receive a letter from the IRS saying two (or more) returns have been filed in your name or that your identity has been stolen, call the number in the letter immediately.
Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit record.
If you know or suspect you may be the victim of tax ID theft but haven’t received a letter, call the IRS Identity Protection Specialized Unit at 800-908-4490.
If your Illinois tax refund has been compromised; you should contact IDOR at 800 732-8866 and state that you have been a victim of ID theft.
IDOR has issued a notice that Illinois tax refunds will be delayed until March 1st to allow the agency time to make sure refunds go to the correct individuals.
Taxpayers who think they might owe current or back taxes to the IRS, they can check with them at 1-800-829-1040.
Consumers who become victims, by paying the scammer or providing information to them, need to act to protect themselves from further injury:
Contact the police, the Federal Trade Commission (FTC.gov) and the Tax Inspector General (tigta.gov or phone 800-366 4484).
For more information on scams, visit www.bbb.org/chicago, like us on Facebook, follow us on Twitter or add us on Pinterest.
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ABOUT BBB: For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2014, people turned to BBB more than 165 million times for BBB Business Reviews on more than 4.7 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. The Council of Better Business Bureaus is the umbrella organization for 113 local, independent BBBs in the United States, Canada and Mexico, as well as home to its national programs on dispute resolution, advertising review, and industry self-regulation.
– See more at: http://www.bbb.org/chicago/news-events/news-releases/2016/01/tax-filing-season-begins-today-tax-scams-continue/#sthash.lCrsDTRw.dpuf
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