April 2008 Archives

 As we enter the final stretch of tax season, we thought it might be wise to warn taxpayers of some of the more common risks and scams.  Below are seven tips towards a scam-free tax season.

1. If filing online, be sure you are using one of the better known, legitimate sites to minimize errors and avoid scams.   Be suspicious of online offers to file your taxes for free, or promises that you won't pay any income tax.  If the offer sounds too good to be true, it likely is.  Stick with the better known sites.   TaxACT is a good choice for those on a budget with straightforward returns.  H&R Block's TaxCut also remains a popular choice for those with simple returns.  PCWorld.com rated TurboTax as the best overall experience with its comprehensive tax help.  CompleteTax is also well rated.  For more information, consult PC World at http://www.pcworld.com/article/id,124538-page,1/article.html.
2.  Don't get duped by bogus sites.  Though you'll find IRS-like sites at irs.com, irs.net, irs.info, etc., the only true IRS site is www.irs.gov.  The others may contain good information, but they are not sponsored in any way by the IRS (and many clearly disclose this fact).
3. Double check before entering personal information.  It is especially important to be sure you're on the IRS's official site when checking on the status of your refund or other details related to your taxes, particularly when entering any form of personal information.  To determine the status of your refund, visit the IRS's link at https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp.  Or start at the home page at www.irs.gov and click on the "Where's My Refund" button.
4. Beware of phishing schemes.  These schemes involve emails that appear as though they are coming from the IRS.  Usually the emails claim that you are due a refund; others may claim you are under audit.  In either case, the email contains links to sites that resemble the official IRS site, and generally ask you to enter personal information that is used to steal your identity.  Never click on these links.  Always start at the genuine site, and remember that the IRS does not send email to taxpayers.  All correspondence is conducted via snail mail, and sometimes phone.  If you receive one of these emails, forward it to phishing@irs.gov.   The IRS can use the information, URLs and links in the suspicious emails to trace the source.
5. Scams can occur over the phone as well.  Scammers also "phish" using the phone.  They call taxpayers posing as IRS agents, claiming that the taxpayer is due a special grant or refund.  They ask for bank account information so that the money can be deposited directly into an account.
6. Check the legitimacy of IRS correspondence or calls by contacting the IRS at 1-800-829-1040.
7. Visit the IRS's Dirty Dozen Tax Scams for 2007 at http://www.irs.gov/newsroom/article/0,,id=167983,00.html for more information.