IRS warns taxpayers to be wary: 'Tis the season for tax scams

HUNTSVILLE, Al.
It's end-of-the-year tax-filing time, which also means: 'Tis  the season for tax scams.
The Internal Revenue Service is reminding residents that time is running out to file returns and claim benefits on 2010 taxes.

"... You must take action no later than Dec. 31," said IRS spokesman Dan Boone. "Action now could save you money later."
Some of the tax benefits that need to be taken by the end of the year or, in this case, the end of next week, include charitable contributions, energy-efficient home improvements and contributing the maximum to retirement accounts.
And, Boone said, as the tax-filing season approaches, the number of tax scams increase.
Among the scams are emails claiming to be from the IRS. But Boone emphasizes that they are not from the agency.
"Scammers often use official-looking emails," Boone said. "The IRS never initiates contact by email. All unsolicited email claiming to be from the IRS should be reported to phishing@irs.gov."
If the IRS needs to contact you, most often you will get an official notice in the mail, he said. If someone claiming to be an IRS employee calls or comes to your home or business, be careful. Boone said IRS callers should provide their name and employee ID number. IRS visitors should have an official government badge or ID.
"We've had reports this year of tax scammers using the mail, going door to door, and even using the good names of local churches, attempting to trick people into filing false tax-refund claims or giving out their personal information," Boone said.
He said if anyone has any doubts about any type of contact from the IRS being authentic, don't hesitate to decline giving out any information.
"Then call the IRS at 800-829-1040 to confirm that it's really from the IRS," he said.
Alabama Securities Commission Director Joseph P. Borg joined with Boone in warning residents about some unwelcome season's greetings.
"Citizens should use the vast array of IRS and ASC resources to protect themselves and learn how to make informed financial decisions," Borg said. "With tax rebates and refunds on the way, large numbers of baby boomers retiring, and people desperate to make higher returns on life savings - it's time to proceed with caution."
They said identity theft is a recurring problem with the wide use of computers and smartphones.
"With identity theft on the rise, people must be vigilant in protecting their personal information on paper, cell phones and computers," they said.
Another popular scam is an offer of "free money," they said.
"Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can claim government money with little or no documentation, have been appearing in communities around the country, including some in Alabama," Boone said.
Borg said the scammers sometimes target church congregations, exploiting their good intentions and credibility.
"These schemes also often spread by word of mouth among unsuspecting and well-intentioned people telling their friends and relatives," he said. "Frequently, these scams target taxpayers who normally do not have a filing requirement, such as retirees, and involve claims for nonexistent Social Security rebates."
They both advise Alabamians that a sure way to help prevent being victimized is by remembering the old adage:
"If it sounds too good to be true, it probably is."