February 21 2017
It's tax season and that means tracking down all your forms, maximizing your write-offs with things like the mileage deduction and potentially getting a refund. The scammers are also out in force this time of year.
Here are some common tax scams the IRS has rounded up and some tips on how to avoid them.
There are thousands of scammers who try to trick people over the phone every year. This often involves somebody claiming you owe taxes or penalties and if you don't pay quickly, you'll be faced with punitive measures—including jail.
What's insidious about this is that the scammers can have legitimate information about you including your name, address or Social Security number.
The IRS will never:
Watch Out For Identity Theft
The government agency has warned tax preparers and taxpayers to be on the lookout for identity theft. Fraudsters are willing to steal your personal information and will file a tax return. They can also potentially receive a fraudulent refund meant for you.
What can you do to protect yourself from identity theft? Here are a few tips:
Make Sure Your Tax Pro Is Above Board
Speaking of tax professionals, make sure you're choosing a reputable one. Paid tax return preparers are required to obtain an IRS Preparer Tax Identification Number (PTIN). You can check on your preparer's qualifications with this IRS tool.
The IRS suggests:
Avoid Padding Your Deductions
The IRS warns against padding your tax deductions. "Taxpayers should think twice before overstating deductions such as charitable contributions, padding business expenses or including credits they are not entitled to receive," the IRS wrote.
The IRS puts padding your deductions on its "Dirty Dozen" list of tax scams to avoid. It's notable that this is the only "scam" on the list perpetrated by the taxpayer. That's how serious the government agency is about making sure you can prove your deductions.
Here are some tips to make sure you're getting the deductions you deserve without triggering an IRS audit:
To view the original article, visit the MileIQ blog.