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Popular Scams to Look Out For Part 2

Below are additional scams that IRS has warned to look out for:

• Scammers target individuals with limited English proficiency – scammers will make threats such as deportation and jail as a scare tactic.

• Dishonest tax preparers – you should always do your due diligence when choosing your tax preparer to make sure the person has a good reputation.

• Offer in compromise companies – taxpayers need to be care of these types of companies. These companies promote settling your tax debt for pennies on the dollar and then end up charging the taxpayer high fees by applying for programs that the person will never qualify for.

• Fake payments and repayment demands – the scammer will get the taxpayers personal information and filing a fake tax return but will have the refund direct deposited into the taxpayers actual bank account. Then the scammer will call the taxpayer posing as an IRS agent and tell the person the refund was a mistake and they need the money back. Then the scammer will ask you to repay it back in gift cards (which is a huge red flag in itself, the IRS will never ask for gift cards as payment).

• Payroll scams – Scammers will try to obtain copies of W-2’s that your company filed, in the past they have targeted people working in the Human Resources department to try to trick them into sending out the W-2’s.

• Ransomware – This is malicious software the scammer tries to trick you into downloading. You should never click on links from any unsolicited emails.

Please consult your tax advisor on all the above issues.

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