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IRS Warns of Continued Scams, Varied Tactics as the Tax Deadline Nears

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IRS Warns of Continued Scams, Varied Tactics as the Tax Deadline Nears

IR-2016-62, April 13, 2016

WASHINGTON — The Internal Revenue Service today issued a warning that scammers may try using the April 18 tax deadline to prey on hard-working taxpayers by impersonating the IRS and others with fake phone calls and emails. Even after the tax deadline passes, taxpayers should know the telltale signs of a scam and tips to protect themselves from a variety of phone scams and phishing emails.

"We’ve seen continuing activity in these scams throughout the filing season," said IRS Commissioner John Koskinen. "As the tax deadline nears, these criminals may try and trick honest taxpayers over the phone or via email, and people should remain vigilant. After the tax deadline, watch out for these scammers promising a refund or threatening you with an unexpected tax bill."

These scam artists frequently masquerade as being from the IRS, a tax company and sometimes even a state revenue department. By email, they try enticing people to click on links in official-looking messages containing questions related to their "tax refund." Report these emails to phishing@irs.gov. By phone, many scammers use threats to intimidate and bully people into paying a "tax bill." They may even threaten to arrest, deport or revoke the driver’s license of their victim if they don’t get the money.

Variations of these scams can be seen nationwide, and it’s more important than ever to be cautious with providing personal or financial information. As part of the effort to protect taxpayers, the IRS has teamed up with state revenue departments and the tax industry to make sure taxpayers understand the dangers to their personal and financial data as part of the “Taxes. Security. Together” campaign.   

Some examples of the varied tactics seen this year are:

  • Soliciting W-2 information from payroll and human resources professionals (see news release IR-2016-34)

  • “Verifying” tax return information over the phone (IR-2016-40)

  • Pretending to be from the tax preparation industry (IR-2016-28

    There are some important reminders for taxpayers nationwide about these schemes.

    Watch Out for Threatening Phone Calls

    Beware of scammers making unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via a phishing email.

    Scammers often alter caller ID numbers to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.

    The IRS Will Never:

  • Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.

  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.

  • Require you to use a specific payment method for your taxes, such as a prepaid debit card.

  • Ask for credit or debit card numbers over the phone.

    If you get a phone call from someone claiming to be from the IRS and asking for money and you don’t owe taxes, here’s what you should do:

  • Do not give out any information. Hang up immediately.

  • Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.

  • Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.

  • If you think you might owe taxes, call the IRS directly at 1-800-829-1040.

    Avoid Email Phishing Attempts

    There has been a surge in email scams this year that appear to be from a tax agency or a tax software company. 

    Never reply to emails, texts or pop-up messages asking for your personal, tax or financial information. One common trick by criminals is to impersonate a business such as your financial institution, tax software provider or the IRS, asking you to update your account and providing a link. For small business, these schemes may try impersonating a company leader and request payroll and human resource information for employees in your company. Never click on links even if they seem to be from organizations you trust. Go directly to the organization’s website.

    And if it sounds too good to be true, it probably is. If you see an email that says "You won a free cruise" or "The IRS has a refund waiting for you," odds are high that it is a phishing attempt looking to get your personal information.

    If you get a phishing email, remember this important advice:

  • Don’t reply to the message.

  • Don’t give out your personal or financial information.

  • Forward the email to phishing@irs.gov. Then delete it.

  • Don’t open any attachments or click on any links. They may have malicious code that will infect your computer.

    More information on how to report phishing or phone scams is available on IRS.gov.

    Related Items:

  • www.irs.gov/identitytheft

  • Fact sheet FS-2016-1, IRS, States and Tax Industry Combat Identity Theft and Refund Fraud on Many Fronts

  • FS-2016-2, IRS, States and Tax Industry Urge Taxpayers to Join the Effort to Combat Identity Theft

  • FS-2016-3, IRS Identity Theft Victim Assistance: How It Works

  • FS-2016-4, How New Identity Security Changes May Affect Taxpayers for 2016 

     

Itemize Deduction

Posted by Admin Posted on Aug 01 2019

Itemize Deduction

The higher standard deduction means fewer taxpayers are itemizing their deductions. However, taxpayers who still plan to itemize next year should keep these tips in mind:

 

  • Deducting state and local income, sales and property taxes. The deduction that taxpayers can claim for state and local income, sales and property taxes is limited. This deduction is limited to a combined, total deduction of $10,000. It is $5,000 if married filing separately. Any state and local taxes paid above this amount can’t be deducted.
  •  
  • Refinancing a home. The deduction for mortgage interest is also limited. It’s limited to interest paid on a loan secured by the taxpayer’s main home or second home. For homeowners who choose to refinance, they must use the loan to buy, build, or substantially improve their main home or second home, and the mortgage interest they may deduct is subject to the limits described in the next bullet under “buying a home.”Buying a home. People who buy a new home this year can only deduct mortgage interest they pay on a total of $750,000 in qualifying debt for a first and second home. It’s $375,000 if married filing separately. For existing mortgages, if the loan originated on or before Dec. 15, 2017, taxpayers continue to deduct interest on a total of $1 million in qualifying debt secured by first and second homes.
  •  
  • Donating items and deducting money. Many taxpayers do a good summer clean-out during the warm months. They often find unused items in good condition they can donate to a qualified charity. These donations may qualify for a tax deduction. Taxpayers must itemize deductions to deduct charitable contributions and must have proof of all donations.
  •  
  • Deducting mileage for charity. Driving a personal vehicle while donating services on a trip sponsored by a qualified charity could qualify for a tax break. Itemizers can deduct 14 cents per mile for charitable mileage driven in 2019.
  •  
  • Reporting gambling winnings and claiming gambling losses. Taxpayers who itemize can deduct gambling losses up to the amount of gambling winnings.

 

IR-2012-86, Nov. 4, 2012

WASHINGTON — As part of the administration’s continued support for states and local partners impacted by Hurricane Sandy, the Treasury Department and the Internal Revenue Service today announced that they will waive low-income housing tax credit rules that prohibit owners of low-income housing from providing housing to victims of Hurricane Sandy who do not qualify as low-income. The action will expand the availability of housing for disaster victims and their families.

Because of the widespread devastation to housing caused by Hurricane Sandy, the Treasury Department and the IRS will temporarily suspend income limitation requirements and non-transient requirements for qualified low-income housing projects that provide housing to victims of Hurricane Sandy.

The President has declared that major disasters exist in Connecticut, New York and New Jersey, making federal funding available to affected individuals in designated counties through the Federal Emergency Management Agency (FEMA). Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. FEMA has also approved Transitional Sheltering Assistance (TSA) in New York and New Jersey for eligible disaster survivors who have a continuing need for shelter because they are unable to return to their homes for an extended period of time. Individuals and business owners who sustained losses can apply for assistance from FEMA by calling 1-800-621-FEMA (3362) via mobile device at m.fema.gov, or online at www.disasterassistance.gov.