IRS-CI issues 10 tips to avoid tax season fraud
By IRS CRIMINAL INVESTIGATION
Each year, taxpayers’ personal information is compromised through phishing scams or by unscrupulous tax preparers. With tax season having kicked off, IRS Criminal Investigation (IRS-CI) wants taxpayers to be aware of tax-related fraud.
“Just like you choose a doctor or lawyer, choosing a tax preparer should be as important of a decision since you are ultimately responsible for everything on your tax form,” IRS-CI Special Agent in Charge Brian Payne said.
Tips to avoid tax season fraud include:
– Choose a tax preparer wisely. Look for a preparer who is available year-round.
– Ask your tax preparer for their IRS Preparer Tax Identification Number (PTIN). All paid preparers are required to have one.
– Don’t use a ghost preparer. They won’t sign a tax return they prepare for you.
– Don’t fall victim to tax preparers’ promises of large refunds. Taxpayers must pay their fair share of taxes.
– Don’t sign a blank tax return. Taxpayers are ultimately responsible for what appears on tax returns filed with the IRS.
– Make sure you receive your refund. Your refund should be deposited into your bank account, not your tax preparer’s.
– The IRS will not call you threatening legal action. If you receive a call like this, hang up.
– Don’t respond to text messages, emails or social media posts claiming to be the IRS. They may contain malware that could compromise your personal information.
– Don’t click links or open attachments in unsolicited emails or text messages about your tax return. These messages are fraudulent.
– Protect your personal and financial information. Never provide this information in response to unsolicited text messages, emails or social media posts claiming to be the IRS.
“IRS-CI is the investigative arm of the IRS, and this tax season, we want to remind U.S. taxpayers about ways they can protect their wallets and personal information,” IRS-CI Chief Jim Lee said.
A couple of the fraudulent tax preparation cases the IRS-CI Tampa Field Office worked in 2021:
– Orlando sisters sentenced in $25 million tax fraud scheme
Petra Gomez and her co-conspirator, her sister, Jakeline Lumucso, were sentenced to eight and four years in federal prison, respectively. They operated a tax preparation business with five locations in central Florida that filed more than 16,000 false tax returns for clients from 2012 to 2016 with a total estimated loss to the IRS of $25 million.
– Owner of Jacksonville tax preparation business sentenced to federal prison for tax fraud
Paul Berkins Moise was sentenced to 35 months in federal prison for owning and operating a fraudulent tax preparation business. Between 2013 and 2017, Moise defrauded the IRS by filing returns for his clients in which he grossly inflated deductions for state and local sales taxes, unreimbursed employee expenses, and gifts to charity. He was also ordered to pay restitution to the U.S. for a tax loss of $77,929.
For more tips on choosing a tax professional or how to file a complaint against one, visit IRS.gov. Taxpayers who suspect tax violations by a person or business, may report it to the IRS using Form 3949A, Information Referral. Taxpayers can report phishing emails to phishing@irs.gov or IRS impersonation scams to TIGTA.gov.
This year’s tax season began on Jan. 24 and continues through April 18 for most taxpayers. U.S. taxpayers are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code. Taxpayers found to be committing fraud may be subject to penalties including payment of taxes owed plus interest, fines, and jail time.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. The agency has 20 field offices located across the United States and 11 attaché posts abroad. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code.