Reminder! Tax Scams You Need To Be Aware Of

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although the tax deadline is only a few weeks away, there is still plenty of time to be targeted by scammers who are looking to get a little extra out of you during this tax season. Earlier this month, we warned our readers about three of the most common tax scams that we often hear about, and today, we're here to remind you about them and share our recommendation for what you should do if you think a scammer is coming after you; read more below.

Common Tax Scams

While some tax scammers may use an original approach, three of the most common that people experience are: 

1. Phony phone calls
2. False links in emails
3. Frivolous arguments

One of the most important things to remember is that the IRS' preferred form of communication is U.S Mail, so if you ever get a phone call or an email from someone who claims to be a representative, approach it with much caution. And remember, the IRS will never ask you for your financial information over the phone, require you to pay without actually sending you a bill, demand payment without giving you the opportunity to ask questions or insist that you use a certain method to pay your taxes - if either of these situations present themselves to you, hang up and/or ignore the email.

Another important thing to remember is that the IRS will never threaten you with arrest. Scammers will often make you think that legal action will be taken against you if you do not comply with their request, but that is an immediate sign that you are dealing with someone who is falsely representing themselves.

Where frivolous arguments are concerned, we'd all love to be told that we are exempt from filing taxes, but the truth is that we are all required to file no matter what, so if someone positions you as the "lucky one" this year, don't fall for it!

Actions To Be Taken

If you suspect that you're being targeted by a scammer this tax season, the best thing to do is to contact your financial planner so that they can confirm if what you're being told is true or false. Then, let the IRS know about it - here is a list of things you should do if you receive IRS-related communication that seems rather suspicious.

Whether you actually experience a tax scam or not, know that we at American Investment Planners LLC want to see you and your information protected at all times, and we can help! To learn more about our financial planning services, please visit our website or give us a call at (516) 932-5130 today.

Tax Scams To Be On The Lookout For This Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

It's always important to be on your guard and know when someone is falsely leading you into thinking you haven't done something, but it's especially important to be aware of situations like these during tax season - when money is involved, some people will do just about anything to get you to cough up a little cash. And since we've seen people become victims of tax scams all too often, we want to help you make sure that you don't fall into a similar trap. Below, we outline three very common tax scams that you need to be aware of:

1. Phony Phone Calls: If you receive a call from someone claiming to be a representative for the IRS, don't just hand over any personal information such as credit card numbers or bank account information. The IRS will never: ask for your credit or debit card number over the phone, threaten you will arrest, require you to use certain payment methods for your taxes, demand that you pay without giving you the opportunity to ask questions, or call you to discuss the taxes you owe without sending you a bill first. In fact, they normally contact you directly through U.S mail, so a phone call should always be approached with caution. Although the individual on the other line may seem convincing, and although their threats of jail time and legal action may be intimidating, don't get caught up in the fear they try to invoke - simply hang up.
2. False Links: Receiving an email from who you think is the IRS or a tax software company may cause you to think it requires immediate attention, but these emails are often dangerous and usually encourage you to click on links that will take you to harmful websites. Even when the link appears to be authentic, don't offer your Social Security number or any other personal information that can be used by a scammer to access any of your records - identity theft is a major issue during tax season. If you have the slightest hint of doubt over an email (or maybe even a text message) that you receive, don't open it. Like we said in example #1, the IRS tends to use U.S mail as their preferred form of communication, so a suspicious email may definitely be a sign of a scam.
3. Frivolous Arguments: We'd all love to hear that we are the lucky one who is exempt from paying taxes, but in reality, filing a tax return is something we all must face. So, if someone approaches you to tell you that you don't have to take part in tax season for any reason, such as that filing taxes is a voluntary process, don't take their word for it. Following along with a frivolous tax argument can lead to civil and criminal penalties, so never listen to anyone who tells you you're exempt from filing this time around.

So who and what can you trust in all of this? When it comes to filing your taxes, your best bet is to sit down with your family's financial planner - they have your best interest in mind and will always provide you with the most accurate information. And if you should suspect that you are being targeted for any reason, don't hesitate to contact your financial planner to confirm whether or not what you are being told is true.

Here at American Investment Planners LLC, we understand how serious tax scams can be, and it is our goal to keep our clients and their finances safe, especially during this time of year. If you have questions about tax scams or experience any of the above, please give us a call at (516) 932-5130 so we can put your mind at ease.