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One organization you especially do not want to do wrong is the IRS. Violating tax law can have serious financial and legal repercussions. In severe cases, it can even result in jail time. Unfortunately, scammers rely on this fear of the IRS to manipulate people. Although they are most active around tax time, these individuals commit fraud year-round. Here is what you need to know about protecting yourself from some of their most common tactics. 

How to Avoid a Tax-Related Scam 

1. Avoid Temporary “Pop-Up” Shops

Right around tax time, you might notice several new tax preparers setting up shop at the office parks and strip malls in your area. Although some of them might be legitimate, you should avoid “pop up” shops that are only around for a couple of months out of the year. Not only is it impossible to review their track record, but if there is an issue with your return, you may be unable to find or contact them again. 

2. Screen All Calls 

tax lawIn general, it is wise to let unknown callers leave a voicemail so you can call them back if necessary. If you do happen to pick up and the caller claims to be from the IRS, hang up. The fact that the IRS only initiates communication via the U.S. Postal Service can be frustrating in today’s fast-paced world, but it makes it easier to identify scammers. Anyone who calls or emails you claiming to be from the IRS has fraudulent intentions. 

3. File as Soon as You Can 

Some scammers make money by filing fake tax returns and sending the refund to their own bank account. Therefore, you are theoretically vulnerable to someone submitting a return using your Social Security number until you file for that particular year. Fortunately, as soon as the IRS processes the actual return, the risk goes away — until the next tax year, of course. 

 

If you were the victim of an IRS-related scam — or you’re facing a dispute regarding a tax law violation — turn to Corey C. Davis CPA Attorney at Law in Kerrville, TX. Corey C. Davis is a certified public accountant and a tax law attorney who provides comprehensive financial and legal advice to clients throughout Kerr County. Services include income tax preparation, estate planning, QuickBooks® setup, and IRS representation. To arrange an initial consultation, visit his website or call (830) 257-8800. 

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