Tax time brings out a lot of scammers. If you want to keep a hold on your hard earned money, you will need to look out for these scams and avoid them. Here are some scams you should be aware of for 2016.
1. Tax Return Flipping
If anyone says that you should send them money via a prepaid card and they can turn it into more money, this is a scam to rob you. There is no way to add more money to a card; the scammers only wish to rob you then vanish without a trace.
2. Adding Dependents
If you do not have any dependents and have not had any for many years, it would be an immediate trigger for the IRS if you add one to this year’s taxes. Do not agree to claim a dependent for anyone.
3. Calls to Collect Tax Money
Some scammers, many from overseas, will call and say that they are the IRS and you need to pay them immediately or be arrested. The IRS would send official letters and not call you over the phone to collect.
4. Identity Theft
Identity theft is one of the most rampant schemes during tax season. Do not give your information to any tax company over the phone or to any other person with whom you are unfamiliar.
5. Phony Charities
Charities that are not exempt will not offer any tax breaks. Some charities will claim to offer a write-off on your taxes even though such a write-off is not possible. Be sure to check the federal list before you donate to a charity.
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