Beware tax scams this time of year

On Behalf of | Jan 17, 2020 | Income Tax

January is quickly coming to a close, and many Connecticut residents are gathering all the necessary paperwork they need to get their taxes filed. While they are doing their part as tax season gets underway, so are scammers. More tax scams than usual pop up between now and mid-April than any other time of year.

What are some of the most common tax scams? Typically, people are sent emails, mail or are called and told they will be arrested if they don’t pay up now. Out of fear, people respond and end up finding themselves out thousands of dollars that they will likely never see again.

Another tax scam people may not be aware of involves ghost tax preparers. These are individuals who take money to prepare a person’s taxes and then fail to sign the return and commit some sort of fraud on the return as well. Not only do people lose money paying for tax preparation fees, but they also find themselves in trouble with the IRS. It can take a lot to clear one’s name if accusations of tax fraud come around.

These are some of the most basic tax scams that some Connecticut residents might fall for. There are others, some that are more complex. A full list can be found on the Internal Revenue Service’s website.

Tax scams can do a real number of one’s personal life. The financial and legal consequences can be overwhelming. Connecticut residents can avoid tax scams and their consequences by turning to an experienced tax law attorney to address any potential tax issues.