The IRS is Warning All Americans of a New Scam
Another day, and another scam. It really does seem like scams are popping up more than ever, which means that we need to be more aware of the scams that are out there. Now, the IRS is issuing a warning to all Americas of a new scam.
The IRS is Warning All Americans of a New Scam
The Internal Revenue Service is warning all American taxpayers about a new scam that could have you getting a tax refund for which you don’t qualify. It involves the purchase of clean energy tax credits. According to the IRS, “unscrupulous tax return preparers” are telling taxpayers that they’ll quality for receiving clean energy tax credits, but they don’t really qualify. The scam is mainly for people who file Form 1040, which is used to find out how much you owe the IRS or if you’re entitled to a tax refund. The IRS says that “individual taxpayers claiming inappropriate credits risk future compliance action by the IRS and are responsible for repaying the inflated credit, plus interest and possible penalties.”
“This is another example where scammers are trying to use the complexity of the tax law to entice people into claiming credits they’re not entitled to,” IRS Commissioner Danny Werfel said in a statement. “Taxpayers should be wary of promoters pushing dubious credits like this and others. The IRS is watching out for this scam, and we urge people to use a reputable tax professional before claiming complex credits like clean energy.”
So, what do you do if you actually think you’re entitled to a clean energy tax credit? The IRS says you should reach out to a “trusted tax professional for advice on whether they are eligible to purchase credits and claim the tax benefits.” They add you should, “understand how the limitations under the passive activity rules, and other portions of the tax code, may apply to their particular tax situation.” Also, the IRS wants your help to stop fraud. If you want to report an abusive tax scheme or a tax return preparer, you can use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers. Or, if you’d rather do snail mail, you can mail or fax a completed Form 14242 PDF and any evidence to the IRS Lead Development Center in the Office of Promoter Investigations. Read below for lots of new scams going around right now, so you can be aware of them and stay safe.
You Should Know These New Scams That Are Trending
Watch out for the new 'check cooking scam'
The AARP warns of a new scam called the “check cooking scam.” The AARP states, “In check cooking, thieves take a digital picture of a stolen check and then use commercially available software to alter it.” It can look super real, but it’s fake. So, how do you stay safe? “Consider using a safer payment method, such as a credit card,” they suggest.
Getty Images / Andrey Popov
Look out for the 'delayed-action sweepstakes scam'
The AARP states also warns of a new sweepstakes scam where “instead of trying to get you to pay taxes or other fees in advance to collect the nonexistent prize, the scammers will ask for personal information so that they can validate you and set up the payout.” Just say no.
Getty Images / Torsten Asmus
Watch out for AI-powered scams
These days, AI scams are big. Experian.com says today, scammers use technology to “write more convincing and natural-sounding phishing emails and text messages.” They can also “Impersonate the victim’s friend or relative and ask for money as part of a grandparent scam.” It’s scary stuff. Beware of anything that sounds too crazy, as these can often seem far-fetched, but AI makes them look real.
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Beware of student loan forgiveness scams
Experian.com says that student loan forgiveness scams are on the rise. They note that, “scammers may contact you via phone or create phony application sites aimed at stealing your Social Security number or your bank account information.” Don’t give out your information. If it sounds too good to be true, it is.
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Look out for the Paris Olympics scam
This one is really wild. With the games on the way, scammers can use the games to scam you. The AARP states, “A scammer hacks someone’s email account, and shortly after, all of that person’s contacts will receive the same message — something to the effect of, ‘Hey guys, I’m over in Paris and my wallet got stolen! Can anyone please help me out by sending gift cards or a Venmo deposit?”
Getty Images / Marcio-Binow-Da-Silva
The best way to avoid scams
Whether the scam is new or old, the best way to avoid it is to stop and think about what’s happening. These scam artists are super good at what they do, but if you just stop for a moment and really think out any actions, you can avoid making a rash decision that could cost you.
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