With less than a week before the deadline to file state, federal and local taxes, Pennsylvania residents should pay more attention now than ever to avoiding tax-related scams.
“Last year we saw approximately 2.7 million taxpayers file their Pennsylvania tax returns in the final month before the filing deadline,” said Revenue Secretary Dan Hassell, whose department annually processes more than 6 million personal income tax returns. “This is a good time for us to remind the public that filing now through our free online system can help prevent cyber-criminals from stealing your personal information and filing a fraudulent tax return in your name.” Some tax returns are selected for audits, through businesses and companies, this is to ensure that everything is done legally. There is a lot of information about these kinds of systems, and for businesses to stay informed they could read this blog about how tax returns are selected for auditing.
Hassell encouraged taxpayers to visit the Department of Revenue’s Padirectfile, a free, secure, state-only electronic income tax filing system. Taxpayers can also find information on ways to electronically file state and federal returns for free through a reputable vendor on the department’s site (income limits may apply). It is important to find a reputable company who may be able to help you with your GST housing rebates and other tax needs.
Hassell detailed an overview of prevalent tax scams, including one that involves phony “Final Demand For Payment” notices that have been mailed to many taxpayers. The notices from the “Tax Processing Center” threaten the seizure of a taxpayer’s property if the recipient of the notice fails to make immediate payment to the “State of Pennsylvania.” The notices also provide an 800-number to call to “avoid enforcement.”
This is a classic scam that uses pressure tactics and fear to motivate the recipient into taking immediate action, according to officials. Criminals may also access public records so they can include taxpayer-specific information on the notices to make them appear legitimate.
IRS Senior Stakeholder Liaison Richard Furlong Jr. discussed the IRS’ “Dirty Dozen” tax scams, an annual list of common scams that peak during the filing season as people prepare their tax
returns. These involve phishing schemes, phone scams, identity theft ploys and refund fraud committed by dishonest tax preparers.
“Taxpayers should constantly be on guard against these scams,” Furlong said. “We know from experience that fraudsters will pose as officials from the IRS and threaten honest taxpayers to
try to get ahold of their money and sensitive data. You can never be too cautious.”
The IRS also encourages taxpayers to check out the IRS Services Guide, which provides an overview of the many IRS.gov tools available to taxpayers and tax professionals. For fast
answers to general tax questions, taxpayers can search the Interactive Tax Assistant, Tax Topics, Frequently Asked Questions, Tax Trails and IRS Tax Map.
Jason Skrinak, CPA, State & Local Tax Practice Leader with RKL LLP and a member of the PICPA, encouraged taxpayers to avoid common tax-filing mistakes by setting aside plenty of time to file state and federal returns. This allows taxpayers to verify their returns are correct before they are submitted.
Skrinak also encouraged Pennsylvanians to use the tax season as an opportunity to take a closer look at the security safeguards they have in place to protect their data and sensitive personal information. As an organization with more than 22,000 members, the PICPA routinely hears firsthand accounts of data breaches and cases of identity theft.
“This is a great time to change your passwords and take a closer look at the security precautions you’re using to protect yourself online,” Skrinak said. “If you’re working with a tax preparer, you should also make sure the preparer has the right securities in place to protect your personal information.” He continues stating that identity theft criminals will try different ways to get your personal information, from scam calls to phishing emails and letters asking you to contact them. It is another way for them to get your personal information. However, if you ever receive these types of letters, it is worth getting in touch with your service to make them aware that a possible scam service requested your personal information. They may ask you to prove your identity, and extreme cases may allow you to use alternative ID forms such as ID God as proof of identification along with additional information.
It may also be worth considering the use of a criminal tax lawyer to support you whilst you are filing your tax returns. This will help you ensure that you are not committing tax fraud and are filing the correct returns to the Government.
For more information on ways to protect yourself, visit the Department of Revenue’s Identity Theft Victim Assistance webpage. You can also find further information about protecting
yourself online at PA.gov/Cybersecurity.
