What You Need to Know if You are the Victim of a Tax Scam

It is around this time each year that many individuals learn they have fallen victim to tax scams. From fraudulent tax return preparers to phone and email phishing scams, taxpayers face several risks if they are not careful. If you thought you filed your taxes on time but now find yourself dealing with the Internal Revenue Service (IRS), here are some important facts from New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

The IRS Monitors for Several Types of Scams Targeting Taxpayers

The IRS monitors for several types of scams targeting taxpayers, and it updates its list of tax scams on a regular basis. If you believe you may be the victim of a tax scam, you can review this list to learn more about the types of scams that are out there. Most scams fall into one of a handful of different categories, and knowing how to spot the “red flags” for a tax scam can help you decide what you should do next. Some examples of scams that are currently on the IRS’ list include:

• Identity theft scams
• “Ghost” tax return preparers
• Pandemic-related email scams
• “Tax transcript” email scams
• Phone scams involving people who falsely claim to be IRS agents
• Offer-in-compromise (OIC) mills
• Charity fraud

If You Are the Victim of a Tax Scam, You Must Still Meet Your Obligations to the IRS

If you have fallen victim to a tax scam—and if you have failed to file a timely and accurate return or pay what you owe as a result—you must still meet your obligations to the IRS. This is true even if you sent money to a scammer. Once you learn that you have fallen victim, you should address your federal tax obligations promptly. The longer you wait, the more difficult it will become to convince the IRS that you are an innocent victim.

You Might Be Able to Avoid Liability for Delinquency Penalties

If you are an innocent victim, you might be able to avoid liability for penalties based on failure to file or failure to pay. But, to determine what options you have available (and to pursue your best option effectively), you will need to rely on the advice of an experienced New Jersey tax attorney. While the IRS acknowledges that many tax scams exist, it isn’t necessarily sympathetic to those who fall victim. As a result, it will be up to you to convince the IRS that you deserve a reprieve based on your individual circumstances.

Schedule an Appointment with New Jersey Tax Attorney Kevin E. Thorn

If you need to know more about what you can (and should) do as the victim of a tax scam, we encourage you to contact us promptly. We can help you understand your situation and choose the best path forward. To schedule an appointment with New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 201-355-8202, email ket@thornlawgroup.com or contact us confidentially online now.