IRS Warns Taxpayers About Fake Charities and Tax-Related Identity Fraud

We bring to your attention the latest warning from the Internal Revenue Service (IRS) regarding fake charities and tax-related identity fraud. This advisory is part of the ongoing “Dirty Dozen” tax scams series, emphasizing the importance of vigilance and caution, particularly during times of natural disasters and tragic events.

Key Points:

1. Scammers often exploit tragic events by posing as charitable organizations to solicit donations. They may also seek sensitive personal and financial information under the guise of charity work.
2. Taxpayers should be aware that deductions for charitable donations are only valid when directed towards IRS-recognized tax-exempt organizations. Utilizing the Tax-Exempt Organization Search (TEOS) tool on IRS.gov can help verify the legitimacy of charities.
3. Tactics employed by scammers may include email phishing, spoofed caller IDs, and targeting vulnerable groups such as seniors and individuals with limited English proficiency.

How to Protect Yourself:

1. Refrain from making payments under pressure and avoid charities that request gift card numbers or wire transfers.
2. Verify the legitimacy of any charity before making donations and avoid sharing excessive personal information.
3. Report abusive tax practices and incorrect tax filings by using the online Form 14242 or submitting a completed paper Form 14242 to the IRS Lead Development Center.

It’s crucial to remain vigilant and informed about potential scams, especially those targeting charitable giving and tax-related identity fraud. By following the IRS guidelines and exercising caution, we can collectively combat fraudulent activities and protect ourselves and our communities.