Watch out
for scams during tax season
Your millennial child, who may be new to filing taxes, might be fooled by the threatening voice from someone who claims to be an Internal Revenue Service agent. And he or she might not always realize the importance of basic stuff such as eyeballing billing statements or asking questions when something doesn’t completely pass the smell test.
With that in mind, here are some scams and consumer traps to avoid. These are personal examples that have landed in my voice mail, email and even snail mail since the start of the new year. I expect more.
Don’t be fooled by fake IRS calls from scammers pretending to be federal tax agents looking to scare people into sending them money for fictitious bills.
My wife recently received four calls on her cell phone from “officer Ryan Smith of the IRS,” who said in his recorded message that we “were under federal investigation for fraud and unethical practices found in a tax audit.” He advised us not to “disregard this message or it may be taken as an offense.”
The IRS does not make such notifications via phone calls, nor does it make threats or demands. Instead, the IRS sends a letter of a potential tax issue — and a very straightforward, polite letter at that. Disregard the phone call and notify the IRS or local police department.
In addition, be careful about signing up for deals offered by an independent, third-party subscription sales company.
Keep track of subscription offers, especially renewals. Don’t automatically write a check or authorize a credit card purchase.
Check your monthly credit card statement and challenge anything that doesn’t make sense or doesn’t look right. Consumers don’t have to pay for things they did not order or do not want. Call your credit card company, especially if you don’t get satisfaction from the business that you supposedly ordered from.
Because the product was defective, Samsung told us that in order to get a refund we had to first return the item and then purchase a new one, which led to a second charge. We also wanted to receive the discount from the original purchase. It’s been almost a month since the defective item was returned and the replacement product mailed out, but still no refund.
You might get a better return and refund experience from an electronics retailer or other chain store, where you can simply walk in and head to the return desk.
Recently I received a class-action settlement notice. The notification included a $25 check, but I almost didn’t bother opening the envelope because it looked like a piece of junk mail.