Beware e-mails offering tax refunds, filing assistance

Now that we’re within 60 days of the deadline for filing income taxes, it’s worth reminding ourselves not to be fooled by a couple of offers that fall into the familiar category of “if it sounds too good to be true, it probably is.”

The first of these is the wolf in Internal Revenue Service agent’s clothing. It comes by way of e-mail (where so many offers of so little value originate), and it’s a variation of the oldest theme known to con artists: something for nothing. As with all such offers, there’s something in it for the con and nothing for you.

The short, seemingly businesslike e-mail raises a number of red flags as its story unfolds: After reviewing your recent financial activity, the IRS has “determined that you are eligible to receive a tax refund of $200.20.” Tacking 20 cents onto a nice round number doesn’t hide the red flag – the IRS announces refunds by regular mail, never by e-mail or over the phone. Red flag No. 2 is the advice to “allow us 2-6 days” to process the refund request; that’s impossible warp speed for any federal agency.

To make this dream come true, all you need to do is click on the 40-character link that doesn’t have “IRS” in it anywhere and give these faceless folks your bank account number (so they can drain it, not send your money). While these scams take many forms, such a request is ALWAYS a red flag warning and should ALWAYS be ignored.

Also tempting around tax time are the outfits that promise to file your forms electronically and get you a refund in record time, all at a rock-bottom price. Think you get what you pay for? If that electronic form is found lacking by the IRS computers that scan incoming returns, it will be sent back to you – probably with only an error code and not even a courtesy e-mail from the friendly filers who took your $9.95 and never looked back.

One taxpayer (not a Northeast CONTACT client) had this happen and downloaded 130 pages of IRS rejection codes to find the ones that applied. After deciphering the code, he found this “bargain” form wouldn’t allow him to make the needed changes!

If you file electronically, the IRS suggests that you use reputable tax preparation software or services; if possible, get a recommendation from someone you know and trust. If you buy tax preparation software, make sure it will handle all the forms you’ll need. And we strongly urge you to keep copies, paper and electronic, of everything you send to Uncle Sam.

Consumer Forum is a collaboration, now in its 30th year, of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual and business memberships are available at modest rates. Interested and motivated prospective volunteers are always needed and welcomed to apply to help with our mission. For assistance with consumer-related issues, including consumer fraud and identity theft, or for more information, write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor ME 04402-1329.