MONTGOMERY, Ala. — Alabama Attorney General Luther Strange (R) warned Alabamians to be on the lookout for income tax scams this season that could lead to identity theft. In a post on his official website, Strange noted what Alabamians should watch out for and offered tips to keep from falling prey to certain tax preparers with potentially deceptive offers.
“Between late January and early April, when almost all American households have to file an annual tax return, can be open season for unscrupulous tax preparers whose objective is to harm consumers’ bottom line, and identity thieves attempting to steal tax refunds,” Attorney General Luther Strange wrote in a press release.
To avoid catastrophe, the Attorney General’s Office recommends that Alabamians take the following steps:
- • Do it yourself: You can file your own tax return electronically or on paper. Filing online is free with the IRS.
• Take advantage of free preparation if you qualify. Lower-income consumers can use free tax preparation software found at www.irs.gov through Free File. If your income is $54,000 or less, you can get free tax preparation assistance at a Volunteer Income Tax Assistance (VITA) location near you.
• Pay your tax preparer before filing – many preparers charge higher fees when deducting the cost of preparation from your refund. Avoid paying extra for this supposed convenience.
• Avoid refund advances – no one can guarantee to obtain your refund from the IRS faster than you can. Tax refund advances are actually loans from your preparer, and like almost any loan, will cost you additional fees to receive.
• Consider direct deposit – if you file electronically and choose to have your refund directly deposited into your bank account, the IRS does not charge additional fees and is often able to provide your refund sooner.
If you think that theft may have already occurred, Strange offered a separate set of recommendations.
- • Contact the IRS immediately
• Place a fraud alert on your credit reports with: TransUnion, Experian, and Equifax
• Create an identity theft report at www.identitytheft.gov
• File a police report
