Tax Time 2010: Be Wary of Tax Cons and Tax Scammers

Tax Season is back in full swing. While a lot of the free online take services like E-File won't be in commission until Mid January, the Tax Scammers and schemers are out early this year. Be on your guard, and remember the golden rule:

If it sounds too good to be true, it probably is!

The IRS advices people to Seek professional advice from the IRS or a Tax Professional before you subscribe to any scheme that offers exemption from your obligation as a United States Citizen to pay taxes.

How Do You Report Scam Activity:

I'm surprised at the growing number of people who ask me this question every year. If you suspend a company or individual of not complying with tax laws, report their activity using IRS Form 3949-A.

Type "Form 3949-A" into the IRS Search Bar on www.irs.gov. Fill out the form, them print it. Once it's filled out, mail it to:


Internal Revenue Service
Fresno, CA 93888


You're not required to use Form 3949-A, however. You can send a letter to the address above. But if you send a letter, include the following information:


- Name and address of the person you are reporting

-The taxpayer identification number (social security number for an individual or employer identification number for a business) if you have it

-A brief description of the alleged violation, including how you became aware of or obtained the information

-The years involved

-The estimated dollar amount of any unreported income

-Your name, address and daytime telephone number

It helps the IRS to identify yourself, but you won't be required to. The IRS will keep your identity confidential.

Keep an eye out don't trust any e-mails that claim to come from The IRS. The IRS never sends e-mails directly to taxpayers. Additionally, if a Tax Company, Professional, or Preparer asks for your Credit Card or Bank Information over the phone, hang up. These companies could be scammers that are only after your money.