{"id":29434,"date":"2024-02-01T19:00:00","date_gmt":"2024-02-02T02:00:00","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/irs-warns-tax-filers-to-be-wary-of-fraud-now-that-2024-season-is-underway\/"},"modified":"2026-03-31T00:56:06","modified_gmt":"2026-03-31T06:56:06","slug":"irs-warns-tax-filers-to-be-wary-of-fraud-now-that-2024-season-is-underway","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/irs-warns-tax-filers-to-be-wary-of-fraud-now-that-2024-season-is-underway\/","title":{"rendered":"IRS warns tax filers to be wary of fraud now that 2024 season is underway"},"content":{"rendered":"\n

\"Ken
Ken & Sue\u2019s restaurant in Durango was raided Wednesday by the Internal Revenue Service\u2019s criminal investigations unit.<\/span>Shane Benjamin\/Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>

Tax season is just getting started and the Internal Revenue Service has a word of caution about preparers promising bigger tax returns than others: If it\u2019s too good to be true, it probably is.<\/p>\n

IRS Criminal Investigation, the IRS\u2019s law enforcement branch, found $5.5 billion in tax fraud and initiated 1,409 investigations into tax crime in fiscal year 2023, according to the IRS. Six hundred fifty-five defendants were sentenced, including former Brighton resident Steven Darbee, who was sentenced to 12 months and one day in federal prison for tax evasion.<\/p>\n

In February 2023, former Ken & Sue\u2019s restaurant owners Kenneth and Suzanne Fusco were sentenced<\/a> to five years of probation, six months of house arrest and 150 hours each of community service for tax evasion. They were each fined $25,000 as well.<\/p>\n

Jonathan Towle, assistant special agent in charge at in the IRS Criminal Investigation Denver Field Office, said two primary tax scams filers should be aware of are fraudulent preparers and email phishing scams.<\/p>\n

Although many certified public accountants and attorneys have formal credentials and education, tax return preparers are not required to have any formal education or credentials to prepare tax returns for clients, he said.<\/p>\n

Just like hiring a contractor to remodel a home or a mechanic to work on a car, Towle said people should do their due diligence by checking references and credentials before hiring a preparer, especially if they\u2019re promising bigger returns than anyone else.<\/p>\n

\u201cIf the reviews for the preparer are very brief, like they\u2019ve been preparing returns for the past two weeks only, and there\u2019s no history to them and they are cited as positive reviews because the taxpayers are enjoying very large refunds, that\u2019s usually a red flag,\u201d he said.<\/p>\n

He said big tax returns are short-term gains, but fraudulent filings carry long-term results. Namely, filers are responsible for their own tax returns, not hired preparers. Which means if one\u2019s filing isn\u2019t accurate, the individual is on the hook.<\/p>\n

\u201cYou\u2019ll probably be audited. And if you\u2019re audited, you\u2019re gonna have to pay that money back with interest in penalties,\u201d Towle said. \u201cSo, that short term gain of getting that bigger refund than you normally do is offset pretty quickly with the pain of an audit.\u201d<\/p>\n

Joseph Simms, public affairs officer in the Denver field office, said tax codes apply to everyone, and preparers don\u2019t have \u201cinsider knowledge\u201d or effective tricks to net bigger returns.<\/p>\n

Tax return documents can be confusing to many people, but Towle said people really should take the time to review and understand their tax returns when they get them back from preparers.<\/p>\n

Fraudulent preparers are known to invent fake business deductions or fabricate fake businesses entirely in business tax returns to write off as large losses and offset income earned, he said.<\/p>\n

Upon reviewing one\u2019s tax return, it\u2019s wise to look for anything uncharacteristic of oneself.<\/p>\n

\u201cAlways understand when you\u2019re thumbing through that tax return at the end, that anything that seems unusual or out of character for yourself is probably wrong,\u201d Towle said. \u201cI would question that with the preparer right away or go find another preparer.\u201d<\/p>\n

Another big sign one is dealing with a fraudulent preparer is if they refuse to sign the tax return upon completing it or they don\u2019t have a preparer identification number.<\/p>\n

\u201cThat\u2019s a major red flag that there\u2019s probably problems with that return, and they don\u2019t want to be associated with it,\u201d Towle said.<\/p>\n

The IRS often investigates preparers when batches of tax returns contain patterns of fraud, and preparers can find themselves in jail or prison if they\u2019re found guilty. However, it\u2019s still an individual filer\u2019s responsibility to correct a filing and pay penalties and interest because of the fraud, he said.<\/p>\n

Reporting fraud<\/div>\n

If one does encounter a fraudulent preparer, Towle said there are several ways to report them to the IRS.<\/p>\n

People can call an IRS field office directly, such as the Denver field office responsible for IRS criminal investigations in Colorado, Wyoming, Montana and Idaho. People can also file online reports at irs.gov<\/a>.<\/p>\n

Phishing scams, which have become more sophisticated over the years, can be reported at phishing@irs.gov<\/a>.<\/p>\n

Towle said common scams involve an email, phone call or text message claiming the IRS will threaten to arrest the person being scammed if a payment isn\u2019t received in a certain amount of time.<\/p>\n

\u201cThe IRS will never telegraph via electronic email or text messages that they\u2019re going to arrest you,\u201d Towle said. \u201cThat\u2019s not going to happen.\u201d<\/p>\n

Other scams involve the fraudster posing as a CPA the individual has used for years. Such tactics include presenting as local tax preparers, not just nationwide chains with recognizable brands.<\/p>\n

As for fraudsters posing as trusted tax preparers, who may send a seemingly innocent \u201cclick here\u201d email with a hyperlink saying they\u2019d like to get an early start ahead of tax season, the best response is to contact the preparer directly via their official website or by phone.<\/p>\n

\u201cAsk if they\u2019re actually sending out those emails before you blindly start sending your tax information through a link that you ultimately are giving it to the fraudsters,\u201d Towle said.<\/p>\n

He said fraudulent activity is abound throughout tax season, but it starts picking up even more in March.<\/p>\n

Taxes and filing extension requests are due by April 15.<\/p>\n

cburney@durangoherald.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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