The IRS has published the most recent in a series of news releases that highlight the top twelve tax-related scams for 2021. This release adds five new entries to this list. All of these scams prey upon people’s natural good will to either manipulate people into doing something illegal or to allow the scammers to take something from people. Here is a quick summary:
The first scam mentioned is when a scammer creates a fake charitable organization, especially after there is a high profile disaster like the recent Surfside Condo collapse, asking you for a charitable contribution to help victims of the disaster, when all you are doing is lining the scammer’s pockets. If you do get a request for a donation, check out the organization on the IRS Tax Exempt Organization Search website to see if it is legit.
Here are some tips from the IRS about fake charity scams:
- Individuals should never let any caller pressure them. A legitimate charity will be happy to get a donation at any time, so there’s no rush. Donors are encouraged to take time to do the research.
- Potential donors should ask the fundraiser for the charity’s exact name, web address and mailing address, so it can be confirmed later. Some dishonest telemarketers use names that sound like large well-known charities to confuse people.
- Be careful how a donation is paid. Donors should not work…