11/30/2021
National Tax Security Awareness Week, Day 2: Giving Tuesday reminder that scammers can use fake charities to get sensitive information
The Internal Revenue Service and Security Summit warned taxpayers to beware of scammers using fake charities to get money as well as sensitive financial and personal information from victims.
This warning comes on day 2 of National Tax Security Awareness Week, now in its sixth year. and Giving Tuesday, which marks a special day as the holidays approach and people give to their favorite causes through charitable organizations. Scammers can take advantage of this by setting up fake charities to trick unsuspecting donors into providing not only money, but also their sensitive information.
The Security Summit urged people to make sure they are giving to a legitimate charity. This can help protect taxpayer’s personal and financial data and help prevent tax-related identity theft by using the IRS Tax Exempt Organization Search Tool.
This is Day 2 of now in its sixth year. The IRS along wish state tax agencies and the nation's tax industry are working together as the Security Summit during National Tax Security Awareness Week and providing tips to help protect people against identity theft and safeguard sensitive tax information that criminals can use to try filing fake tax returns and obtaining refunds. This is part of a week-long series of tips to raise awareness about identity theft.
The combination of the holiday shopping season, the upcoming tax season and the pandemic create additional opportunities for criminals to steal sensitive information. People should take extra care while shopping online or viewing emails and texts.
The Summit partners remind taxpayers to be on the lookout for scammers and identity thieves who set up fake organizations to take advantage of the public's generosity. Scammers take advantage of tragedies and disasters.
Scams requesting donations for disaster relief efforts are especially common over the phone. Taxpayers should always check out a charity before they donate, and they should not feel pressured to give immediately.
Tips to avoid fake charity scams:
Individuals should never let callers 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 their own research.
Confirm the charity is real. Potential donors should ask the fundraiser for the charity's exact name, website and mailing address so they can confirm it later. Some dishonest telemarketers use names that sound like well-known charities to confuse people.
Be careful about how a donation is made. People shouldn't work with charities that ask for donations in the form of numbers from gift cards or by wiring money. Those are scams. It's safest to pay by credit card or check after researching the charity.
While people who give money or goods to a charity may be able to claim a deduction on their federal tax return and reduce their taxable income, in order to receive that deduction, the donation must be made to a qualified charity - another reason to check the status of a charity using the IRS Tax Exempt Organization Search tool.