In its annual “Dirty Dozen” list, the Internal Revenue Service (IRS) highlights common scams that target taxpayers. A particularly insidious threat involves groups masquerading as charitable organizations, especially following natural disasters or tragic events. These fake charities not only seek donations but also aim to gather sensitive information, posing a dual threat of theft and identity fraud.
The Threat of Fake Charities
Following disasters, it’s a common impulse to help those affected. However, the IRS warns that this is also a prime time for scammers to establish fake charities. These fraudulent groups exploit the generosity of well-meaning individuals, soliciting contributions through phone, email, or texts, and gathering personal and financial information that can be used for tax-related identity theft.
IRS Commissioner’s Statement
IRS Commissioner Danny Werfel emphasizes the cunning nature of these scams: “In these tragic situations, many people want to help, but con artists too frequently pose as charitable groups to take advantage of the situation.” Werfel advises taxpayers to resist pressure to donate immediately and to conduct thorough research before contributing to ensure the charity’s legitimacy.
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The Dirty Dozen Campaign
Since 2002, the IRS’ Dirty Dozen campaign has been instrumental in educating taxpayers about various scams. Although not a legal document, this annual list raises awareness about the top scams threatening taxpayers and the tax professional community, including those involving fake charities.
IRStaxsecurity Shares Dirty Dozen Scam Via Twitter on 25 April 2024, which is given below-
In the wake of disasters, scammers may operate bogus charities and solicit money or financial information by phone, email or texts. #IRS urges you to stay alert to this Dirty Dozen scam: https://t.co/5OSrmIghJF #TaxSecurity pic.twitter.com/lXvAWmgJsv
— IRStaxsecurity (@IRStaxsecurity) April 25, 2024
How to Verify a Charity?
To ensure donations reach legitimate charities, taxpayers can use the IRS’ Tax-Exempt Organization Search (TEOS) tool available on IRS.gov. This tool helps verify if a charity is an IRS-recognized tax-exempt organization. Other precautions include avoiding donations via gift cards or wire transfers, and always using checks or credit cards after confirming the charity’s authenticity.
IRS Tips and Recommendations
The IRS advises careful consideration before making donations. Donors should verify charity names and avoid sharing personal information like Social Security numbers or bank details. If a charity uses pressure tactics or requests unusual forms of payment, it’s likely a scam. The IRS also encourages the reporting of suspicious activities involving fake charities using Form 14242, available on the IRS website.
Conclusion
Staying vigilant and informed is crucial, especially during times when disasters prompt a surge in charitable giving. By spreading awareness and verifying the legitimacy of charitable organizations, taxpayers can protect themselves from fraud.
Visit IRS.gov for more resources and guidance on protecting yourself from tax scams. Sharing this information can help safeguard your community from these deceptive practices.
