Watch out for tax season scams

Submitted by Edward JonesPrint Story | Email Story
It's that time of year when we do our taxes — but it's also the same time that tax scammers go to work. What scams should you watch for — and how can you avoid being victimized?
 
Sadly, the list of scams is pretty long, including demands for payment or requests for "additional information" pertaining to your tax refund, in which the sender asks for your Social Security number and other personal information. These scam emails can look quite official, often incorporating the IRS logo. You might also receive scam text messages containing bogus links claiming to be the IRS website or an online "tool" that can help process your refund faster.
 
But keep these points in mind:
 
  • The IRS generally won't contact you by phone and won't contact you by email, text messages or social media channels to ask for personal or financial information. The IRS begins most correspondence to taxpayers through regular mail delivered by the U.S. Postal Service.
  • The IRS won't call to demand you make an immediate payment through a prepaid debit card or wire transfer. If you owe taxes, the IRS generally will mail you a bill. And the IRS won't threaten to bring in the police or another law enforcement group to arrest you for not paying your taxes.
In general, be extremely skeptical about any type of communication purporting to be from the IRS that sounds bullying or over-inquisitive — and certainly don't give out any personal or financial information. But these fake messages aren't the only tax-season scams out there. You might even receive a direct deposit from what appears to be the U.S. Treasury Department — but if you weren't expecting it, something's likely not right. This payment could be a sign that a fraudulent tax return was filed in your name, and it might be followed by a communication from a supposed IRS agent requesting this overpayment be sent to them. If this happens to you, you'll want to contact the IRS right away, and you could also ask your bank to return the deposit to the government.  
 
Other scams don't claim to originate directly from the IRS, as scammers pretend to be from real or imaginary tax organizations. For example, you could get a message from the Taxpayer Advocate Service, an independent organization within the IRS, but this agency won't contact you without a legitimate reason. Or you could receive a message from the nonexistent "Bureau of Tax Enforcement." Your best bet is to delete these messages immediately or send them to your spam folder.
 
Not all tax season scams originate from fraudulent IRS representatives or fake agencies. You also need to be careful about whom you hire to prepare your taxes. If possible, get a recommendation from a trusted friend or family member. And keep in mind that a legitimate tax preparer must have a valid Preparer Tax Identification Number and must sign your tax return. If someone doesn't have this number or is reluctant to sign your return, it may well be a sign that this individual is a "ghost preparer" who only wants to pocket your fee.
 
Tax scammers are, unfortunately, here to stay — but remaining vigilant can help you keep them from causing problems for you in this tax season and all the ones in the future.
 
This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information, see This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information go to www.edwardjones.com/rob-adams.
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Clarksburg Gets 3 Years of Free Cash Certified

By Tammy DanielsiBerkshires Staff
CLARKSBURG, Mass. — Town officials have heaved a sigh of relief with the state's certification of free cash for the first time in more than three years.
 
The town's parade of employees through its financial offices the past few years put it behind on closing out its fiscal years between 2021 and 2023. A new treasurer and two part-time accountants have been working the past year in closing the books and filing with the state.
 
The result is the town will have $571,000 in free cash on hand as it begins budget deliberations. However, town meeting last year voted that any free cash be used to replenish the stabilization account
 
Some $231,000 in stabilization was used last year to reduce the tax rate — draining the account. The town's had minimal reserves for the past nine months.
 
Chairman Robert Norcross said he didn't want residents to think the town was suddenly flush with cash. 
 
"We have to keep in mind that we have no money in the stabilization fund and we now have a free cash, so we have now got to replenish that account," he said. "So it's not like we have this money to spend ... most of it will go into the stabilization fund." 
 
The account's been hit several times over the past few fiscal years in place of free cash, which has normally been used for capital spending, to offset the budget and to refill stabilization. Free cash was last used in fiscal 2020.
 
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