IRS Warns of Fake Charities
In its recent Dirty Dozen tax scams, the IRS warned of groups who are posing as legitimate charitable organizations in order to take advantage of the generosity of unsuspecting donors. The IRS Commissioner Danny Werfel warned: “We see repeated instances of scammers using major disasters as a way to prey on well-meaning taxpayers . . . . In these tragic situations, many people want to help, but con artists too frequently come in posing as charitable groups to take advantage of the situation, stealing money and personal information. People should remember it’s important to never feel pressured to give donations immediately. They should do some research and only donate to clearly established charities that help victims.”
Here are several tips from the IRS to help you avoid fraudsters:
Don’t give in to pressure. Scammers often create situations to get people to make payments. Genuine charities are always grateful for donations. Donors should take their time and research before making a charitable contribution.
Exercise caution when making donation payments. Avoid any charity that requests gift card numbers or wire transfers. It’s better to pay by credit card or check after ensuring the charity’s authenticity.
Verify the legitimacy of the charity. Scammers often use similar-sounding names for charities to confuse people. Before donating, potential donors need to ask the fundraiser for the charity's name, website and mailing address so they can independently verify its authenticity. Use the special IRS TEOS tool to verify if an organization is a legitimate tax-exempt charity.
Avoid sharing too much information. Scammers are always on the lookout for both money and personal data. Never disclose Social Security numbers, credit card numbers or Personal Identification Numbers. Only provide bank or credit card details after confirming the charity's legitimacy.
Generosity is a great thing. But be smart and be safe. If you want to read more tips for smart giving you can check out a prior post here.
This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.