Beware of e-mail, texting tax scams, IRS warns

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Scam artists are increasingly using technology to rip off people this tax season, IRS officials warn, and local residents have been targets.

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Chris Owen says Instant Tax Service never gave him a loan he requested and charged him more than promised to prepare his taxes. He filed a complaint against the Peach Orchard Road business.  SARA CALDWELL/STAFF
Chris Owen says Instant Tax Service never gave him a loan he requested and charged him more than promised to prepare his taxes. He filed a complaint against the Peach Orchard Road business.

This tax season, an e-mail scam affected Georgia residents in Augusta, Thomaston, Lithonia, Con­yers and Moultrie. A bogus e-mail told recipients they would be penalized up to $10,000 for not filing their taxes by a false deadline of Jan. 31. A link in the e-mail goes to a phony Web site that appears to be the official site of the IRS and asks for personal or financial information.

“The scams have been more creative this year, and there’s been more of them. One of the things I’ve never seen before is they’re texting individuals now,” IRS spokesman Mark Green said. “The IRS does not initiate contact with taxpayers by e-mail, text or social media to request personal or financial information.”

Georgia residents in Macon and Columbus have been targeted this year by a texting scam. Con artists are also using phone scams and posing as IRS employees to “coerce people into giving out their Social Security number and financial information,” Green said.

Tax-related identity theft also has been on the rise, he said. Peo­ple have been selling Social Secur­ity numbers that were stolen from restaurants, retail stores and leasing offices. Some are even selling their dependents’ Social Security numbers for $500 to $1,000 each to friends or tax preparers because they have exceeded the amount of dependents for which they can receive credit.

Some tax preparers have been inflating taxpayers’ refunds by placing dependents that don’t belong to them on their tax return. Then the preparers keep some of the money for themselves.

Identity theft

Kelvin Collins, the president and CEO of the Better Business Bureau of Central Georgia and the CSRA, said his office has received complaints concerning identity theft. Consumers have gone to get their taxes filed, only to find out that someone has used their identity to file taxes.

“We’re seeing an increase in that this year,” Collins said. “Many times it’s someone they don’t know that has stolen their Social Security number, filed taxes, have gotten a refund and can’t be found. It’s easy now. If you’ve got somebody’s Social Security number, you can file online, have the money deposited into an account, get the money, close the account and be gone.”

Fees charged by tax return preparers are also a problem, Green said. A number of complaints have been filed with the Better Business Bureau against the Instant Tax Service franchise on Peach Orchard Road, which is under investigation by the Governor’s Office of Consumer Protection.

The complaints generally involve people getting estimates on their taxes, then getting a call the next day saying their taxes have been filed when they weren’t aware they had given the authorization to do so, Collins said.

“Also, once the taxes are filed, they’re being charged exorbitant fees,” he said. “We’ve heard from several consumers that say they were quoted a price of $200 to $300 and when they went back to pick their taxes up, they had deducted a lot more from that. I have one consumer where they had deducted fees of $1,300.”

The Better Business Bureau is not an enforcement agency, so Collins’ office sends the complaints to the state consumer protection office, which enforces the Fair Business Practices Act of 1975. The BBB also reports the complaints to other consumers, he said.

“We have an open investigation,” Shawn Conroy, a spokesman for the consumer protection office, said of Instant Tax Service on Peach Or­chard Road. “We’re in the beginning stages of our investigation, so I don’t want to characterize the complaints or the behavior until our investigation is through.”

Green said he can’t comment on the tax matters of businesses or individuals because of the IRS’ disclosure policy.

Calls to Instant Tax Service in Augusta and its corporate office have not been returned.

Local complaints

Appollina Bert, of Augusta, is among those who have filed complaints against Instant Tax Service. After seeing a TV ad, she and her sister visited the business Jan. 2 to apply for a loan. They were both approved for $300 and gave the business a copy of their last paycheck stubs, Bert said. If they didn’t repay the loan before 7 p.m. Jan. 16, the company would request their W-2 forms and file their taxes, charging $450, she said.

When Bert and her sister came back to repay the loan at about 5 p.m. Jan. 16, they learned Instant Tax Service had filed their federal income taxes without their knowledge, telling them they were randomly selected for an IRS test run to make sure their systems were working properly.

“I said, ‘You don’t even have my W-2s. You don’t have any of my information,’ ” Bert said.

She was also told she would have to pay a $558 processing fee, rather than $450, for having her taxes done. A worker told Bert they quoted her the wrong fee initially because of a computer glitch.

After not receiving assistance from the corporate office, Bert contacted the Better Busi­ness Bureau. She and her sister were refunded their money, but Bert still has to make corrections to her federal taxes and needs to file her state taxes and an amendment.

“There were a lot of people that contacted me and said this was not the first year that this had happened,” Bert said. She said she heard
of fees ranging from $300 to $600.

Christopher Owen, of Augusta, filed a complaint against Instant Tax Service after visiting Jan. 10, and he is still waiting on the business to repay his money.

He saw the company’s TV ad saying people could get up to a $1,000 loan. He never received the loan and was charged a $609 fee for getting his taxes done, though he was told he would be charged $250, Owen said.

When he received his refund check after a delay, the business had deducted $609. Owen was told he didn’t receive the loan because it was the first year he had used their services. His paperwork states that he received $50 within the first 10 minutes and $1,000 within 24 to 48 hours, he said.

“That’s not the case. The copy they gave me is false,” Owen said.

It’s important to find a knowledgeable, qualified tax professional, Green said. All tax professionals must have a Preparer Tax Identification Number. People should avoid anyone who asks them to sign a blank tax form, and they should use only a professional who signs their tax return, includes his or her tax ID number, and provides a copy for their records.

They should also determine whether anyone has filed complaints against the tax preparer with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys, he said.


• If you believe your tax records have been affected by identity theft, consult the Taxpayer Guide to Identity Theft at

• People who receive a notice from the IRS should respond immediately to the name and number on the notice. If you believe someone might have used your Social Security number fraudulently, notify the IRS when responding to the notice. You will also need to complete the IRS Identity Theft Affidavit, Form 14039.

• For those who haven’t been contacted by the IRS but believe they have been the victim of identity theft that affects their taxes, call the IRS Identity Protection Specialized Unit at (800) 908-4490

• Victims of identity theft who have contacted the IRS and not reached a resolution should also call the Identity Protection Specialized Unit at (800) 908-4490.

Source: Mark Green, IRS spokesman


Tax-related scams are on the rise. Scam artists are using e-mails, text messages, social media and phone calls to mislead taxpayers into filing false claims for tax credits or rebates.

Here are the top 12 tax scams for 2012, according to the IRS:

1. Identity theft

2. Phishing

3. Return preparer fraud

4. Hiding income offshore

5. “Free money” from the IRS and tax scams involving Social Security

6. False/inflated income and expenses

7. False Form 1099 refund claims

8. Frivolous arguments

9. Falsely claiming zero wages

10. Abuse of charitable organizations and deductions

11. Disguised corporate ownership

12. Misuse of trusts

Source: Mark Green, IRS spokesman

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david jennings
david jennings 02/25/12 - 05:13 pm
I believe it is safe to say,

I believe it is safe to say, this is a sorry world.

seenitB4 02/25/12 - 05:26 pm
Never ever give your personal

Never ever give your personal info. over the phone unless you called them.....then only give what is necessary.

tanbaby 02/25/12 - 06:20 pm
why would anyone pay someone

why would anyone pay someone $600 plus to file their taxes??? unless you file the long form, it is like falling off a 5th grade math teacher taught us how to do taxes.....and all you need is the numbers off your W-2 for the online sites and it figures it for you.....

Riverman1 02/26/12 - 08:39 am
I found a good deal. This

I found a good deal. This Nigerian company does my taxes very cheaply. I fax their representative, a Mr. George Bush, all my information, including bank passwords so they can see everything. They guarantee me a huge refund and also buy me a ticket in the Nigerian Lottery. If I win they will take the funds out of my bank account to pay those taxes for me and then fax me a check.

Retired Army
Retired Army 02/26/12 - 10:33 am
Careful there RM. Some of the

Careful there RM. Some of the posters on here are just gullible enough to believe you.

JRC2024 02/26/12 - 11:59 am
Most go to these types of

Most go to these types of places so they get the unearned income credit. There was a lawyer in Martinez that did that and I cannot remember his name but I remember a person that worked for me up there and he would do the math for them and give them cash but he would keep I think 1/3 of the refund. They would sign a paper to let the IRS deposit the refund in his checking account. I asked them why they would not wait for the check to come to them. They wanted the money then. All they had to do was wait two weeks for 1/3 more.

allhans 02/26/12 - 01:32 pm
I would think there would be

I would think there would be some controls over this. The government make laws that keep tabs on other businesses, so why not tax services.
If you need a dependent so that you can get the $3500. "free money" they will help you find one.

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