WCNC Where’s the Money: This tax season, be on the lookout for scams

Watch the interview on WCNC.

Author: Anna King

Published: 5:38 PM EST February 16, 2024

CHARLOTTE, N.C. — Tax officials say everyone should be on the lookout as tax scammers are always on the hunt.

“Unfortunately a lot of times paid preparers pray on those that really can afford to have that done and a lot of people are like ‘Oh I’m not really paying,’" Community Link President Tameka Gunn said. "No, you are, it’s coming out of the back end.”

Certified tax filers are urging people not to use tax preparers who promise higher returns: If it’s too good to be true, it usually is. They also said not to use a tax filer who’s not in compliance with the IRS and not to fall for ads promising free money.

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Community Link is just one organization offering free tax services to people in the Charlotte area, as a preventative measure to keep people from getting scammed.

“You don’t have to spend money to get your taxes prepared," Gunn said. "The free services we provide are open to anyone in Mecklenburg County and Union County that has a household income of 64,000 or less – so that is a lot of people in our community."

Some people who have fallen victim to this scam said they now look out for the signs and take extra precautions.

“That’s how I gauge if something’s legit," scam victim Ambrose Powell told WCNC Charlotte. "A lot of this stuff is too good to be true. If you’ve been scammed before, you kind of look for the curse. You get scammed and now they have your account information."

Another scam victim, Hazael Gonzalez said he now has to take extra steps when filing his taxes.

“Now every time I go to fill out my taxes I have the IRS send me a little pin that I have to submit whenever I fill out any of my tax forms,” Gonzalez said.

The Better Business Bureau said they’ve already seen an uptick in scam reports this tax season.

Community Link will be hosting a free “Tax-A-Thon” event on Feb. 17 and April 6 from 10 a.m. to 2 p.m. at the Community Link offices located at 601 E 5th Street, Suite 500, Charlotte, NC.

Other times that people can file with Community Link are Mondays, Wednesdays, and Thursdays from 5:30 p.m. to 8 p.m. through the end of tax season. No appointment is needed.

Here are some tips to avoid becoming a victim of a scam:

  • Emotional appeal - Any pitch that ratchets up your emotion will inhibit your rational judgment.

  • Sense of urgency - You MUST act now, or else.

  • Request for unorthodox payment - Gift cards, prepaid credit cards, wire transfers, etc.

  • Explanations that don't ring true - If your new “landlord” can’t show you the inside of the house, that could be because they don’t own it.

  • You won, now pay up - It’s not a prize if you have to pay for it. Taxes, fees, shipping, whatever.

  • Too good to be true - That’s because it’s not true. Sorry, your long-lost relative didn’t die, leaving you millions. That car you bought online for a third of its Kelly Blue Book value doesn’t really exist. The son of a billionaire diamond broker didn’t “swipe right” on you and fall instantly in love. That work-at-home job paying you hundreds of dollars an hour for stuffing envelopes isn’t real.

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