Beware of Scammers Preying on Your Generous Nature The IRS and numerous other nonprofit agencies are warning Americans to be weary of scammers trying to take advantage of their generosity after major catastrophes like Hurricanes Florence and Michael. "We applaud our client's desires to want to help in times of crisis," says Steven Feinberg, CPA and owner of Appletree Business Services. "What we want to avoid is unnecessary stress and even criminal charges if that client makes a donation to a criminal organization instead of a truly reputable and worthy cause." Fraudulent schemes normally start with unsolicited contact by telephone, social media, e-mail or in person using a variety of methods.
What can you do? If you are a disaster victim and need information on tax relief or other disaster-related tax concerns, call the IRS Special Services Help Line at 866-562-5227. Details on accessing additional information can also be found on the disaster relief page on IRS.gov. Donate wisely. If you wish to donate, make sure they are real charities. You can verify the prospective charity, by visiting the IRS website at IRS.gov and using the Tax Exempt Organization Search feature. Here you will be able to find or verify qualified charities. How much goes to the charity? Before you click 'donate' take a minute to research the charity online. You can do this by searching on the charity's name plus key phrases like, "review", "compliant", "rating" or "scam". The consumer section of the Federal Trade Commission's website also recommends the following organizations to view reports and ratings for nonprofits:
Know the Scammers M.O. Scammers and criminals always have a pattern to their schemes. Look out for some of the following tell-tale signs and just say, No!
You've been scammed, now what? If you have made a donation to what you now believe is a scam, take action. You can report scams to your local police, the FTC.gov/complaint, and your state charity regulator. Write down any information you can remember about what the organization asked for, their phone number or website address, and details about your conversation.
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Copyright 2018 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire.
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