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Every Day, citizens of Nevada and others throughout the country face the potential for various frauds and scams. Below are some of the top scams facing the citizens of our State.

 

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IRS Rebate Check Scam Aler

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IRS Abusive Tax Return Preparers Alert

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Time-Share Owner Alert

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Credit Alert

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Foreclosure Alert

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She (or He) fell in love with you on the internet and wants to marry you soon.

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You’re renting an apartment or home and placed an ad on a web site such as Craig’s List or E bay.

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You won the Royal Canadian Lotto.

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You sell something on an auction or other web site.

 

IRS REBATE CHECK SCAM ALERT

 

The IRS has cautioned taxpayers to be on the lookout for a scam using the rebate checks from the economic stimulus package as bait. The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft.

Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scamsters to act quickly and cover their tracks before the victim becomes aware of the theft.

For more information and to learn how to protect yourself, go to http://www.irs.gov/newsroom/article/0,,id=178061,00.html. Any information or complaints can be given to the Las Vegas IRS-CI Fraud Line at (702) 868-5089.

 

Alert Logo IRS ABUSIVE TAX RETURN PREPARERS ALERT

 

Taxpayers should be very careful when choosing a return preparer. You should be as careful as you would in choosing a doctor or a lawyer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.

 
Dishonest return preparers use a variety of methods to formulate fraudulent and illegal deductions for reducing taxable income. These include, but are not limited to, the following:
 

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Preparing fraudulent Schedule C, Profit or Loss from Business, claiming deductions for expenses that have not been paid by the taxpayer to offset Form 1099, Miscellaneous Income, or income earned from outside employment,

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Including false and inflated itemized deductions on Schedule A, Itemized Deductions, for:
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charitable contributions medical and dental expenses

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Claiming false Schedule E, Supplemental Income and Loss, losses

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Claiming false dependents

 

Helpful Hints

 
IRS Criminal Investigation (CI) reminds you;
 

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 Taxpayers are responsible for the accuracy of all entries made on their tax returns, which include related schedules, forms and supporting documentation. This remains true whether the return is prepared by the taxpayer or by a return preparer.

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Be careful in selecting the tax professional who will prepare your return. Some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional are:
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Avoid return preparers who claim they can obtain larger refunds than other preparers.

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Avoid preparers who base their fee on a percentage of the amount of the refund.

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Use a reputable tax professional that signs your tax return and provides you with a copy for your records.

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Consider whether the individual or firm will be around to answer questions about the preparation of your tax return, months, even years, after the return has been filed.

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Never sign a blank tax form.

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Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?

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Tax Evasion is a crime, a felony, punishable up to 5 years imprisonment and a $250,000 fine.

 

When in doubt, check it out! Taxpayers hearing claims from preparers offering larger refunds than other preparers are encouraged to check it out with a trusted tax professional or the IRS before getting involved. For more information or to file a complaint, call the IRS-CI Fraud line at (702) 868-5089.
 

TIME-SHARE OWNER ALERT

As a time-share owner you may be contacted by a person or company either wanting to buy your time share or claiming to have a ready buyer. The catch is that these people or companies want you to pay money up front for this service.

Please be advised that in the normal real estate transaction, the seller does not pay any money for commissions, title search or anything else until the actual close of escrow and then through a reputable escrow company only. If you are approached with one of these proposals, please make sure that you do not send money or give out a credit card number in advance of the closing with a reputable escrow company. If the proposal is real, the contact should be more then happy to wait for the close of escrow to get his money.

  CREDIT ALERT

People with good credit are being approached and asked if someone can “use” their good credit to purchase a property. The person with the good credit is offered from $5,000 to $10,000 for this service. The person with good credit is promised that the mortgage and taxes will be paid and that after a period of time, typically one to two years, that the other person will re-finance or sell the property and share profits.

  1. First of all, if you agree to this scheme you may be committing LOAN FRAUD. This is very serious.

  2. Secondly, the loan is in your name. The person approaching you will generally have you sign many papers, one of which gives that person the ability to rent or even sell the property. What has happened is that the person collects rents, option money and any other income while not paying the mortgage or up-keep of any type on the property. Eventually the property mortgage, under your name, goes into default and foreclosure. This will ruin your credit and possibly subject you to civil and even criminal problems.     

FORECLOSURE ALERT

If your property mortgage is delinquent and you are facing foreclosure, you may be contacted by a person or company willing to take the property off your hands to save your credit. While some of these companies are actually good and do help, others are not.

  1. Do not sign anything that you do not understand or that is blank.

  2. Go through a reputable escrow company to make sure that your mortgage(s) is paid off to the satisfaction of the lender(s).

  3. If you do not do this, you may find that the person or company has title to or owns your property, yet the mortgage is still in your name.

  4. The person or company pays nothing to the mortgage(s) holder. The foreclosure happens. Your credit is ruined while the company “saving” your credit has made money from your property by renting it until the foreclosure.

 

She (or He) fell in love with you on the internet and wants to marry you soon.
 It happens every day; you met someone online via a dating service, or perhaps in a chat room. Then, within just a short period of time, that person takes a liking to you and would love to be with you for the rest of their lives. One small problem! They just so happen to be living in over seas right now in Africa or Nigeria and as soon as you can help them get home with financial support, true bliss awaits.

What are the signs? 

1.      The person you met says they live in your area but just happens to be in another country.

2.      The person has an immediate financial hardship such as a medical condition or the inability to pay their hotel, or other financial crises and they need your immediate financial assistance.

3.      The person either asks you to wire them money, or will offer to send you a cashiers check or money order from their “employer” at which time they will ask you to cash the item at a check cashing store or deposit it into your bank and immediately wire them the funds back.

 

Don’t fall victim! Generally, if you have never met a person, then you shouldn’t be providing financial support to them. If a person on a dating service indicates they live in your area but just so happens to be out of the country and needing cash now, don’t send cash or cash the check, as it most cases it will be a fraud and you will be out the money.

You’re renting an apartment or home and placed an ad on a web site such as Craig’s List or E bay.

1)      The person wants to rent your property immediately but just happens to be moving from another state or country and has not yet arrived in town to meet you.

2)      The person sends you a bank check or money order for 2-3 times the amount you are asking for in a deposit.

3)      The person then asks you to hold the rental but send back the overage sent to you via wire transfer and gives you no reasonable explanation why they overpaid you on the deposit.
 

Don’t fall victim! If the person wants to rent your property, ensure that they are legitimate. Call references; verify with other parties that they are who they say they are. Never accept more then your asking for in a deposit and never send back a refund via wire transfer.

You won the Royal Canadian Lotto. 

1)      You receive an e mail asking to confirm certain information to collect your winnings from the Royal Canadian Lotto or other country Lottery. The person first approaches you via e mail and informs you that you have won a large amount of money.

2)      The person gets your address and sends you an official bank check or other type of check for a small portion of your winnings to cover certain costs or “taxes.”

3)      The Person asks you to go to a check cashing store or bank to cash or deposit the item. Once you do so, they instruct you to wire a portion of the money back to them at which time they will send you the “grand prize check.”

 
 Don’t fall victim! As the old saying goes, you can’t win if you don’t play. Random out of country lotteries are scams. No one will ever contact you and offer to send you partial proceeds. Never wire money to pay for taxes or other fees, as in all known cases, the check is counterfeit and you will be responsible for its repayment from the check casher or bank.

You sell something on an auction or other web site.

1)      The person who purchases your item is out of town or lives out of the country

2)      The person just has to have the item “now.”

3)      The person is anxious to pay you but doesn’t have pay pal or another known payment service.

4)      The person offers to send you a guaranteed “bank check” or money order and asks that upon receipt you immediately send them the merchandise.

Don’t fall victim! Scammers will send you a counterfeit check and ask you to send them your merchandise for sale. Once you deposit or cash the check, it may be returned counterfeit. Never send an item unless you’re sure the method of payment is valid. If you do accept a check or money order, give it at least 10 days to clear prior to shipping the item.

Source:  Robert Frimet, RMF Consulting Group, LLC – www.checkconsultants.com

               
 

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