New York Attorney General Letitia James on Tuesday issued a consumer alert urging New Yorkers to avoid common tax preparation scams and check if they are eligible for the free Direct File service to file their taxes before Tax Day on April 15.
James said the Direct File program allows qualifying taxpayers to file their federal and state taxes online at no cost, saving the average New York taxpayer about $260 in tax preparation fees.
In addition, Attorney General James released a series of tips to help taxpayers recognize scams and frauds associated with tax season.
“While tax season can be stressful, New Yorkers deserve peace of mind knowing that they’ll be protected from scams and won’t have to pay hundreds of dollars just to file their taxes,” said Attorney General James. “The Direct File program is a safe and easy way to file taxes for free and save hundreds of dollars.
“I encourage everyone to be on the lookout for fraudsters who try to take advantage of tax season to cheat New Yorkers, and report any suspected frauds to my office,” she added.
James said common fraud tactics that New Yorkers should be on the lookout for include: “Fraudsters who claim you owe past tax debts and insist that you pay using a prepaid credit card or gift card. Legitimate government officials and agencies do not seek to collect debts through these means;
“Being told that your legitimate tax refund from the IRS was a mistake, and, therefore, you must return it. If you owe money, you will receive a legitimate notice in writing that identifies the agency and the reason you owe money, not a phone call, email, or text message;
“Fraudsters who make false promises of free tax preparation services, only to deceive people into paying for those services;
“Tax preparers who deceptively claim to get you your tax refund quicker and then charge you high interest rates and fees; and Any unsolicited calls, text messages, or emails asking for personal information or to verify financial account information.”
The New York Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year. New Yorkers with 2024 wages of up to $200,000, or $250,000 if filing a joint return, may qualify.
James urges the public to take the following steps to find out if you qualify and use Direct File: “Check if you are eligible for New York State Direct File to file your New York State personal income tax return;
“Check if you’re eligible for IRS Direct File to file your federal personal income tax return; and if you are eligible, begin your federal return on the IRS Direct File website.
“After you file your federal return, you will be seamlessly directed to New York State Direct File to file your New York State taxes.”
In addition to using Direct File, Attorney General James offers the following tips for New Yorkers to protect themselves during tax season: “Legitimate government organizations will never threaten arrest or deportation for failure to pay a debt and will never insist that consumers pay a debt only via a prepaid credit card, gift card, or wire transfer;
“Only use established companies for tax-preparation services, and always review the entire tax return before signing it; and
“If using a tax preparer, check the person’s qualifications and history through the Better Business Bureau. You should ensure that they sign the tax form and include their Preparer Tax Identification Number (PTIN) upon completion.
“Also ensure that you are given a statement of the tax services provided and pay close attention to any extra fees or interests. For more information, please consult New York’s Consumer Bill of Rights Regarding Tax Preparers.”
Any New Yorker who suspects that they are a victim of a scam is encouraged to report it to the Office of the Attorney General (OAG) by submitting a complaint online or calling 800-771-7755.
