New York Attorney General Letitia James has alerted residents to avoid tax preparation scams ahead of Tax Day on April 15. James warns against common fraud tactics, urging New Yorkers to utilize the free Direct File service. This service enables eligible taxpayers to file their federal and state taxes without cost, potentially saving the average taxpayer about $260.
“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.”
James outlined several scams, including fraudsters demanding payments through prepaid credit cards or gift cards and false claims about mistaken IRS refunds. She emphasizes that legitimate notices will always be in writing, not through unsolicited phone calls, emails, or texts.
The New York Tax Department estimates that 3.4 million residents are likely eligible for the Direct File service. Those who earned up to $200,000, or $250,000 if filing jointly, may qualify for this service. To use Direct File, taxpayers should confirm eligibility for both New York State and IRS Direct File, starting with the federal return before moving on to the state taxes.
Additional precautions provided by Attorney General James include verifying the legitimacy of tax preparers through the Better Business Bureau, ensuring preparers include their Preparer Tax Identification Number on the returns, and paying attention to any extra fees.
New Yorkers who suspect they may be victims of scams are encouraged to report to the Office of the Attorney General by submitting a complaint online or by phone.