MADISON, WI (WTAQ) – Tax season is upon us and state consumer protection officials want to make sure that you’re not scammed by the folks entrusted with helping you file.
The Wisconsin Department of Agriculture, Trade and Consumer Protection says there are 2 issues which stand out when preparing to file your tax return.
The first is make sure you have all your necessary documents and the second is to find a company you can trust to help file your taxes.
“By and large, Wisconsin tax preparation businesses are legitimate and provide an extremely valuable service to consumers,” says Division Administrator for Trade and Consumer Protection Frank Frassetto. “A handful of shady businesses pop up each year, however, collecting personal information under false pretenses or secretly filing customer’s tax returns and stealing from the refund.”
Officials say a common type of tax and loan scam involves tax preparation businesses filing returns on behalf of consumers without their consent. These businesses initially solicit the consumers with a promise of providing short-term loans and then pocket exorbitant fees from the tax refunds they file in the consumer’s name.
According to DATCP, some tips to avoid becoming a victim include:
- Be alert to promotions such as “holiday loans” or other short-term loans that can be used to gain the personal financial information needed to file an individual’s tax return.
- Be careful providing personal financial information to a business unless you want the preparer to file your taxes. Make sure you provide clear direction and that the company specifically advises you on whether they intend to file your tax return.
- Never sign an authorization permitting a company to file your taxes if you don’t want the company to do so.
- Never sign a document without first reading and understanding what it says.
- Always insist upon receiving copies of all documents that you are required to sign or that identify the terms of a transaction and the charges you will be required to pay. Confirm, before signing, that you will receive copies. If a business does not agree to provide copies, don’t sign.
Officials also want anyone suspecting fraudulent activity to file a complaint with DATCP. Complaints can be filed online through the DATCP website or a complaint form can be requested by calling Wisconsin’s Consumer Protection Hotline at (800) 422-7128.
