WASHINGTON: The U.S. Internal Revenue Service has warned taxpayers about possible internet-based scams in filing tax returns. It has told income tax filers to beware of email messages purportedly offering free tax-filing services.
The deadline for filing tax returns ends Tuesday.
The IRS said it has come to its notice that certain websites, posing as Free File Alliance, are sending emails to members of the public offering to file the returns for free. It said there is no authorized agency to undertake this work except the IRS and filers should access only the Free File program that is on the IRS.gov site.
The IRS said in a statement it is investigating complaints about websites claiming to be partners in the Free File program and persuading the taxpayers to part with their personal information and then depositing the returns in some other bank accounts. It is like a phishing scam, the IRS said, in which fake e-mails are sent from websites masquerading as banks or online retailers asking recipients for account numbers and other personal information.
According to security firms, the fraudsters get hold of the personal details of the taxpayer and then change the bank account number that the tax refund goes to, thus cheating the taxpayer.
Security experts are also saying the fraudsters could exploit the Microsoft DNS server vulnerability, which was announced last week, to redirect web browsers from legitimate sites to phishing or other scam sites.
The IRS said the Free File program is available for taxpayers with an adjusted gross income of $52,000 or less. Nearly 95 million of the 136 million taxpayers in the country qualify for the program.
It said that Free File is an effective way for taxpayers to get a refund quickly or schedule their tax payment for 17 April.