WHAT YOU SHOULD KNOW ABOUT TAX SCAMS

With tax season in full effect, I wanted to get a better understanding of any tax scams that may be out there and how we can avoid them.

If you’ve ever been a victim of a scam or identity theft or know someone who has then you know it can be devastating!

Scams can result in a huge loss financially and can cause a tremendous amount of stress.

Scammers are out there thinking up new ways to scam people and I want you to be aware!

Since I’m not an expert in that field I brought one in to help us all learn what to look out for.

Expert tips by Mike Savage, CPA, and CEO of 1-800Accountant.

Tax day is fast approaching and scammers are out in full force seeking ways to take advantage of Americans. In 2018, the IRS recorded a 60% increase in bogus “phishing” email schemes that tried to steal Americans personal data and money.

To help taxpayers avoid being taken for a ride, we here at 1-800Accountant wanted to spotlight some of the top tax scams from both shady accountants and professional con artist’s so that you don’t get taken advantage of this year.

9 TYPES OF TAX SCAMS

1. Identity Theft

Tax time brings extra activity among thieves looking for Social Security numbers and other personal information that allows them to falsely claim refunds. Taxpayers should be alert to tactics aimed at stealing their identities, not only during the tax filing season but all year long.

2. Phishing

The IRS does not e-mail you or direct you to websites regarding any bill without prior contact. Do not be fooled by e-mails encouraging you to click on links to a site in reference to your tax bill; the website may be a fake, designed to gain your personal information.

Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a bill or tax refund. Don’t click on one claiming to be from the IRS. Be wary of emails and websites that may be nothing more than scams to steal personal information.

3. Phone Scams

Con artists sometimes impersonate IRS agents and threaten arrests, deportation, and other unpleasant outcomes unless a bill is paid immediately over the phone. No matter what horrible things you think about our tax system, the IRS does not do business this way.

Never give out your personal information over the phone unless you initiated the call and are sure you are dealing with a real IRS agent. Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers.

4. Preparation Fraud

Some tax preparers bend the rules in order to get the highest refund possible for a client. Unfortunately, once the taxpayer signs and files the return, he or she is responsible for any errors. If you choose to have others do your taxes, be sure to use a reputable tax preparer.

The vast majority of tax professionals provide honest, high-quality service. There are some dishonest preparers who operate each filing season to scam clients, perpetuating refund fraud, identity theft and other scams that hurt taxpayers.

5. Inflated Refunds

Anyone who promises a big refund without looking at your records first should be avoided. If it sounds too good to be true, guess what? It is.

Those preparers who ask clients to sign a blank return, promise a big refund before looking at taxpayer records or charge fees based on a percentage of the refund are probably up to no good. To find victims, fraudsters may use flyers, phony storefronts or word of mouth via community groups where trust is high.

6. Fake Charities

Before making a donation, check the IRS website to make sure it is going to a qualified charitable organization. Look for knockoff organizations with names, websites, and logos that are similar to well-known legitimate organizations.  

Groups masquerading as charitable organizations solicit donations from unsuspecting contributors.  Contributors should take a few extra minutes to ensure their hard-earned money goes to bona fide charities.

7. Falsifying Income for Credits

Scam artists can suggest bending the income rules to qualify for tax credits that target lower-income taxpayers, such as the Earned Income Tax Credit. Do not give in to their claims.

Never falsify income on a tax return for any reason, regardless of what anybody tells you.  Taxpayers should file the most accurate tax return possible because they are legally responsible for what is on their return. This scam can lead to taxpayers facing large bills to pay back taxes, interest, and penalties.

8. Abusive Tax Shelters

By using complicated but authoritative-sounding language, tax scammers can fool people into thinking tax shelters are legitimate when they are not. Seek independent confirmation and outside advice on any scheme designed to limit or avoid taxes.

Abusive tax structures are sometimes used to avoid paying taxes.  The majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true.

When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered.

9. Frivolous Arguments

The IRS is too busy to waste time listening to your claims of being a sovereign nation and therefore enjoying immunity from taxes, or any similar outlandish claims on tax returns.

Frivolous tax returns incur a $5,000 penalty, and failure-to-file penalties can end up being even worse. Frivolous tax arguments may be used to avoid paying tax.

Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims about the legality of paying taxes despite being repeatedly thrown out in court.

Mike Savage is a CPA and CEO of 1-800Accountant, the nationwide premier virtual accounting firm servicing over 200,000 taxpayers across the country.  Mike’s expertise has been featured in CNBC, Business Insider, Consumer Reports, US News and World Report, and many other prominent publications.

This post may contain affiliate links. Read my disclosure policy here

10 PLACES  TO GET FREE BOOKS TO READ

Do you love reading but can’t afford to buy book after book? Books can get very expensive, so to feed your love for books you have to know where to get free books!

Below I am going to share with you 10 ways to get free books. If you love physical books it’s a bit harder to find free ones but if you’re willing to switch to ebooks and audiobooks you will have endless options!

Oh, and you don’t even need a Kindle (or any e-reader) to do so!

That’s right; there are many free e-reader apps and programs available to be able to read the many different formats of ebooks out there.

Since Kindle ebooks are the most popular I use Amazon.com’s FREE Kindle Reading App which works on most devices.

If you utilize this list, you will end up with a FULL digital library and maybe a few physical books as well.

HOW TO FIND FREE BOOKS

1. Free-Ebooks.net

Free-Ebooks.net gives you Unlimited access to all the Free Ebooks you want. Also, they now offer Audiobooks too!

If you’re a huge audiobook listener you will want to check out my article on cheaper alternatives to Audible.

You can register at NO cost for a Standard Membership to read books online in any Internet Browser and download up to 5 eBooks in PDF format every month. They’ve got thousands of books, fiction, and non-fiction, for you to choose from.

Or, if you want Unlimited Access and Unlimited Downloads for ALL formats for any Ebook Reader, including Amazon’s Kindle, BN’s Nook, SONY’s Reader or, of course, Apple’s iPad, then you can enroll in a V.I.P. program for a nominal donation to get complete “1st Class” treatment.

2. PaperBackSwap.com

PaperBackSwap is an online book club for people over 18 with US mailing addresses. They share books with each other using the US mail. Each book you send gets you a book credit to order any available book for yourself. You pay postage for books you send; they pay postage for books you receive. Simple.

3. BookBub

BookBub is a free service that helps millions of readers discover great deals on acclaimed ebooks. Members receive a personalized daily email alerting them to the best free ebooks and deeply discounted titles matching their interests as selected by their editorial team.

4. BookGorilla

BookGorilla is a free site you signup for that will deliver a single daily email, tailored to your personal reading preferences, featuring the best deals on the best Kindle ebooks, either completely free or at deeply discounted bargain prices.

5. Gutenberg.org

Project Gutenberg offers over 53,000 free ebooks: choose among free epub books, free kindle books, download them or read them online for free.

6. Manybooks.net

Manybooks.net library contains more than 33,000 free ebooks formatted for Kindle, Nook, and most other e-readers. You can also access an HTML version of the books to read online.

7. OpenLibrary.org

Open Library is a project of the non-profit Internet Archive, and has been funded in part by a grant from the California State Library and the Kahle/Austin Foundation. They have over 1,000,000 books you can read online or borrow.

8. Amazon

If you have Amazon Prime you now get access to the NEW – Prime Reading where you can enjoy unlimited reading on any device, with over a thousand books, magazines, comics, articles, Kindle Singles, and more. You can check it out here.

If interested you may want to check out my article on whether Amazon Prime is worth it. Or grab a free 30 day trial.

9. Your Local Library

This is probably the most common and obvious place but most people forget about it. Visit your local library and grab a good book to read.

10. The Libby App

I wrote an entire article on how to use the Libby app to get free audiobooks and ebooks.

The Libby App allows you to borrow books and audiobooks instantly, for free, using just the device in your hand. This is one of my favorite ways to get books.

I use this method along with Scribd to listen to tons of audiobooks each month.

Did you like this list? Share it with your friends by using the sharing buttons above and below this post. Have a place you get free books that you want to share? Leave a comment below.

This article was originally part of The FREE STUFF SERIES. You can find more form that series below.

1. Intro to THE FREE STUFF SERIES: How To Get Free Stuff You Actually Want

2. Free Stuff for Reviews, Feedback, and Spreading The Word

3. Getting Free Full-Size Products From your Local Drugstore

4. Shop for Free by Referring your Friends

5. How to Earn Free Gift Cards Every Month

This post may contain affiliate links. Read my disclosure policy here

AUDIBLE ALTERNATIVES

Looking for an alternative to Audible?

Audible is a great service but if you’re on a budget it’s something you may want to cut out especially because there are cheaper alternatives out there.

But first, let’s go over a few features of Audible so that you can compare the value to the alternatives.

Audible has over 180,000 audiobooks, I haven’t come across a book they don’t have.

Audible is $14.95 a month and includes one credit to redeem for one audiobook each month. Members also get to pick 2 Audible Original titles from their monthly selections.

You can purchase additional audiobooks at an additional cost.

When you purchase audiobooks, they are yours to keep even after your membership ends.

If you want to get a feel for Audible (or just get two free audiobooks) you can take advantage of the free trial. You can get two free audiobooks with your trial by using my affiliate link.

Frugal Hack: Want to get a deal on your Audible Membership? Grab the free trial to get two free audiobooks and once you go to cancel your membership before your trial ends, Audible will USUALLY offer you a big discount if you stay! Grab the FREE AUDIBLE TRIAL.

Ok so now what about your other options. How do they compare?

When looking for another option besides Audible you will want to look at not just the monthly membership prices but also what is offered and whether or not it meets your needs.

For instance, some options will offer audiobooks, ebooks, magazines, etc. for one monthly price but if you cancel your membership then you no longer have access to the ones you downloaded.

If you never read a book twice then this should be fine but if you want to keep a book forever then this would not be an option for you. I’ll go over these in the summary section of all the Audible alternatives.

So what are some cheaper ways to to listen to audiobooks besides Audible?

Let’s get to the list!

CHEAPER ALTERNATIVES TO AUDIBLE

1. Scribd (My Pick)

I love this Audible alternative! It’s super affordable at just $8.99 a month and you get access to an unlimited number of books, audiobooks, magazines, and more (with a few title exceptions)!

How does Scribd work?

With Scribd, you have access to unlimited books, audiobooks, and magazines as long as you’re a member. Meaning you never actually own the books but you can keep them as long as needed while being a member.

I was able to download 4 audiobooks and dig right in as soon as a joined. I loved that most of the books I’ve been wanting to listen to were available right away. No need to wait for any credits or pay extra!

Want to give it a test run? You can grab 2 Months of Scribd Free if you use my referral link here. If you can sign up without my referral link you only get 30 days free.

SCRIBD SUMMARY

Scribd Price: $8.99 Month

What’s Included in the Price? The $8.99 gives you unlimited access to everything as long as you’re a member.

Free Trial:? Yes, 30 Day Free Trial OR 60 Days FREE using my referral link here.

***If you sign up for Scribd using my link, feel free to leave a comment on this article with your referral link!

Book Access: You do not keep the books if you cancel your membership but you have access to as many as you like as long as you’re a member.

Check out Scribd.

2. AudiobooksNow

AudiobooksNow is a service for downloading and streaming audiobooks. You can stream or download audiobook purchases from their website, or download them to their free app as well as many other ways to listen.

How does AudiobooksNow work?

AudiobooksNow can be used with or without a membership.

With the AudiobooksNow Club Pricing Plan membership, you can save 50% off your first audiobook purchase and 35-40% off each additional purchase each month.

Or you can simply purchase your audiobooks at their every day low prices (no plan required) if you don’t want to pay a monthly fee.

AUDIOBOOKSNOW SUMMARY

Price: $4.99 a month membership fee (books extra)

What’s Included in the Price? The $4.99 membership fee will give you 50% off of your first audiobook each month and discounts on the rest of your purchases.

Free Trial? Yes the trial only waives the $4.99 a month so you will still need to purchase your first audiobook at the 50% off price.

Book Access: You own your books once you buy them and you can access them after your membership ends.

Check out AudiobooksNow.

3. Downpour

Downpour offers digital downloads—with or without a membership. They also offer digital rentals, and CDs & MP3-CDs.

How does Downpour work?

With the Downpour Audiobook Club, you’ll receive one credit per month, good for one digital download for $12.99. You can purchase additional credits at any time with no added commitment.

Their titles are DRM-free (no digital lock) so you can listen to them on as many devices as you wish, with no hassle.

DOWNPOUR SUMMARY

Price: $12.99 a month

What’s included in the price? The $12.99 a month gives you 1 credit for a book each month.

Free Trial? I did not see that they had a free trial but I will update if I find one.

Book Access: The book titles you purchase will always be available and can be re-downloaded as many times as needed even if you cancel your subscription.

Check out Downpour.

4. Kobo

Kobo is another affordable option at just under $10. I haven’t tried this option myself but it looks like a good one.

How does Kobo work?

Kobo is a Walmart service. With Kobo you have access to exclusive content including Kobo Originals as well as popular titles. They also offer ebook deals for as low as $1.99.

You can create a free account to make single purchases or join their audiobook membership.

KOBO SUMMARY

Price: $9.99 a month

What’s included in the price? For $9.99 a month you get access to one free audiobook of your choice regardless of price. You also get access to exclusive and original content.

Free Trial? Yes, your first 30 days are free, including a FREE audiobook.

Book Access: You get to keep all your audiobooks forever, even if you cancel.

Check out Kobo.

5. The Libby App by Overdrive

This Audible alternative is somewhat limited but it’s also free!

I wrote a whole article about how to get free audiobooks using the Libby app by Overdrive.

How does Libby work?

Libby is an app that works by connecting it to your library card so that you can digitally borrow books from your library.

I love the Libby app (by Overdrive) but the one main limitation is that you have to wait for audiobooks to be available to borrow since its a library system.

Also depending on what library you’re attached too (you can add as many as you like) you may not be able to find the book you’re looking for especially in it’s audio version.

I was using Libby exclusively until I found Scribd. I loved it because it was a free option to Audible but because I consume lots of audiobooks I found Scribd to be a better option as its instant and I don’t have to wait for titles to be available.

Service	Price	Free Trial
Audible	$14.95 1 credit	Yes
Scribd	$8.99 Unlimited Books	Yes
AudiobooksNow	$4.99 50% off first audiobook	Yes
Downpour	$12.99 1 Credit	No
Kobo	$9.99 1 Credit	Yes
Libby	Free	Free

Questions? Comments? Which one of these do you like? Do you have one you would like to share? Leave a comment!

This post may contain affiliate links. Read my disclosure policy here