IRS to Implement Collins’ Bill to Help Prevent Con Artists from Stealing Tax Refunds

Identity theft tax refund fraud cost Americans $1.7 billion in 2016.

Washington, D.C. — The Internal Revenue Service (IRS) announced this week that, starting in January, the Identity Protection (IP) PIN program will now be expanded to all taxpayers who can properly verify their identities.  This expansion was prompted by the Taxpayer Identity Protection Act, bipartisan legislation authored by U.S. Senators Susan Collins (R-ME) and Doug Jones (D-AL) to thwart identity theft tax refund fraud and prevent American taxpayers and seniors from falling victim.  This legislation was signed into law last year as a provision in the Taxpayer First Act.

“Each year, tens of thousands of Americans are victims of tax refund fraud, and seniors are particularly vulnerable,” said Senator Collins, the Chairman of the Aging Committee.  “Having an IP PIN has proven to protect against identity theft.  This expansion by the IRS is an encouraging, concrete step to help protect taxpayers from being ripped off by criminals and ensure that they receive the refunds to which they are entitled.”

The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns.  An IP PIN helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. 

Taxpayers who obtain an IP PIN should never share their code with anyone but their trusted tax provider.  The IRS will never call to request the taxpayer’s IP PIN, and taxpayers must be alert to potential IP PIN scams.

Click here for more information on the IP PIN program: https://www.irs.gov/newsroom/national-tax-security-awareness-week-day-3-irs-expands-identity-protection-pin-opt-in-program-to-taxpayers-nationwide

Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds

Beware of Fake Calls to Return Money to a Collection Agency

News Release
IR-2018-27, Feb. 13, 2018

WASHINGTON — The Internal Revenue Service today warned taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. The IRS also offered a step-by-step explanation for how to return the funds and avoid being scammed.

Following up on a Security Summit alert issued Feb. 2, the IRS issued this additional warning about the new scheme after discovering more tax practitioners’ computer files have been breached. In addition, the number of potential taxpayer victims jumped from a few hundred to several thousand in just days. The IRS Criminal Investigation division continues its investigation into the scope and breadth of this scheme.

These criminals have a new twist on an old scam. After stealing client data from tax professionals and filing fraudulent tax returns, these criminals use the taxpayers’ real bank accounts for the deposit.

Thieves are then using various tactics to reclaim the refund from the taxpayers, and their versions of the scam may continue to evolve.

Different Versions of the Scam

In one version of the scam, criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency.

In another version, the taxpayer who received the erroneous refund gets an automated call with a recorded voice saying he is from the IRS and threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the taxpayer a case number and a telephone number to call to return the refund.

As it did last week, the IRS repeated its call for tax professionals to step up security of sensitive client tax and financial files.

The IRS urged taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encouraged taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately.

Because this is a peak season for filing tax returns, taxpayers who file electronically may find that their tax return will reject because a return bearing their Social Security number is already on file. If that’s the case, taxpayers should follow the steps outlined in the Taxpayer Guide to Identity Theft. Taxpayers unable to file electronically should mail a paper tax return along with Form 14039, Identity Theft Affidavit, stating they were victims of a tax preparer data breach.

Here are the official ways to return an erroneous refund to the IRS.

Taxpayers who receive the refunds should follow the steps outlined by Tax Topic Number 161 – Returning an Erroneous Refund. The tax topic contains full details, including mailing addresses should there be a need to return paper checks. By law, interest may accrue on erroneous refunds.

If the erroneous refund was a direct deposit:

1. Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
2. Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.

If the erroneous refund was a paper check and hasn’t been cashed:

1. Write “Void” in the endorsement section on the back of the check.
2. Submit the check immediately to the appropriate IRS location listed below. The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.
3. Don’t staple, bend, or paper clip the check.
4. Include a note stating, “Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check).”

The erroneous refund was a paper check and you have cashed it:

• Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.

• If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone and local assistance for hours of operation) and explain to the IRS assistor that you need information to repay a cashed refund check.

• Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).

• Include a brief explanation of the reason for returning the refund.

• Repaying an erroneous refund in this manner may result in interest due the IRS.

creditcards.com warns: 1099-C surprise: Canceled debt often taxable as income

For many consumers, after the collector leaves their lives, the taxman arrives

By Fred O. Williams  |  Updated: January 10, 2018

If you thought your money woes ended last year when you settled that credit card debt, think again. For many consumers with debt problems, after the debt collector leaves their lives, the taxman arrives.

Months after successfully resolving credit card debts, consumers may receive 1099-C “Cancellation of Debt” tax notices in the mail. Why? The IRS considers forgiven or canceled debt as income.

Creditors and debt collectors that agree to accept at least $600 less than the original balance are required by law to file 1099-C forms with the IRS and to send debtors notices as well. The more than 4 million taxpayers a year who receive the forms must report that portion of forgiven debt as “income” on their federal income tax returns.

1099-C tax surprise

• If a debt is forgiven or canceled, the IRS requires lenders to issue a 1099-C tax form to the borrower to show the amount of debt not paid. The IRS then requires the borrower to report that amount on a tax return as income, and it’s often an unpleasant surprise:
• 6 exceptions to paying tax on forgiven debt
• 1099-C: Frequently asked questions

To learn more

New development could cause scammers to capitalize on potential confusion

Senator Collins Cautions Consumers of IRS’s Use of Private Debt Collection Companies

PRESS RELEASE
April 14, 2017

Click image for more information

Washington, D.C. – U.S. Senator Susan Collins, the Chairman of the Senate Aging Committee, is cautioning consumers to be aware of the Internal Revenue Service’s (IRS) new policy of using private debt collection companies to collect unpaid taxes.

Under the new protocol, the IRS has authorized four private debt collection companies to collect unpaid taxes. They are CBE Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA; and Pioneer of Horseheads, NY. Only one of these companies will contact you in the event you owe money to the IRS.
Here is what you need to know about this new development:

• If you have an overdue balance on your account, the IRS will first send you a letter informing you that it is giving your information to one of the four companies listed above, providing the company name and contact information.
• The debt collector will then send you a letter confirming the account turnover prior to contacting you by phone.
• Upon calling you, they will be able to discuss payment options, but the only way you can pay your tax debt is electronically or by check payable to the US Treasury.

“The IRS’s use of private debt collection companies to collect unpaid taxes is in the spirit of efficiency, but may create confusion for those already susceptible to the IRS impersonation scam, like our nation’s seniors,” said Senator Collins. “I urge consumers to remain vigilant and protect themselves from potential scams that could stem from this new development.”

If you know you don’t owe taxes or do not immediately believe that you do, you can report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

To read more about this change from the IRS, click HERE.

Never give personal information, such as bank account or credit card numbers, to someone you do not know. If you suspect fraud, please contact the Aging Committee’s Fraud Hotline at 1-855-303-9470

You can’t avoid death and taxes, but you can dodge identity theft

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT

Posted Jan. 30, 2017, at 8:25 a.m.

Last year, the Internal Revenue Service, the states and tax professionals teamed up to reduce incidents of taxpayer identity theft.

The crime occurs when a criminal steals your Social Security number and files a return in your name; the thief claims a refund to which he’s not entitled. When you file your legitimate tax return, the IRS flags it because it has already received a return in your name.

It’s believed that more diligent enforcement helped the IRS to prevent more than $180 million from going to fraudulent claimants. Now, officials are doubling down on their efforts to fight taxpayer ID theft.

The Federal Trade Commission has proclaimed the week of Jan. 30-Feb. 3 as Tax Identity Theft Week. The agency is offering a series of events to educate consumers and business people on ways they can minimize the risk of thieves stealing refunds.

At 3 p.m. Tuesday, Jan. 31, the FTC and Identity Theft Resource Center will hold a Twitter chat dealing with tax identity theft, ways to protect yourself and what to do if you are a victim.

A similar session is planned for 11 a.m. Wednesday, Feb. 1, about tax ID theft for service people, veterans and their families. At 4 p.m. Wednesday, Feb. 1, FTC and the IRS will hold a tax ID theft chat for small business people. Find a link to these and other events at www.ftc.gov and look under “Latest News.”

Income tax season is big business for high-tech criminals, so be on guard for all sorts of scams. You might get a call from someone posing as an IRS official, seeking to “verify” tax return information by phone.

Other scammers may mention news reports of tax fraud and try to trick victims into “verifying the last four digits of their Social Security number.”

Others might pretend to be from the tax preparation industry … in short, they’ll use any tactic they think might work to fool consumers.

The crooks also take aim at business people. They might call human resources professionals and ask for information found on W-2 forms; a variation of that scam has an email message bearing the name of a corporate officer seeking personal information about an employee. Some scammers have posed as providers of software to trick tax preparers.

The variations are virtually endless. The IRS lists many of the most often used tricks at its website, www.irs.gov/uac/tax-scams-consumer-alerts.

Many tax pros suggest filing early, thereby giving the crooks less time to file fraudulently ahead of you. Once you have filed, you can check the status of your refund at www.irs.gov/Refunds.

You also can call the IRS Identity Theft toll-free at 800-908-4490 or visit www.irs.gov/identitytheft.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

If robots call to say you owe back taxes, don’t believe them

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT

Posted Jan. 16, 2017, at 6:19 a.m.

Which of the following is a scam?

— You get a phone call saying you owe money to the Internal Revenue Service and should pay by way of an iTunes card.

— A caller says she is an IRS official demanding immediate payment of overdue taxes, and the number on your caller ID appears to be from the local IRS office.

— A caller identifies himself as a law enforcement officer and says you face immediate arrest if you don’t wire money for overdue taxes.

— An email bearing an official-looking IRS logo asks you to “update your IRS e-file immediately.” The email mentions IRSgov — without a dot separating “IRS” and “gov.”

If you answered that all of the above are scams, you are correct.

The investigative arm of the IRS says that 1.8 million people have reported receiving impostor calls. More than 9,600 victims have been scammed out of more than $50 million.

Phishing and malware incidents rose roughly 400 percent during the 2016 tax filing season. Despite officials’ best efforts to curb the increase, it’s expected that the numbers of tax-related scam attempts will continue to grow.

Increasingly popular with scammers is the robo-call. The crooks leave urgent call-back requests, demanding payment of “back taxes” with gift cards. IRS officials say such demands are clear signs of a scam.

Other callers may ask for payment of a nonexistent “federal student tax.” People they call are told to wire money — another sure sign of a scam — with threats of legal action unless payment comes at once.

Another scheme involves a call saying the IRS “just needs a few details” to speed up the processing of your refund. The scammer tries to get personal information such as Social Security numbers, bank routing numbers or other sensitive data such as credit card numbers.

Human resources and payroll professionals have been targeted as well, through requests for information about employees. A scammer posing as the company’s CEO requests personal and financial information, including Social Security numbers.

In an effort to catch scammers and identity thieves, the IRS is delaying refunds this year for anyone claiming the earned income tax credit (EITC) or the additional child tax credit (ACTC). That move is expected to give the IRS added time to weed out more sophisticated fraudulent returns. It may also hurt lower income taxpayers who file early and likely will be waiting at least until late February for refunds. Offers to “help speed up your refund” may be more scams.

Sen. Susan Collins, R-Maine, chairs the Senate’s Special Committee on Aging, which has published a guidebook on avoiding scams. Read it online at aging.senate.gov/imo/media/doc/217925%20Fraud%20Book%20Final.pdf. You also can call the committee’s fraud hotline (1-855-303-9470) for information or to report fraud attempts.

The IRS offers a summary of our legal protections in the Taxpayer Bill of Rights at irs.gov/taxpayer-bill-of-rights.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Protect yourself against scams before filing taxes

CONSUMER FORUM

 

By Russ Van Arsdale, executive director Northeast CONTACT

Posted Jan. 25, 2016, at 11:18 a.m.

Federal officials have termed them the biggest scams ever. Together, they cost consumers billions of dollars every year. And they use people’s fear of the Internal Revenue Service as a weapon.

The first starts with an unexpected phone call. You’re told that you owe taxes and must pay immediately or you’ll be jailed. What do you do?

An IRS official says, just hang up … it’s a scam.

Hundreds of thousands of consumers have received multiple calls from different people, all posing as either IRS officials or law enforcement agents. All the callers claim that legal action is certain, unless they receive money via wire right away. A demand for immediate payment is the second tipoff that it’s a hoax.

The first was the threat of imprisonment.

The IRS does not typically call a taxpayer; the agency begins by sending a letter. It also does not seek payment by way of prepaid cards, and it does not have agents standing by with arrest warrants in case the taxpayer hesitates.

The criminals who use these techniques can be abusive, even threatening to hurt their victims. These hoax calls may originate halfway around the world — although a spoofed phone number may make them appear nearby — and any threatened action rarely happens.

The second major hoax involves the filing of a phony tax return. If a thief steals your name, birthdate and Social Security number, he or she can file a bogus return in your name. If the IRS doesn’t catch it, the agency might send a refund to the crook; it may not be until you file your legitimate return that the fraud is discovered.

The IRS has trained thousands of employees to help possible victims. It has also put in place a number of preventive measures, most of which it won’t discuss in order not to assist the scammers. In a public message last week, the IRS said it has teamed up with the states and tax preparers to “stop fraudulent returns at the door.”

One new piece of information from tax software providers will be the amount of time it took to prepare a return. That could be a tipoff when computer-generated returns are fraudulent and have been filed by the hundreds or thousands.

You can read about the new measures at IRS.gov/uac/IRS,-States-and-Tax-Industry-Deploy-New-Safeguards-for-2016.

Tax season brings with it a rash of scam artists trying new ideas. Crooks might point to last year’s hack of IRS computers, which compromised some information of about 200,000 taxpayers. They might pose as “IRS counselors” or “credit advisers” while their real goal is to steal more personal data.

IRS officials suggest that tax preparers do a “deep scan” of all their computer drives and devices to find malware and viruses that may hide in places that a “quick scan” can’t find. Firewalls and antivirus software also should be up to date; if you use a tax preparer, don’t be shy about asking if security systems are robust.

If you store your tax filings on your computer, make sure there’s a backup in case your hard drive crashes. If you store paper copies, keep them under lock and key (ideally in a fireproof container). Find more security and identity protection tips at IRS.gov.

If you get a phone call you suspect is a hoax attempt, call 800-366-4484 to find out if the caller is a real IRS employee with a legitimate reason to reach you. If a piece of mail seems suspicious, call 800-829-1040 to see if it’s legitimate.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Identity thieves try to cash in during tax filing season

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT

Posted Feb. 01, 2015, at 9:53 a.m.

click image to report scams, waste and abuse

Two headlines top the news near the start of this income tax season.

Thieves who steal Social Security numbers and other personal data do so in order to file phony tax returns and claim rebates they’re not owed.

And crooks posing as Internal Revenue Service officials are calling people and, in many cases, bullying them into sending money they don’t owe.

They use common names and all kinds of tricks. They may say they’re calling from the IRS criminal division. They might have technology that will spoof a caller ID, making it appear they’re calling from a real IRS office. They threaten those they consider easier targets — such as older people and recent immigrants — with fines, jail terms, job loss, even deportation.

The crooks do their homework before calling. They might know a person’s Social Security number — or at least the last four digits — and other personal details that lend credence to their pitch. Demanding immediate payment is a tipoff it’s a scam — the real IRS first would notify you by letter of any official action — and the agency never would demand payment by a debit card or wire transfer.

Losing a one-time payment is bad enough. Thousands of taxpayers have filed their income taxes only to find a crook has stolen their identities, filed fraudulently and collected their refunds illegally.

The IRS says after such discoveries, it takes an average of four months to get a refund to its rightful recipient. That person also needs to go through the hassle associated with identity theft. Perhaps ironically, prisoners’ Social Security numbers often are tempting targets, because inmates are less apt to be on top of their tax or banking activities.

The Treasury Inspector General for Tax Administration, or TIGTA, says it has received reports of 290,000 scam calls since October 2013, and nearly 3,000 victims have lost a total of $14 million. The IRS has been working to curb these crimes, saying it spotted 19 million suspicious returns since 2011 and prevented more than $63 billion in fraudulent returns. Read about ways to spot impersonators and report scams at Treasury.gov/tigta.

Consumers can and should take all the usual steps to prevent fraud: use firewalls and antivirus software, use strong passwords and change them often on all online accounts and reveal your Social Security number only when it’s absolutely necessary.

If you become a victim, the IRS says it wants to help. Read about the agency’s prevention and detection efforts at IRS.gov/Individuals/Identity-Protection.

The IRS is also warning consumers about unscrupulous preparers who push filers to make inflated claims. Often, these preparers will demand an up-front fee; they may also refuse to give the taxpayer a copy of the return. Both are things that legitimate tax preparation pros don’t do.

You may qualify for free help preparing your income tax filings. Seniors can check with AARP or the local agency on aging. The Volunteer Income Tax Assistance, or VITA, program gives free tax help to people who make $53,000 or less, have disabilities, are older or who speak little English and need help preparing their returns.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit necontact.wordpress.com or email contacexdir@live.com.

When the taxman cometh, make sure he’s really the taxman

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted Jan. 26, 2014, at 9:50 a.m. 

As the story went, the Internal Revenue Service was threatening people who had not filed their income tax returns by Jan. 31 with $10,000 fines.

The story was a hoax, of course. But similar threats are often treated as real, with terrified recipients of bogus emails and phone calls taking a panicky road to losing money.

Tax scams are high on the list of ploys that scammers use to try to steal identities. Dollar losses run into the billions every year. The IRS says scammers who call potential victims often:

— Know the last four digits of the victim’s Social Security number;

— Make caller ID appear that the IRS is really calling;

— Send fake emails to reinforce the scam;

— Use common names, phony IRS badge numbers and threaten victims with jail time or revocation of their drivers licenses;

— Call again, claiming to be police or the Department of Motor Vehicles — and caller ID again that appears to back them up.

Scammers who call with a little of your personal information can prompt you to give them enough data to steal your identity and file a false return. The IRS is watching for such fraud, but it’s still a major problem.

Federal officials advise, if you get such a phone call and you owe or think you might owe taxes, hang up and call the IRS at 800-829-1040. IRS staff can help answer your payment questions. If you don’t owe taxes and get such a call, report it to the Treasury Inspector General for Tax Administration at 800-366-4484.

You can also file a complaint with the Federal Trade Commission at FTC.gov. Include “IRS Telephone Scam” in your comments.

Businesses may be targets of scammers, too. Owners should watch for offers that are too good to be true (they are) or that require fees in advance. Reject any claim that “the IRS is giving away money” or that you can use outlandish write-offs. Also avoid “consultants” who want to create dummy corporations, hide money offshore or divert funds into trusts as tax dodges.

Scammers rifle through tax liens to see who’s in trouble, then offer “relief,” which means you pay them and get nothing. Some tax preparers can get you in trouble; they may make false claims to get a healthy return deposited to a bank account, then cut you a check for a fraction of the amount.

If someone else prepares your return, read it before signing; it’s still your responsibility to see that everything’s accurate. Don’t do business with a preparer who asks for a percentage of the refund you’re expecting. Do research on the preparer’s track record. Look for a Tax Preparer Identification Number (issued by the IRS) on your return. And never agree to have your return deposited in the preparer’s account.

Learn more about tax scams online at http://www.irs.gov/uac/Tax-Scams-Consumer-Alerts.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Department of Professional and Financial Regulation Offers Guidance for End of Year Charitable Contributions

Charitable Scams Can be More Prevalent This Time of Year  

GARDINER  –  As many Maine families consider holiday season and end of year charitable contributions, Governor Paul R. LePage and Commissioner Anne Head from the Department of Professional and Financial Regulation are encouraging Maine residents to check the legitimacy of unknown charities.  Potential donors are urged to always research charitable organizations before making a donation.  A quick check with the Department can provide information to help in determining whether a charity is legitimate or a scam.

“Maine people are well known for lending a hand to others and for supporting charities,” Governor LePage said.  “We saw that earlier this week with the successful conclusion of the Maine State Employees Combined Charitable, which has raised nearly $270,000 to help those in need.  We always encourage charitable giving and want to assist donors in directing their support to legitimate charities.”

Charitable organizations are required to be licensed with the Department’s Office of Professional and Occupational Regulation, which collects information about charitable activity in Maine and makes it available to the public.

“Charitable solicitation scams aren’t new, but they sometimes increase during the holiday season, at the end of the year, and in the aftermath of tragedies,” Commissioner Head said.  “It’s important for the public to know that guidance and resources are available to assist people in making sure their contributions are going to real charities.”

Commissioner Head advises individuals to ask questions and seek printed information about unknown charities; to confirm their legitimacy with regulators; to never send cash or wire money when requested to do so; to always keep receipts of donations; and to report concerns or complaints about questionable solicitations with the Department and law enforcement.

Information about charities can be obtained through the Department’s website (www.maine.gov/pfr), specifically atwww.maine.gov/pfr/professionallicensing/professions/charitable. Links allow for the search of licensed charitable organizations, as well as disciplinary actions.  Questions and complaints can also be made by calling the Charitable Solicitations Program at 207-624-8525.

Additional tips and advice accompany this news release and can also be obtained from the Federal Trade Commission (www.ftc.gov/charityfraud/).

The Department of Professional and Financial Regulation protects the citizens of Maine and supports the economy through the oversight of State-chartered financial institutions, the insurance industry, grantors of consumer credit, the securities industry, and numerous professions providing services to the public.  More information is available at www.maine.gov/pfr.

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Tips and Advice When Considering Charitable Giving

December, 2013

• Always research unknown charities before contributing.  And whether the charity is new or well established, you may wish to know what percentage of your contribution is spent on fundraising, employee compensation, or expenses which do not directly support the charity’s stated purpose.

• Not all organizations with names that sound like charities are actually charities.  Some organizations select names that are similar to those of well-known charities.

• Be cautious when contacted by telephone for a contribution.  Ask that the request be put in writing.  You may also want to ask if the caller is a paid solicitor or a volunteer for the charity.

• Never give your bank account information or credit/debit card numbers to a caller.  And be wary if the person soliciting the contribution is willing to have someone rush to your home or business to meet with you and pick up a contribution.

• If you wish to receive a tax deduction, make sure the organization has a tax deductible status with the Internal Revenue Service. “Tax exempt,” “non-profit,” and “tax deductible” mean different things.  Only “tax deductible” means contributions are deductible on your income tax return.  Visit the IRS website (www.irs.gov/charities) for more information.

• Be wary of organizations which list only post office boxes or mail drop suite numbers as their address.  You may wish to inquire about the charity’s location.