NY Legal professional Normal Letitia James speaks throughout a press convention on the Division of Authorities Effectivity (DOGE) at Manhattan Federal Courthouse on Feb. 14, 2025 in New York Metropolis.
Picture by Michael M. Santiago/Getty Photographs
New York Legal professional Normal Letitia James on Tuesday issued a client alert urging New Yorkers to keep away from frequent tax preparation scams and verify if they’re eligible for the free Direct File service to file their taxes earlier than Tax Day on April 15.
James stated the Direct File program permits qualifying taxpayers to file their federal and state taxes on-line for gratis, saving the common New York taxpayer about $260 in tax preparation charges.
As well as, Legal professional Normal James launched a sequence of suggestions to assist taxpayers acknowledge scams and frauds related to tax season.
“Whereas tax season may be irritating, New Yorkers deserve peace of thoughts understanding that they’ll be shielded from scams and gained’t must pay tons of of {dollars} simply to file their taxes,” stated Legal professional Normal James. “The Direct File program is a secure and simple technique to file taxes totally free and save tons of of {dollars}.
“I encourage everybody to be looking out for fraudsters who attempt to benefit from tax season to cheat New Yorkers, and report any suspected frauds to my workplace,” she added.
James stated frequent fraud ways that New Yorkers ought to be looking out for embrace: “Fraudsters who declare you owe previous tax money owed and demand that you just pay utilizing a pay as you go bank card or present card. Official authorities officers and companies don’t search to gather money owed via these means;
“Being informed that your reliable tax refund from the IRS was a mistake, and, due to this fact, you need to return it. For those who owe cash, you’ll obtain a reliable discover in writing that identifies the company and the explanation you owe cash, not a cellphone name, electronic mail, or textual content message;
“Fraudsters who make false guarantees of free tax preparation companies, solely to deceive folks into paying for these companies;
“Tax preparers who deceptively declare to get you your tax refund faster after which cost you excessive rates of interest and costs; and Any unsolicited calls, textual content messages, or emails asking for private data or to confirm monetary account data.”
The New York Tax Division estimates that 3.4 million New Yorkers will be capable to use Direct File this yr. New Yorkers with 2024 wages of as much as $200,000, or $250,000 if submitting a joint return, could qualify.
James urges the general public to take the next steps to seek out out if you happen to qualify and use Direct File: “Verify in case you are eligible for New York State Direct File to file your New York State private revenue tax return;
“Verify if you happen to’re eligible for IRS Direct File to file your federal private revenue tax return; and in case you are eligible, start your federal return on the IRS Direct File web site.
“After you file your federal return, you may be seamlessly directed to New York State Direct File to file your New York State taxes.”
Along with utilizing Direct File, Legal professional Normal James gives the next suggestions for New Yorkers to guard themselves throughout tax season: “Official authorities organizations won’t ever threaten arrest or deportation for failure to pay a debt and can by no means insist that customers pay a debt solely through a pay as you go bank card, present card, or wire switch;
“Solely use established firms for tax-preparation companies, and at all times evaluation the complete tax return earlier than signing it; and
“If utilizing a tax preparer, verify the individual’s {qualifications} and historical past via the Higher Enterprise Bureau. It’s best to be certain that they signal the tax type and embrace their Preparer Tax Identification Quantity (PTIN) upon completion.
“Additionally guarantee that you’re given an announcement of the tax companies offered and pay shut consideration to any further charges or pursuits. For extra data, please seek the advice of New York’s Shopper Invoice of Rights Concerning Tax Preparers.”
Any New Yorker who suspects that they’re a sufferer of a rip-off is inspired to report it to the Workplace of the Legal professional Normal (OAG) by submitting a grievance on-line or calling 800-771-7755.
