As Tax Day approaches, New York Attorney General Letitia James is sounding the alarm on rising tax-related scams and encouraging New Yorkers to take advantage of the IRS and state’s Direct File program to file their taxes for free before the April 15 deadline.
The Direct File program, available to millions of qualifying New Yorkers, allows individuals to file both federal and state taxes online at no cost—potentially saving up to $260 in preparation fees.
“Tax season is stressful enough without worrying about scams or overpaying for help,” said Attorney General James in a statement. “Direct File is a secure, no-cost option that puts money back in the hands of New Yorkers. I urge everyone to stay alert for fraudsters looking to take advantage this time of year—and to report any suspicious activity to my office.”
Top Tax Season Scams to Watch For:
James outlined several common scams that taxpayers should be aware of:
- Fake debt collection: Scammers may falsely claim you owe back taxes and demand payment via gift cards or prepaid debit cards. No government agency collects debts this way.
- Refund scam: Fraudsters may tell you that your tax refund was issued in error and must be returned. Legitimate IRS communications always come in writing—not by phone, text, or email.
- “Free” tax prep cons: Some services advertise themselves as free but later tack on hidden fees.
- Fast refund traps: Some preparers promise speedy refunds while charging excessive interest or fees.
- Unsolicited contacts: Any unexpected request for personal or financial information via text, call, or email is a red flag.
Who Qualifies for Direct File?
According to the New York State Department of Taxation and Finance, around 3.4 million residents are eligible this year. Individuals earning up to $200,000—or $250,000 for joint filers—may qualify.
Steps to use Direct File:
- Check eligibility for New York State Direct File.
- Check eligibility for IRS Direct File.
- If qualified, start with the IRS Direct File portal. Once your federal return is submitted, you’ll be directed seamlessly to New York State’s Direct File system for state taxes.
Additional Consumer Protection Tips:
- Ignore threats of arrest or deportation tied to tax debts—legitimate agencies don’t use such tactics.
- Use reputable tax preparers, and thoroughly review returns before signing.
- Verify credentials of tax professionals via the Better Business Bureau. Preparers should provide a signed return and include their official Preparer Tax Identification Number (PTIN). Be sure to obtain a receipt detailing services and fees.
For more tips, refer to the New York Consumer Bill of Rights Regarding Tax Preparers.
New Yorkers who believe they’ve been targeted by a scam can file a complaint online or call the Attorney General’s office at 800-771-7755.
– More 2025 Tax Season Updates and Coverage from FingerLakes1.com
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