New York Attorney General Letitia James is urging taxpayers to steer clear of tax-related scams as the April 15 filing deadline approaches. She also encouraged eligible New Yorkers to take advantage of the free Direct File service to avoid paying unnecessary fees.
The Direct File program allows qualifying residents to file both federal and state tax returns online at no cost. According to the New York State Tax Department, it could save taxpayers an average of $260 in tax preparation fees.
Common Scams on the Rise
“While tax season can be stressful, New Yorkers deserve peace of mind knowing they’re protected from scams and don’t need to pay hundreds just to file their taxes,” said Attorney General James. “The Direct File program is a safe and easy way to save money.”
James warned of several common scam tactics:
- Fake debt collectors demanding payment through gift cards or prepaid credit cards — a method no legitimate government agency uses.
- Refund scams where fraudsters claim your refund was sent by mistake and demand repayment via phone, text, or email.
- Phony free tax services that trick users into paying fees after offering free filing help.
- Unlicensed tax preparers who promise fast refunds but charge high fees and interest.
- Unsolicited messages requesting personal or financial information to “verify” your account.
Who Qualifies for Direct File?
Roughly 3.4 million New Yorkers are eligible for Direct File this year. Individuals earning up to $200,000 — or $250,000 for joint filers — may qualify.
To use Direct File:
- Check eligibility for IRS Direct File to file your federal return.
- After completing your federal return, you will be guided to New York State Direct File for your state taxes.
- Visit the New York State Tax Department’s website for more information.
Tips to Stay Safe During Tax Season
Attorney General James also offered several tips to help taxpayers protect themselves:
- Never trust threats of arrest or deportation tied to unpaid taxes. Legitimate agencies will only contact you by mail.
- Use reputable tax preparers, and always review your return before signing.
- Verify credentials through the Better Business Bureau, and ensure your preparer signs your return and includes their Preparer Tax Identification Number (PTIN).
- Request a full breakdown of services and fees before paying for tax preparation.
Consumers can also review the New York Consumer Bill of Rights Regarding Tax Preparers for more guidance.
Anyone who suspects they’ve been targeted by a tax scam should file a complaint with the Attorney General’s Office online or call 800-771-7755.
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