SPARTANBURG, S.C. (WSPA) – There has been a recent surge in tax scams and federal tax officials want you to be aware if you run across one.
According to the South Carolina Department of Revenue, two of the scams this summer are related to tax refunds and the federal Employee Retention Credit.
Thousand of taxpayers in South Carolina have been receiving phishing emails promising taxpayers refunds of $976. Others have received emails claiming they are due a refund and will need to create an “E-refund” by clicking a link, noting that the action must be taken within 3 days.
Businesses in South Carolina also are being targeted by scammers marketing federal Employee Retention Credits.
Federal officials said the scammers make false claims to businesses about their eligibility for the Employee Retention Credits, leading businesses to improperly claim the credit. The scammers charge up-front fees or fees based on the number of claims a business submits.
If you feel like you have been scammed, read the following for assistance:
For South Carolina assistance:
- If you suspect or know of an individual or company that has committed tax fraud, complete the CID-27, Tax Violation Complaint Form and submit it to the address listed on the form.
- If you believe you are a victim of identity theft, file an I-381, Identity Theft Affidavit with the SCDOR and submit it to the address listed on the form.
- File a police report.
- Contact the SC Department of Consumer Affairs.
For federal assistance:
- To report phishing scams, send the email or a copy of the text message as an attachment to firstname.lastname@example.org.
- Taxpayers can also report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center.
- To report Employee Retention Credit scams, submit the Form 14242, Report Suspected Abusive Tax Promotions or Preparers. Mail or fax a completed Form 14242 and any supporting materials to the IRS using the information on the form.
Federal officials wanted to remember taxpayers that the SCDOR or the IRS will not contact taxpayers by email, text message or social media.