CARL WATTS & ASSOCIATES

June 27, 2016

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New Scams
Here are some warning signs of a charity scam:

  • You’ve never heard of the charity before, or it is well-known but you suspect the website, email or letter may be fake. A fake website may look almost identical to a legitimate charity site, changing only the details of where to send donations.
  • The person collecting donations on behalf of the charity does not have any identification. Remember, even if they do have identification, it could be forged or meaningless.
  • You are put under pressure or made to feel guilty or selfish if you don’t want to donate.
  • You are asked to provide a cash donation as they don't accept cheques. Or, they want the cheque to be made out to them rather than to the charity.


  • You are not given a receipt. Or, they give you a receipt that does not have the charity’s details on it.
  • Be especially cautious about getting a charity donation request by email. Most legitimate charities don’t use email for their solicitations. (Some legitimate charities will email people who have donated before — but never respond to requests where you’ve never donated.)

Taxpayers suspecting fraud by email should visit IRS.gov and search for the keywords “Report Phishing.”


Another new email scam targeting taxpayers emerged. According to the Taxpayer Advocacy Panel (TAP), taxpayers are receiving emails that appear to be from TAP about a tax refund. These emails are a phishing scam, where unsolicited emails which seem to come from legitimate organizations — but are really from scammers — try to trick unsuspecting victims into providing personal and financial information.


Do not respond or click the links in them. If you receive an email that appears to be from TAP regarding your personal tax information, please forward it to phishing@irs.gov and note that it seems to be a scam email phishing for your information.

TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information such as Social Security and PIN numbers or passwords and similar information for credit cards, banks or other financial institutions.

For those of you on vacation already, enjoy yourself, but stay alert, and keep up with our weekly newsletters.
Donations to charity are always commendable and encouraged throughout the year. Even if winter holidays seem to hold the record, people are touched by various tragedies taking place all over the world. And whenever there is money changing hands, scammers will always be present too.

The Internal Revenue Service issued a consumer alert about possible fake charity scams emerging due to the recent mass shooting in Orlando, Florida, and encouraged taxpayers to seek out recognized charitable groups.

When making donations to assist victims of a terrible tragedy, there are simple steps you can take to ensure your hard-earned money goes to legitimate charities. IRS.gov offers some tools you can use to quickly and easily check out the status of charitable organizations.

While there has been an enormous wave of support across the country for the victims and families of Orlando, it is common for scam artists to take advantage of this generosity by impersonating charities to get money or private information from well-meaning taxpayers. Such fraudulent schemes may involve contact by telephone, social media, e-mail or in-person solicitations.


The IRS cautions donors to follow these tips:

  • Be sure to donate to recognized charities.

  • Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find qualified charities; donations to these charities may be tax-deductible.

  • Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution. Scam artists may use this information to steal a donor’s identity and money.
  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
  • Consult IRS Publication 526, Charitable Contributions, available on IRS.gov. This free booklet describes the tax rules that apply to making tax-deductible donations. Among other things, it also provides complete details on what records to keep.


Bogus websites may solicit funds for victims of this tragedy. These sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade people to send money or provide personal financial information that can be used to steal identities or financial resources.

Additionally, scammers often send emails that steer recipients to bogus websites that appear to be affiliated with legitimate charitable causes.


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