BAKERSFIELD, Calif. (KERO) — This year's tax filing season kicked off on January 23, 2023, and the Internal Revenue Service is urging people to make sure they file an accurate tax return, and also sharing way to avoid issues with fraud or scams.
FILING TIPS FOR INCOME TAXES
The filing deadline for income tax returns in 2023 is April 18, and although that day is a few months from now, the IRS is reminding everyone to be on the lookout for scam activity to ensure your filing process is as smooth and safe as possible.
IRS Spokesperson Raphael Tulino reminds taxpayers that the IRS has specific ways it contacts people and isn't just going to call people randomly demanding information or money.
"Under no circumstance is the IRS going to reach out to you out of the blue, uninitiated, via phone call or text, otherwise known as phishing, via email or random phone call, especially demanding or instructing you to do something a certain way," said Tulino.
Tulino says that while ignoring and blocking suspicious text, calls, and emails is important, another key step in the process of filing your taxes safely through a tax prepare is to make sure that preparer has Preparer Tax Identification Number (PTIN). This number verifies the legitimacy of the preparer and is one of the ways you can avoid being scammed.
"What to look for to find one, there's lots of things that you can do," said Tulino. "Word of mouth is always a good idea. Who are your friends and family using? If you do choose one through another way, through a website, ask them questions and interview them, and make sure you feel comfortable with their services and what they provide you."
Tulino says while there is nothing wrong with choosing to file your taxes early, it is important to make sure you have collected all the necessary documents and that there won't be more coming that might alter your return. He recommends being patient and filing when ready as the safest way to go.
"If you file when ready, then you avoid the possibility of having to amend a return, either because you omitted something, or worse, you forgot about a tax benefit or submitted a return out of haste and overlooked a tax benefit that could either reduce your tax bill or increase your refund," said Tulino, adding that no matter which tax preparer you decide to file with, you are responsible for all the information you provide.
If you believe you've been the victim of a tax scam, Tulino says to immediately report it to the IRS.
"If you want to report a third party as a referral to IRS for somebody who is not taking care of their business appropriately, there is a form for that on IRS.gov. The form you use, fill out, and mail in is the way you would send information to the IRS about somebody you feel is doing something fraudulently based on their taxes," said Tulino.
He also says it's important to choose the paperless filing option in order to avoid potential mail theft.
FILING TIPS FOR PROPERTY TAXES
Individual income taxes aren't the only kinds of filing being done right now. Property taxes are also coming due in April, and Jordan Kaufman, Kern County Treasurer and Tax Collector, says it's also important for property owners to note when they need to have their property taxes paid in order to avoid penalties.
"The deadline for property taxes for the second installment is April 10th," said Kaufman. "Some people sometimes get confused, so it's very important.
Kaufman explains that property taxes are calculated by taking one percent of the assessed value of the property. For example: If your properties were valued at $100,000, you would be responsible for $1,000 in property taxes. Property owners who fail to pay their property taxes on time could face penalty fees.
"If you do not pay your taxes by the deadline, immediately the next day, a 10 percent penalty attaches to the bill," said Kaufman. "It's very important to pay it on time, because that 10 percent penalty attaches the very next day, and that is applied to both the first installment that's due December 10 and the second installment that is due April 10."
First time homebuyers should also be aware of supplemental taxes, which are usually. not included in escrow.
"For a first time home buyer, the supplemental tax would be the difference between what the assessed value was and what they bought the property for. That difference is taxed, and that is a separate, supplemental bill," said Kaufman.
Although taxpayers have the option to pay their property taxes either online or by mail, Kaufman says that just like with filing individual income taxes, taking the online route is safer.
"You will get a confirmation right away that you have made a payment versus if you drop it in the mail. There are documented cases of mail fraud and things that happened to checks along the way, so we always encourage people to pay online, because it is immediate and it is very easy," said Kaufman. "You're not relying on the Post Office or anything like that."
