NY AG Warns of Tax Scams, Urges Use of ‘Direct File Service’

NUEVA YORK – The New York State Attorney General, Letitia James, issued a consumer alert today urging New Yorkers to avoid common tax scams and check their eligibility for the free ‘Direct File Service’ before Tax Day on April 15th. The ‘Direct File’ program allows eligible taxpayers to file federal and state taxes online at no cost, saving New Yorkers approximately $260 in preparation fees.

‘While tax season can be stressful, New Yorkers deserve the peace of mind knowing they are protected from scams and won’t have to pay hundreds just to file their taxes,’ said Attorney General James. ‘The ‘Direct File’ program is a secure and easy way to file taxes for free and save hundreds of dollars. I recommend all residents stay vigilant against scammers trying to exploit tax season to defraud New Yorkers and report any suspected fraud to my office.’

Common fraud tactics New Yorkers should be aware of include:

– Scammers claiming you owe past tax debts and insisting on payment via a pre-paid credit card or gift card. Legitimate government agencies do not seek debt payments through these means;

– Being told that your legitimate IRS tax refund was an error and, therefore, must be returned. If you owe money, you will receive a written notice identifying the agency and reason for your debt, not a phone call, email, or text message;

– Scammers making false promises of free tax preparation services only to trick people into paying for those services;

– Tax preparers falsely claiming they can get your tax refund faster and then charging high interest rates and fees; and

– Any unsolicited call, text message, or email asking for personal information or verifying your financial account details.

The New York State Department of Taxation and Finance estimates that 3.4 million New Yorkers could use the ‘Direct File’ program this year. New Yorkers with salaries of up to $200,000 in 2024, or $250,000 if filing a joint return, may qualify. Follow these steps to determine your eligibility for the ‘Direct File’ program:

– Check if you meet the requirements for the New York State ‘Direct File’ program for filing your state tax return.

– Check if you meet the requirements for the IRS ‘Direct File’ program for filing your federal tax return.

If eligible, start your federal return on the IRS ‘Direct File’ website. After submitting your federal return, you will be directed to the New York State ‘Direct File’ program to file your state taxes.

More information about ‘Direct File’ is available on the New York State Department of Taxation and Finance website.

In addition to using ‘Direct File,’ Attorney General James offers the following tips for New Yorkers to protect themselves during tax season:

– Legitimate government organizations never threaten arrest or deportation for non-payment of a debt and never insist that consumers pay via pre-paid cards or gift cards.

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