Prepare Now for Emergencies & IRS Issues Tax Fraud Warning Targeting the Tribal Community
As National Preparedness Month comes to a close, individuals and businesses are encouraged to make or update emergency plans and safeguard important documents. Taking a few steps now can make it easier to recover after a disaster, file insurance claims, apply for assistance, or claim disaster-related tax benefits.
Taxpayers can prepare by taking these steps:
Keep key documents safe. Store tax returns, birth certificates, social security cards, insurance policies, property titles, and other important records in waterproof and fireproof containers.
Create electronic copies. Consider scanning paper records and saving electronic copies on a secure device or in a trusted cloud storage service.
Document valuable property. Photos or videos of homes, businesses, vehicles, and other property can help support insurance claims and document property losses for tax purposes after a disaster.
Review emergency plans. Review and update emergency plans each year to make sure they reflect current circumstances and contact information.
Know how to access tax records. Taxpayers can use their IRS Individual Online Account to access tax information, including transcripts, notices and other records.
Taking these simple steps now can help individuals and businesses be better prepared and make the recovery process easier if disaster strikes.
The IRS is warning taxpayers, tribal communities, businesses, and tax professionals about promoters selling fake "Tribal Tax Credits", "Native American Tax Credits", "Sovereign Tribal Tax Credits", or similar schemes. These federal tax credits do not exist. Taxpayers who improperly claim them may face civil and criminal penalties. Be especially cautious if an offer includes:
Claims that only a limited number of credits are available or that you must act quickly.
References to government interagency agreements.
Legal opinions that cannot be independently verified with an attorney.
Requests to sign a nondisclosure or confidentiality agreement.
Before proceeding with any such offer, contact Zulch Tax as your trusted tax professional or your financial advisor and independently verify the claims.
If you suspect a fraudulent scheme, report it to the IRS at https://www.irs.gov/help/report-fraud