Tag: tax scam

Internet Safety Tips

In this technological age, it seems like everything is at your fingertips. Have business to conduct?  Pull out your smart phone and get it done.  Have a report that is due while you are out of town and do not have all of the information you need?  Find an internet café or public wifi, pull out your laptop computer and get to work.  With the help of Wikipedia, Google, and any number of search sites, all of the information you need is at your fingertips.  Great, right?  It can be, but while it is easier for people to access information, it is also easier for hackers and scammers to access people’s personal information like social security numbers, bank accounts, and other personal information.  Once they have that information, Tada!  You now have six new credit cards, your debit card has been used to buy a new car half-way across the world, and you managed to get a speeding ticket in some hole-in-the-wall town three states over!  Your identity was stolen!  Scary, right? How can you protect yourself and your clients from this type of threat?  Here are some tips for practicing public (and personal) internet safety:

  1. Never log into your email using public wifi. Get yourself a mifi device. A mifi device is a personal wifi that uses cellular broadband to make a wifi connection. Not super convenient, or free, but using a mifi device is much more secure. You can password protect it and it pulls from a private source. You can also typically use your smartphone as a personal hotspot.
  2. Change your passwords frequently. If a hacker gains access to your password, they may try to access your system or account more than once over a period of time. Changing your password reduces the risk that they will have frequent access. It also keeps things like a keystroke logger, which is surveillance technology used to record keystrokes, from obtaining your password through repeated logins.
  3. Never email any documents that have your client’s personal information. If you do email any documents that have that type of information, make sure it is password protected and encrypted.
  4. Stop and read an email before opening any attachments or following any links. If you do not have your email set up to preview a message before opening, modify your settings to allow it. A lot of attachments and links in fake emails from scammers and hackers have viruses and other little nasty surprises that can corrupt your system or open a backdoor for someone to get to the rest of your information.
  5. Do not use a free email service for your business email. Yes, they are convenient, and better yet, free. However, they have the barest minimum of security when it comes to allowing junk through.

Computers can be a convenient tool that can make our lives easier in many ways.  By following these 5 rules, they can continue to be the tools that they are intended to be. Here at Tallgrass Title we are committed to protecting all of our associates and clients. Let us know how we can help you protect yourself and your clients from scammers and hackers.

Real Estate Taxes – 1st Half Due

In the state of Kansas, real estate taxes are paid in arrears. This means that the taxes for 2018 are not payable until the end of 2018. The county issues the tax statements in the beginning of November each year. The 1st half is due on December 20th and the 2nd half the following May.

How does this affect real estate sales?

As soon as the new tax statement is available at the county treasurer’s office in November, we obtain a copy of it. For all closings that happen between early November through the end of May, our closing agents ensure that the taxes are paid in full during closing. The only exception to this rule is when the Lender will pay the taxes directly out of the escrow account. For example, if a closing happens in February, the seller will pay the 2nd half taxes during closing, even though technically they are not due until May.

Why we do it this way:

In most counties, the new owners will not receive a 2nd half tax statement. So, it would be very easy to forget to pay the 2nd half in May. The treasurer’s office would think that the previous owners are responsible and send notices to them. However, the previous owners have already given a credit to the new owners to pay the bill (through the tax proration), so they actually aren’t responsible. As you can see, this can cause a lot of unnecessary stress on all the parties.

Things to tell buyers to reduce the stress:

  1. If there is an escrow account with the Lender, the taxes usually will be paid from it.
  2. The tax proration is a credit to the buyer for taxes that will come due in the future.
  3. We cannot be sure exactly how much the new taxes will be until the county tells us in November. But they usually are close to the amount due last year unless there was a building project.
  4. Realtors or buyers can always call our closing agents to ask questions. It doesn’t matter how many months ago the closing happened. We are happy to help you find the answers!

IRS Tax Scam Phone Calls

It’s that time again! Tax Season!  With tax season, come the tax scammers.  Starting in late January and early February, these are the calls that go something like this:

This is the IRS. We are contacting you regarding money you owe to the IRS.  If this money is not paid within 24 hours, a warrant for your arrest will be issued.  To avoid any further legal action please call xxx-xxx-xxxx. 

Holy cow! That is panic inducing, but do not fear, it is only a scam! Here are some clues that it is not really the IRS.

*The IRS will NOT:

  • Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.
  • Demand tax payment and not allow you to question or appeal the amount you owe.
  • Require that you pay your taxes a certain way. For example, demand that you pay with a prepaid debit card.
  • Ask for your credit or debit card numbers over the phone.
  • Threaten to bring in local police or other agencies to arrest you without paying.
  • Threaten you with a lawsuit.

The IRS will not call you if you owe them money. They will send you notice after notice regarding what you owe, and they will send it through the United States Postal Service a/k/a regular mail.  They will not email, call, fax, or use any other type of technological service. They will send it through good old-fashioned mail.

Their notices will include not only how much you owe, but where the discrepancy was, and how they calculated any interest or late fees. They will not just throw a number at you and expect you to take their word for it.  They give evidence and hard numbers to back up their claim, and they give you, the tax payer, a chance to appeal the claim or question the amount owed.

So, if you are on the receiving end of one of these scams, do not panic. Take a deep breath. Take note of their phone number. Get the spelling of their name (it may be a fake name), and hang up the phone. You can then notify your tax preparer, and/or you can contact the Treasury Inspector General for Tax Administration.  You should also report it to the Federal Trade Commission.

Contact the TIGTA at the “IRS Impersonation Scam Reporting” web page

Or

Contact the FTC at the “FTC Complaint Assistant” on FTC.gov.  Please add “IRS Telephone Scam” to the comments of your report.

Taxes are stressful enough. Do not add to your stress this year by worrying about coming up with money to pay off the IRS scammers. Just keep telling yourself;

The IRS will not call and threaten me! 

*This information was taken directly from https://www.irs.gov/newsroom/scam-calls-and-emails-using-irs-as-bait-persist. Check it out for more information regarding Tax Telephone and Phishing scams! 

For additional information check out this IRS YouTube video.