IRS Warns Florida Taxpayers of Hurricane-Related Charity Scams

Hurricanes Helene and Milton have caused an estimated $50 billion in damage, leaving many Florida residents homeless. Since late September, thousands of charities have sprung up in the aftermath of these storms aiming to help victims by supplying them with shelter, food, clothing, and medical care. While many of these charities are legitimate, an alarming number have turned out to be run by scammers, who use fake charities as a means of gathering sensitive personal and financial data from donors. The IRS recently issued a statement to taxpayers, warning them of the dangers of donating to charities without first verifying their legitimacy.
Claiming Charitable Deductions
Taxpayers who provide funds or goods to charities are often able to claim a deduction come tax season. These donations, however, are only legitimate if they are sent to qualified tax-exempt organizations that have officially been recognized by the IRS. Unfortunately, many scammers take the opportunities presented by natural disasters and other national crises to steal money and information from unsuspecting donors by creating fake charities. There are, however, steps that taxpayers can take to ensure that they are donating to a charity that will actually help victims of hurricanes Helene and Milton.
Verify the Charity’s Legitimacy
Taxpayers who wish to make donations, whether to a hurricane-related charity or another philanthropic fund should be sure to first check that the charity is legitimate. There are a number of ways to do so, but the IRS recommends using their Tax Exempt Organization Search (TEOS) tool, which can be used not only to verify that a charity is legitimate, but also to check its eligibility to receive tax-deductible donations.
Taking this step is important because many scammers purposely use names that sound like real charities to confuse donors and may also use emails, fake websites, and even change their caller IDs to fool potential donors. To avoid this, taxpayers should ask the alleged fundraiser for the name of the charity, as well as its website and mailing address, so that they can use the TEOS tool to verify the charity’s legitimacy.
Use Caution When Donating
Potential donors should also remain alert for inconsistencies in how donations are requested. For instance, taxpayers should never donate to a charity that asks for donations in gift cards or via money wiring. Paying by check or credit card is safest, but only after the charity has already been verified. It’s also important to remain wary of giving too much information, which is often what scammers are actually looking for. Be wary of providing personal details or your Social Security Number. Scammers also often try to pressure people into making immediate payments. The reality, however, is that legitimate charities don’t use these kinds of tactics and are happy to accept donations at any time. If you feel as though you are being rushed into making a donation, there’s a good chance that you’re being scammed.
Do You Need the Help of an Experienced Florida Tax Lawyer?
If you are eager to help the victims of hurricanes Helene and Milton, but are unsure of which charities are operating honestly and have been approved by the IRS, call our legal team for advice. You can set up a meeting with CPA, former FBI Special Agent, and experienced IRS & tax attorney Ronald Cutler, P.A. by calling our office at 386-490-9949 today.
Sources:
irs.gov/newsroom/irs-warns-taxpayers-of-charity-scams-following-recent-hurricanes-provides-tools-to-help-people-verify-legitimate-groups
cbsnews.com/news/helene-milton-losses-50-billion-each-hurricanes-rare/