The Survive and Thrive Boomer Guide

Happy Tax Day, April 15

I filed my taxes last week. I’m so happy I have them done.

If you’d like a free item, especially fast food or sugar, on Tax Day, see my article “Companies Offering Free Items to Help Reduce Your Income Tax Stress.”

I’d go get a donut from Krispy Kreme, which is free if you buy milk, or Potato Cakes from Arby’s, but I had wine and chocolate at a fundraiser yesterday and I’m not planning to go out today so a special trip for free items would be a waste of gas.

However, some of the freebies last beyond April 15. Office Depot's offer of free shredding of five pounds of documents expires May 1. I don’t have to worry about the sugar content of that one.

If you get an e-mail from the Internal Revenue Service or the company you used to file your taxes electronically about a problem with your taxes, check it out carefully. Last year, I received a notice my return was incomplete, but it was a legitimate e-mail. Scammers are taking advantage of e-mails like these to get private information so they can steal your money or identity. Be an alert, informed consumer.

Have a great day. If you’re still struggling with your taxes, my best wishes to you.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax scams as Tax Day approaches

April 15 is almost here, but that doesn’t mean consumers can’t get scammed by unscrupulous tax preparers.

“Tax scams peak around tax filing day,” Oklahoma Attorney General Scott Pruitt said. “We cannot stress enough to watch out for those who promise faster turnarounds, bigger refunds, or credits. What looks like a good deal at first, could cost you more in the long run.”

The Internal Revenue Service points out scams to be aware of this year:

• Identity thieves are using people’s Social Security numbers or other identifying information to fraudulently file tax returns and claim refunds.

• Fake e-mails, known as phishing, from the IRS are being used to attempt to obtain confidential personal and financial information so the sender can steal consumers’ identity. Never respond to these e-mails or open the attachments.

• Unscrupulous tax preparers prey on taxpayers by encouraging consumers to claim false information for larger refunds, which can result in fraud or theft.  

• Scammers often promote that “free money” is available from the IRS and claim that securing this money requires little or no documentation. Some even guarantee fraudulent Social Security refunds or rebates.

To avoid becoming a victim this tax season, the Attorney Generals Office’s offers these tax safety tips:

• Be wary of offers to split your refund in exchange for filing your return.

• When you file your taxes electronically, use a software provider that’s authorized by the IRS. If using a tax preparer, make sure they’re authorized to do so by the IRS.

• Look out for unsolicited offers to prepare your taxes from an unfamiliar company or one that’s located far away.

Pruitt reminds taxpayers that they’re responsible for what’s on their returns even if someone else prepared it for them.

If something sounds too good to be true, then it probably is, he said. Staying alert and being cautious can help prevent costly mistakes.

If you think you may be at risk or have been a victim of tax fraud, contact the IRS at 800-908-4490. If you have questions about your taxes, visit www.IRS.gov or call or visit your local IRS office.

Copyright 2013, Rita R. Robison, Consumer Specialist

Taxes, midlife changes, retirement, destructive behavior, and compassion are the topics for this week’s Best of Boomer Blogs

Lisa Garon Froman of TAO Flashes is the host for this week’s Best of Boomer Blogs #301.

The boomer blog roundup is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

With half of the country covered in snow in late winter-early spring snowstorms, baby boomer bloggers are writing about fraudulent tax preparation schemes, midlife change, 57 percent of U.S. workers reporting less than $25,000 in total household savings/investments excluding their homes, how trying to be “cool” leads to destructive behavior, and the philosophies of Lao Tzu in “Tao Te Ching.”

Be sure to check back next week to see what baby boomer bloggers are thinking and writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax preparers who are scam artists

The deadline for filing personal income tax returns is less than a month away

Each year, consumers file thousands of complaints about tax preparation schemes. 

Some scammers prey on seniors or college students by impersonating tax authorities, soliciting follow up information on a tax form, and collecting identification numbers and social security information, which is then used to steal people’s money or identities.

Others have used “spoofing technology” to make their caller ID numbers come up to look like they’re from the Internal Revenue Service.

Taxpayers should be watch out for tax preparation businesses that advertise low fees to get the customer in the door, but then increase the final fee by hundreds of dollars claiming the tax return was more complicated than anticipated. Another trick fraudulent tax preparers use is to electronically withdraw more than the agreed on fee without notice to the consumer.

As taxpayers look for help in filing their taxes, New York Attorney General Eric T. Schneiderman offers the following tips for consumers:

• Use recognizable and established companies.

• Check the tax preparer's qualifications.

• Check the tax preparer's history through the Better Business Bureau at www.bbb.org.

• Ask for a written estimate of all fees.

• Avoid those who base their fees on a percentage of your refund.

• Make sure the tax preparer is accessible, even after the April due date.

• Never sign a blank return.

• Review entire return before signing.

• Make sure the preparer signs the tax form and includes a Preparer Tax Identification Number.

• Avoid "too good to be true" promises.

Consumers should also beware of refund anticipation loans or RALs and refund anticipation checks or RACs.

RALs are often marketed as "instant" or "24-hour" refunds but are actually high cost loans that come with fees and interest that reduce the amount of any refund.

RACs are temporary bank accounts established on behalf of a taxpayer into which a direct deposit refund can be received but these also come with fees that will reduce the consumer’s refund.

The tax preparer must give the consumer a written disclosure that explains:

• You aren’t required to take out a refund anticipation loan or refund anticipation check in order to receive your tax refund.

• The amount of fees and interest you’ll have to pay if you take out a refund anticipation loan or refund anticipation check.

• The amount you’ll receive after the fees and interest are deducted.

• The annual percentage rate of interest that you’ll be charged.

• The amount your refund will be if you don’t take out a refund anticipation loan

Consumers can avoid the costs of refund anticipation loans and checks by filing their return electronically and having refunds either mailed or directly deposited in their own bank account.

Check with your local library to see if there are any groups in your area that offer free income preparation assistance for older adults.

For additional information, see the Better Business Bureau’s “Choosing a Tax Preparer,” AARP’s “Don’t Get Scammed by Phony IRS Agents,” and the IRS’s “How to Choose a Tax Return Preparer.”

Copyright 2013, Rita R. Robison, Consumer Specialist

Obama did a better job this year of addressing consumer needs in his State of the Union speech

By Rita R. Robison

Maybe it was Occupy Wall Street or just the fact that he’s finally getting the message that consumers are suffering, but President Obama’s State of the Union address contained more for consumers this year than his 2011 speech.

Obama talked about the new Consumer Financial Protection Bureau and its role in keeping an eye on credit card, payday loan, and mortgage companies.

He also said he will set up a unit in the Justice Department, which will work with leading state attorneys general, to investigate the business practices that led to the housing crisis. This action is long overdue, but at least it’s happening.

On income equality, Obama suggested that millionaires pay more in taxes, at least the same percentage that average Americans pay. He suggested a rate of 30 percent.

Obama also talked about creating jobs, in clean energy and through public works projects, and the importance of keeping the slowly growing economy moving in a positive direction.

While Obama received lots of applause when he talked about cutting government programs and spending, it’s not an easy task to figure out how to make government leaner and work better.

Not so positive for consumers was Obama’s support of offshore drilling for oil and his willingness to work with Congress to cut Medicare and Social Security benefits.    

Copyright 2012, Rita R. Robison, Consumer Specialist

On Tax Day, urge your members of Congress to close tax loopholes

Happy Income Tax Day. I’m happy because my tax return has been filed.

What I’m not happy about is that many big corporations pay nothing or very little in taxes.

Did you know that?

• The United States loses approximately $100 billion in tax revenues every year due to corporations and individuals sending their money to offshore tax havens.

• General Electric appears to have paid no federal income taxes in 2010, although it reported profits in the United States of $5.1 billion. The biggest company in the country, GE has lobbied hard for tax breaks and loopholes in the federal tax code and shifted many of its profits to tax havens to avoid paying U.S. taxes. GE employs nearly 1,000 people in its tax department to help exploit those loopholes, but has laid off one-fifth of its U.S.-based workers since 2002.

• Goldman Sachs, which reported more than $2 billion in profit in 2008, was able to use its 29 tax haven subsidiaries to reduce its federal tax bill to just $14 million. That means that Goldman Sachs’ CEO Lloyd Blankfein, who made $42.9 million that year, earned more than three times the amount that the company paid in federal taxes.

See “The Tax Shell Game – How Much Offshore Tax Havens Cost You in 2010” by the U.S. PIRG Education Fund for more information.

Contact your representatives in Congress to let them know you’d like to see giant corporations pay their fair share.

Copyright 2011, Rita R. Robison, Consumer Specialist

Beware of tax scams as IRS deadline approaches

By Rita R. Robison, Consumer Specialist

Whether you’ve filed your taxes or not, be on the lookout for tax scams. If you still need to file, it’s important to choose a reputable tax preparer. If you’ve already filed, beware of strange communications about your refund that appear to come from your bank or the Internal Revenue Service.

“It’s the time of year for tax filers to steer clear of unqualified preparers that are just trying to make a buck and may not be very honest,” Dale Mingilton, president and CEO of the BBB Serving Denver/Boulder, said in a statement. “The end of tax season is also when scammers make an extra push to get people to fall for phishing attempts.”

A common tax scam involves phishing for your private information by someone who’s impersonating the IRS. They may say in a phone call or e-mail that there’s a problem with your refund, and they need your personal and/or financial information to resolve the issue. The IRS doesn’t use these methods to contact consumers.

Unethical tax preparers skim part of their clients’ refunds, overcharge for services, and attract clients be making inflated promises. Federal courts have issued hundreds of injunctions ordering individuals to stop preparing returns, and the Department of Justice has complaints pending against dozens of others, according to the IRS.

The BBB offers these tips to avoid scams as tax season wraps up:

• Beware of any phishing e-mails or phone calls that seem to be from the IRS. Don’t give personal information or click on links.

• Let the IRS know if you’re contacted in this manner. Ask the IRS representative if the agency is trying to reach you. Forward a copy of any e-mail you receive.

• Beware of anyone who pressures you to sign up for immediate payment of your refund that involves high-interest loan.

• Beware of those who boast they can get larger refunds than their competitors.

• Beware of anyone who bases his or her fee on a percentage of the refund amount, rather than the complexity of the tax return.

• Check out tax preparers with the BBB at www.bbb.org.

Good luck preparing your taxes. I just finished caculating mine. I'm glad it's done. What a job.

Copyright 2011, Rita R. Robison, Consumer Specialist

What were your best and worst consumer experiences this week?

By Rita R. Robison, Consumer Specialist

What were your best and worst consumer experiences this week?

Which consumer happenings cheered you this week and which ones made you want to scream or weep?

Here are my best and worst consumer experiences this week:

My best: Attending a rally at the state capital

On Friday, I went to the state capital In Olympia, Wash., to take photos of a rally sponsored by unions throughout the state.

More than 7,000 people attended. I’ve never seen so many people at a rally. The steps of the Legislative Building and the Temple of Justice were packed, as was the space in between the two buildings.

Workers urged lawmakers to cut corporate tax breaks rather than slash important programs that citizens, especially the unemployed and those with low incomes, need.

It was great to see so many people gathering to make their voices heard.

One sign summed up the event: “Put People First.”

My worst: The budget proposal by the House

Despite the huge rally Friday, the state House of Representatives on Saturday passed a budget that cuts nearly $485 million from higher education, according to The Seattle Times article “State House Passes Budget Plan With $4.4B in Cuts.”

The House plan also would stop automatic increases to state-employee retirement plans to save more than $360 million, and slashes another $216 million from programs to reduce class sizes in kindergarten through fourth grade. Cutting state-employee salaries would save about $177 million.

Copyright 2011, Rita R. Robison, Consumer Specialist

Consumer groups applaud FDIC action against unsafe and unsound refund anticipation loans

Consumer groups -- the Consumer Federation of America, National Consumer Law Center, and Community Reinvestment Association of North Carolina -- applaud the announcement that the FDIC has notified Republic Bank & Trust of Kentucky that the bank's high cost refund anticipation loans are unsafe and unsound.

The loans are short-term loans that are paid back from a tax refund.

For more information, see my WalletPop's Consumer Ally article "Feds Warn Bank Making Tax Refund Anticipation Loans That They're Unsafe."

Copyright 2011, Rita R. Robison, Consumer Specialist

Top 10 worst environmental stories of 2010

The Environmental Working Group polled its staff and came up with the environmental happenings they thought had the worst impact last year. Here are the results:

 
 

1. BP's Gulf oil spill was the top environmental disaster of 2010, with slow response, use of dispersants, and secrecy about what's in the dispersants.

2. Congress failed to ban Bisphenol A, an endocrine-disrupting chemical, in baby bottles and children's sippy cups.

3. Brazilian Blowout, a hair-straightening product, is shown to have high levels of toxic formaldehyde despite the company's insistence that it's "formaldehyde free."

4. The climate change bill dies in the U.S. Senate, due to vocal and persuasive arguments by climate change skeptics and protectors of the energy status quo.

5. Chromium-6, a carcinogen, was found in tap water samples in 31 of 35 cities tested by the Environmental Working Group.

6. California's "Green Chemistry" rule is gutted, when regulators announced weak rules for carrying out the state's pioneering law designed to reduce the use of toxic substances in consumer products and shift toward safer alternatives.

7. Texas, Ohio, and other states approved the use of hydraulic fracturing to extract natural gas from deep rock formations beneath school property, because they were tempted by the revenue they could gain by leasing mineral rights to drilling companies.

8. The U.S. Food and Drug Administration hasn’t adopted sunscreen rules that would ensure that sunscreens are safe, effective, and don't make exaggerated claims, despite the fact that the agency has been working on the rules for 32 years.

9. Congress failed to revise the Toxic Substances Control Act, the 1976 environmental law that is inadequate and has never been updated.

10. Congress reauthorized the tax credit that pays gas refiners 45 cents a gallon to blend corn ethanol into gasoline and the excise tax that blocks imports of cheaper Brazilian ethanol made from cane sugar.

See the Environmental Working Group’s article for more information on these environmental disasters.

Let’s hope that 2011 is a better year for the environment and consumers.

Copyright 2011, Rita R. Robison, Consumer Specialist