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Deceptive Notices Try to Obtain Your Hard-Earned Dollars

Criminals and fraudsters sometimes take advantage of tough economic times by increasing their efforts to defraud a vulnerable public as well as struggling hard-working business people. During our current struggling economy, be alert for solicitations for personal and financial information—even if the solicitation seems legitimate.

One of our clients recently came across a new deceptive, official-looking letter that required a fee to be sent in with a completed form. The letter was titled, "Annual Corporate Compliance," and asked for business information and corporate officer information, but did not require an employer identification number or Social Security number. The form appears to have been sent to those doing business in Indiana. The notice requests a fee of $125 to be sent in with the completed form. The letter looks official, but we have inquired with the state of Indiana and have found that the state does not have such a form. Accordingly, if you have received such a request, it should be ignored.

Additionally, several nongovernmental businesses will send information regarding unclaimed property and, for a fee of $100–$200 or a percentage of what they find, will locate such property on your behalf. Since most states keep a list of their unclaimed property online, there is no need to pay a fee to locate such property. States have become more aggressive in obtaining unclaimed property. They will sometimes get property that you might think is in your possession (i.e., paper stock certificates).

The Internal Revenue Service (IRS) Web site warns to never reveal your Social Security number or employer identification number to someone claiming to be from the IRS. The IRS will never request this information over the phone or in letter form. Instead, the IRS uses the information on your tax return for correspondence. State practices regarding Social Security numbers might be more difficult to discern. When in doubt, verify the authenticity of the request by directly contacting the state yourself.

The bottom line: Read letters and forms carefully. If something doesn't look right, it probably isn't official. However, feel free to contact us or contact the state directly with a phone number that has been obtained through official channels. Don't let these e-mails and letters waste your time and money. Be careful. Most importantly, do not give out private information unless you are sure the request is legitimate.

For more information, please contact Jennifer Perfect Tpylot at jtoyloy@BlackmanKallick.com or 312-980-3280 or your Blackman Kallick representative. Our thanks to Greg Mudd for his contribution to this article.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.