ASK THE CALIFORNIA EMPLOYMENT TAX AND PAYROLL TAX ATTORNEY – A BIT OF HOLIDAY CHEER FROM BOGUS CHARITIES
By Robert S. Schriebman
This time of year, we are bombarded by charities. However, not all charities deserve your hard-earned money. The combination of the holiday shopping season, the pandemic and the 2022 tax filing season provide additional opportunities for criminals to steal your money. On November 30, 2021 the IRS issued a press release warning the public to be wary of bogus charities. IR-2021-237.
The IRS sends out these warnings every year about this time, but there was more urgency due to the pandemic.
Criminals set up bogus charities not only to bank your money but to steal sensitive information as well.
Here are a few tips from the IRS:
- Avoid giving over the telephone and never let anyone pressure you. Take the time to do some research before you give.
- Confirm that the charity is real. Always check out the exact name, website, and mailing address before you give. These crooks are smart and they create names that are very close to long-standing legitimate charities.
- Be careful how you make your donation. The IRS warns to avoid donations by giving numbers from a gift card or by wiring money. Its best to pay by check or credit card after you do your homework.
A few tips from yours truly:
- Check out the charity by consulting the IRS’ “Tax Exempt Organization Search Tool.” The IRS has a huge list of legal charities.
- Even though the charity is legal and long-recognized, you might want to check to see how much of your dollar is actually going for charitable purposes and not commissions for third-party referrals and fat compensation to executives. It is sometimes shocking to learn how little of your charitable dollar is being used to do good.
I recently checked out a charity advertising on tv this time of year that request money for food packages for disadvantaged persons in the holy land. After doing a bit of researched I learned that the president gets a salary of close to $2 million a year and his child receives a salary of over half a million dollars! I’ll pass on this charity.
Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD and he is not employed by the EDD or any other agency of the State of California.
Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and California Taxation Practice and Procedure,” both published by Commerce Clearing House.
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