Affordable Care Act Payment Scam Involving Tax Preparers

March 19, 2015

The IRS is warning taxpayers that some tax preparers are improperly telling their clients to make Individual Shared Responsibility Payments directly to them, instead of to the Treasury with their tax returns, or in response to an IRS letter.

The IRS alert says:

“The IRS has received several reports of this kind of unscrupulous activity. In some cases, return preparers have told taxpayers to make the payment directly to them, even though the taxpayer had Medicaid or other health coverage and doesn’t need to make the shared responsibility payment at all. In some parts of the country, unscrupulous return preparers are targeting taxpayers with limited English proficiency and, in particular, those who primarily speak Spanish."

Read the full alert:

If you aren’t sure if you need to make an Individual Shared Responsibility Payment, you can use the IRS’s Interactive Tax Assistant tool to find out: Am I required to make an Individual Shared Responsibility Payment?.

If you do need to make a payment, the Taxpayer Advocate Service has an Individual Shared Responsibility Payment Estimator to help estimate what you owe.

The Taxpayer Advocate Service also has information on how to choose a tax professional, and what to do if you are a victim of return preparer fraud.

IRS.gov has similar information available in Spanish:

IRS.gov - Diez Consejos del IRS para Ayudarle a Seleccionar a un Preparador de Impuestos

IRS Publicación 4445G SP, ¿Cómo Seleccionar un Preparador de Declaraciones?