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Greenville Business Magazine

The Business Narrative: Fighting Fraud

Apr 08, 2024 09:45AM ● By Donna Walker

IRS Warns About Fake Charities Exploiting Taxpayer Generosity

The Internal Revenue Service warned taxpayers about groups masquerading as charitable organizations to attract donations from unsuspecting contributors.

 

In natural disasters and other tragic events, it’s common for compassionate individuals to donate money to help the victims, IRS officials say.

 

Unfortunately, scammers often use fake charities as a cover to not only obtain money but also gather sensitive personal and financial information that can be exploited for tax-related identity fraud, the officials say.

 

“We see repeated instances of scammers using major disasters as a way to prey on well-meaning taxpayers,” said IRS Commissioner Danny Werfel.

 

Werfel added, “In these tragic situations, many people want to help, but con artists too frequently come in posing as charitable groups to take advantage of the situation, stealing money and personal information. People should remember it’s important to never feel pressured to give donations immediately. They should do some research and only donate to clearly established charities that help victims.”

 

As a member of the Security Summit, the IRS has worked with state tax agencies and the nation’s tax industry for nine years to cooperatively implement a variety of internal security measures to protect taxpayers.

 

The collaborative effort by the Summit partners also has focused on educating taxpayers about scams and fraudulent schemes throughout the year, which can lead to tax-related identity theft.

 

Real tragedies; fake charities

 

During times of disasters, fake charities become a concern, according to IRS officials.

 

The officials say these deceitful organizations are created by scammers who take advantage of people’s generosity, and they solicit money and personal information to victimize individuals through identity theft.

 

When taxpayers decide to contribute funds or goods to an organization, they may qualify for a deduction on their tax return, but only if they itemize their deductions.

 

It is important to remember that charitable donations are valid when directed toward IRS-recognized tax-exempt organizations.

 

Individuals intending to donate can use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to ensure legitimacy.

 

IRS officials say beware of scammers who might use email communications or manipulate caller IDs to deceive people into donating funds to charities.

 

The fraudsters often target groups such as seniors and those with limited English proficiency.

 

Here are some helpful tips from the IRS to avoid getting scammed:

 

Don’t give in to pressure. Scammers often create situations to get people to make payments. Genuine charities are always grateful for donations. Donors should take their time and research before making a charitable contribution.

 

Exercise caution when making donation payments. Avoid any charity that requests gift card numbers or wire transfers. It’s better to pay by credit card or check after ensuring the charity’s authenticity.

 

Verify the legitimacy of the charity. Scammers often use similar-sounding names for charities to confuse people. Before donating, potential donors need to ask the fundraiser for the charity's name, website and mailing address so they can independently verify its authenticity.

 

Avoid sharing too much information. Scammers are always on the lookout for both money and personal data. Never disclose Social Security numbers, credit card numbers or Personal Identification Numbers.

 

Only provide bank or credit card details after confirming the charity's legitimacy.

 

Report fraud

The IRS encourages individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.

 

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper form and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

 

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677 3405
Fax: 877 477 9135

 

Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for a monetary award.

 

For details, refer to the sections on Abusive Tax Schemes and Abusive Tax Return Preparers.

USDA Deputy Secretary Xochitl Torres Small Visits South Carolina State University

U.S. Agriculture (USDA) Deputy Secretary Xochitl Torres Small visited South Carolina State University (SCSU) on Thursday, April 4, to highlight the department’s ongoing support for agricultural research and education at SCSU and met with students to discuss career opportunities available for the next generation of farmers, foresters, conservationists, and entrepreneurs.

 

The deputy’s visit included stops at three sites where students, faculty and university partners conduct cutting-edge studies and demonstrations to support innovation in agriculture: the SCSU 1890 Research & Demonstration Farm, SCSU’s Crawford Zimmerman Building, and the SCSU Planetarium.

 

Over the course of several weeks, Small will visit campuses across the country to underscore how colleges and universities are working with USDA to advance rural prosperity, climate-smart practices, competition, and sustainability.

 

Small will also highlight how USDA is making a difference on college campuses, from new funding for education and training to cutting edge research to economic development to build a food and agriculture food system.

 

The deputy’s college tour will include visits to land-grant colleges and universities, 1994 Institutions, Hispanic-serving institutions, community colleges, and state schools.

 

USDA’s National Institute of Food and Agriculture (NIFA) has provided more than $5 billion in support to land-grant university campuses since fiscal year 2021, offering student-centered scholarships to recruit, mentor, and train undergraduate students for jobs in food and agricultural sciences and related fields.

 

There are 54 students being supported by that scholarship, including seven 1890 National Scholars on South Carolina State’s campus.  

 

The USDA 1890 National Scholars Program is aimed at bolstering educational and career opportunities for students from rural or underserved communities around the country.

 

It was established in 1992 as part of the partnership between USDA and the 1890 land-grant universities.

Report: Licensures for Lawfully Present Workforce Will Boost S.C. economy, Help Solve Workforce Shortages

Allowing 5,500 legally authorized workers in South Carolina to be eligible for professional and occupational licenses could add up to $67.7 million additional economic output to the state economy and help solve critical workforce shortages according to a new report commissioned by Hispanic Alliance and authored by Clemson University researchers.

 

“What the report shows is that allowing those with legal authorization to work to pursue licensure in their chosen field will benefit everyone in the state. If only 15 percent of eligible individuals entered the workforce, the potential economic output added to our economy is $67.7 million, and around 947 workers could pursue higher paying jobs in licensed fields, filling gaps in industries with shortages like nursing and education,” said Andrew Skinner, director of public relations and development for Hispanic Alliance.

 

Current South Carolina law prevents those authorized to work from being eligible for more than 40 occupations and professions that require licensure.

 

The report focuses on the lost economic impact from this policy barrier, specifically for recipients of authorization through Deferred Action for Childhood Arrivals (DACA).

 

“My mother brought me to the United States when I was eight years old, and I am grateful for all she sacrificed to do so. My dream in school was to become a dental hygienist, but I found out while still in high school that wouldn’t be possible for me in South Carolina,” said Cesar Salas, development and public relations coordinator, Hispanic Alliance.

 

Salas added, “I then wanted to pursue a career in real estate, but that also requires a license in South Carolina. I am very fortunate to have the career I have now with the Hispanic Alliance and am hopeful for change for the other 5,500 DACA recipients in South Carolina who are facing similar barriers."

 

The report was unveiled in March at an event organized by Hispanic Alliance, presented in partnership with Ten at the Top.

 

During a panel discussion, State Rep. Neal Collins (Republican – Greenville, Pickens Counties) discussed his longtime support of legislation that would allow professional and occupational licensure for DACA recipients. 

 

When asked about the politics surrounding the policy, Collins said, “I think a big part of the politics is helping people realize that it is not a question of whether they should be here. These individuals are lawfully present. They maintain all of the strict requirements to receive their authorization to work and renew their application every two years."

 

Collins added, We have some of these bright young people leaving South Carolina and going to other states - North Carolina for example - for higher education and to work in fields where we have critical shortages.”

 

A question from the audience prompted the panel to comment on the investment that the state makes in DACA recipients through the K-12 public education system.

 

Scott Cochran, president of Spartanburg Methodist College. said, “From a financial and educational perspective, South Carolina taxpayers invest in these young people with their K-12 education but then prevents them from being employed to their full potential.

 

Cochran added, “A student could be valedictorian of their high school class, but the law says you cannot obtain a professional or occupational license in more than 40 different fields. To me, that does not make good fiscal sense. We want these young people to be employed to their full potential and be productive members of society.”

 

The panel also discussed workforce shortages and how S.C. House Bill 3288 could help address critical needs in professions like teaching and nursing.

 

“Health care is our number one employer in Travelers Rest. If I could bring a healthcare employer just one more qualified nurse, that would make a huge difference for us from a workforce perspective,” said Brandy Amidon, mayor of Travelers Rest and co-president of Brains.

 

The new report didn’t include data on education, and researchers note that including this data would likely lead to even higher economic impact for the state.

 

Read the report and learn more at hispanicalliancesc.com/allied4work.

 

The Allied4Work event is the first in a three-part Allied4SC series.

 

The second event Allied4Health, presented in partnership with Bon Secours St. Francis, will unveil research findings of health-care needs in the Hispanic community and conversation surrounding the resources being developed to address quality of care, ethnic disparities, and advocate for health equity for all residents of South Carolina.

10th Anniversary Advocacy Day for Access & Independence at South Carolina Statehouse

The SC Access & Independence Network, in association with the SC Statewide Independent Living Council, will host their 10th Anniversary Advocacy Day for Access & Independence on Tuesday, April 16, 2024, from 10 a.m. to 12 p.m. at the S.C. Statehouse.

 

The event will also be streamed live online to viewers worldwide.

 

The annual Advocacy Day for Access & Independence will allow the disability community, advocates, and supporters to rally and call on South Carolina lawmakers to address barriers to independence for people with disabilities.

 

The 2024 area of focus is Community Living, which will be defined by the ways that barriers to employment, transportation, housing, and disability rights impact the ability of disabled people to live fully integrated in their communities.

 

The goal of the rally on the north steps of the Statehouse will be to unlock the barriers to independence people with disabilities experience.

 

The rally will include several speakers with disabilities and their political and business allies. Speakers include S.C. Sens. Katrina Shealy and Tom Davis, and leaders and advocates from the disability community.

 

Officials said the disability community is ready to see an end to discrimination against people with disabilities and increased access to employment, transportation, and housing, as well as assurance that their rights will be protected.

 

Advocacy Day for Access & Independence was created as part of the State Plan on Independent Living with the support of over 50 organizations statewide to unlock the barriers that prevent people with disabilities from having equal access and opportunity.

 

Officials say policies regarding people with disabilities across the state encourage dependence on state programs and the government instead of promoting independence and inclusion.

 

South Carolinians with disabilities are often discriminated against in education, employment, voting, parenting, and daily life, the officials say.

 

The official issue booklet contains details on the barriers that impact people with disabilities and calls to action on how South Carolina lawmakers can move the state forward.

 

The booklet can also be found at  https://unlockingbarriers-sc.org/barriers

 

Participants may register for the free event at www.unlockingbarriers-sc.org/register or by calling 800-681-7715 or via the TTY line at (803) 779-0949.

 

Able SC is a disability-led organization seeking transformational changes in systems, communities, and individuals. 

 

The South Carolina Statewide Independent Living Council (SILC) is a nonprofit organization dedicated to promoting independent living for people with disabilities throughout the state.

 

SILC members are appointed by the governor of South Carolina. Federal regulations require at least 51 percent of SILC members be people with significant disabilities.

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