IRS Warns Taxpayers of Charity Scams Following Hurricane Milton

The Internal Revenue Service (IRS) in Washington, on Aug. 12, 2024. Madalina Vasiliu/The Epoch Times

The Internal Revenue Service (IRS) has issued a notice urging taxpayers to be on guard for scammers posing as charities in the wake of Hurricanes Milton and Helene.

The IRS warned in a statement issued on Oct. 15 that fraudsters have been exploiting the generosity of individuals looking to help disaster victims by soliciting donations through fake charitable organizations.

These scams are designed not only to steal donations but also to harvest personal and financial data from unsuspecting Americans, opening the door to identity theft and other types of fraud.

“Many people want to help survivors and their families by donating to charities,” IRS Commissioner Danny Werfel said in a statement. “Too often, criminals take advantage of would-be donors’ kindness by stealing money and personal information from well-meaning taxpayers.”

To avoid getting scammed, potential donors were reminded to be wary of high-pressure solicitations and to check that the charity is legitimate, for instance by using the Tax Exempt Organization Search (TEOS) tool. The TEOS feature lets individuals verify a charity’s tax-exempt status and ensure it is qualified to receive tax-deductible donations.

“You should never feel pressured by solicitors to immediately give to a charity,” Werfel said. “It’s important to do the research to verify if they’re authentic first.”

The IRS also advised taxpayers to avoid giving out sensitive personal information, such as Social Security numbers or credit card details, and to steer clear of charities that request payment through unconventional methods like gift cards.

“Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a scam,” the agency cautioned. “It’s safest to pay by credit card or check—and only after verifying the charity is real”

The IRS’s notice dovetails with a warning from the FBI about charity and disaster fraud, which similarly urged people to be wary of scammers exploiting tragedies to solicit donations for fake charities. The FBI additionally cautioned that, after natural disasters, fraudsters may pose as contractors or government officials, committing insurance fraud and further victimizing those with damaged homes and businesses.

The IRS’s latest warning is not the first time the agency has taken aim at fake charities exploiting taxpayer generosity. In April, the IRS included fake charities in its annual Dirty Dozen list of tax scams.

The Dirty Dozen campaign, which started in 2002, spotlights the most prevalent tax scams that put taxpayers, businesses, and tax professionals at risk. While these schemes often intensify around the tax filing season, they can occur any time of the year. In 2024, the Dirty Dozen included a range of scams, from fake charities to phishing attacks.

The IRS also recently announced relief for taxpayers affected by Hurricane Milton, offering leniency on dyed diesel fuel penalties and extending various tax deadlines for individuals and businesses across Florida.

Hurricane Milton struck Siesta Key, Florida, on Oct. 9 as a Category 3 storm, causing widespread destruction. The storm generated more than a dozen tornados, claimed at least 17 lives, and left millions without power as it swept across the state.