New York Attorney General Letitia James issued a consumer alert Tuesday, urging New Yorkers to avoid tax preparation scams and to check if they qualify for the free Direct File service ahead of the April 15 tax deadline.
The Direct File program allows eligible taxpayers to file federal and state tax returns online at no cost, potentially saving the average New York taxpayer about $260 in tax preparation fees, according to James’ office.
“While tax season can be stressful, New Yorkers deserve peace of mind knowing that they’ll be protected from scams and won’t have to pay hundreds of dollars just to file their taxes,” James said. “The Direct File program is a safe and easy way to file taxes for free and save hundreds of dollars. I encourage everyone to be on the lookout for fraudsters who try to take advantage of tax season to cheat New Yorkers, and report any suspected frauds to my office.”
James warned taxpayers about common scams, including fraudsters who claim individuals owe past tax debts and demand payment through prepaid credit cards or gift cards—methods not used by legitimate government agencies. Other deceptive tactics include scammers falsely claiming a taxpayer’s refund was issued in error and must be returned, fraudulent offers of free tax preparation services that later come with hidden fees, and tax preparers who promise fast refunds but impose high interest rates and additional costs.
New Yorkers were also cautioned against unsolicited calls, emails or text messages requesting personal or financial information.
The New York Tax Department estimates that 3.4 million New Yorkers will be eligible to use Direct File this year. Taxpayers with 2024 wages up to $200,000—or $250,000 for joint filers—may qualify.
To determine eligibility and access the service, taxpayers should:
- Check if they qualify for New York State Direct File for their state tax return.
- Verify eligibility for IRS Direct File for their federal tax return.
- If eligible, start their federal return on the IRS Direct File website. Once completed, users will be directed to New York State Direct File to finalize their state taxes.
More information is available on the New York State Tax Department’s website.
James also provided tips to help taxpayers protect themselves, including verifying the credentials of tax preparers, ensuring tax forms are properly signed, and reviewing any fees or interest charges before agreeing to services.
New Yorkers who suspect they have been targeted by tax fraud are encouraged to report it to the Office of the Attorney General online or by calling 800-771-7755.
