By Jill Colvin
DNAinfo Reporter/Producer
CITY HALL — City officials warned New Yorkers Wednesday to watch out for shady income tax preparers looking to scam them out of their hard-earned cash just a few weeks ahead of the filing deadline.
A recent crackdown by the Department of Consumer Affairs found that 35 percent of 1,200 suspicious tax preparers targeted for investigation were guilty of one or more consumer protection violation. Rates were even worse in low-income neighborhoods, Commissioner Jonathan Mintz said.
"Stay away from tax preparers who don't play by the rules," Mayor Michael Bloomberg told reporters at a press conference in the Bronx. "Your own vigilance is the best way to protect your rights and your wallet," he said.
The DCA chose to investigate tax preparers that had previous violations, as well as those that serve a large population of immigrants and/or issued a high number of "Refund Anticipation Loans," which promise "instant" or "rapid" tax refunds for filers.
While the loans are legal, the mayor warned that they can carry annual interest rates of up to 500 percent a year — even when tax-payers don't end up with a refund.
City Councilman Daniel Garodnick described undisclosed refund anticipation loans as "some of the most shameless, predatory and deceptive products that are out there."
The deadline for filing city, state and federal income tax returns is April 18.
New Yorkers looking for help filing their taxes can check here for city tips. For those looking for help in person, a list of free tax preparation sites in your neighborhood is available here.
Residents who earn less than $57,000 a year can file your taxes for free online by clicking here. If you earn less than $41,000 a year with children or $31,000 without, you can also have your taxes done by H&R Block for $29 with a city coupon available here.
