As tax season is underway, it’s crucial to stay vigilant against scams that can compromise your personal and financial information. Scammers are becoming increasingly sophisticated, using various tactics to deceive taxpayers. Here’s how you can protect yourself and your hard-earned money.
Common Tax Season Scams
- Phishing Scams Scammers often send emails or texts impersonating the IRS or other official entities. These messages may contain links or attachments that prompt you to provide sensitive information. Remember, the IRS will never contact you via email, text, or social media to request personal or financial details
- Phone Scams Fraudsters may call, pretending to be IRS agents, demanding immediate payment, or threatening legal action. They might even spoof caller IDs to appear legitimate. If you receive such a call, hang up and contact the IRS directly to verify the claims
- Refund and Identity Theft Scams Some scammers file fake tax returns using stolen personal information to claim refunds. Victims usually discover the scam when the IRS flags their legitimate return as a duplicate. Filing your taxes early can help minimize the risk of identity theft
- Fake Tax Preparers Be cautious of tax preparers who offer low-cost services but steal your sensitive information or manipulate your returns for personal gain. Always verify that your tax preparer is registered with the IRS before sharing any information.
How to Spot a Scam
- Unsolicited Communications: Be wary of unexpected emails, texts, or phone calls claiming to be from the IRS. The IRS will not initiate contact this way.
- Urgency and Threats: Scammers often create a sense of urgency, pressuring you to act quickly without verifying the authenticity of the request.
- Suspicious Links and Attachments: Avoid clicking links or downloading attachments from unknown sources. Always verify the sender’s identity.
- Requests for Personal Information: Legitimate organizations will not ask for sensitive information like Social Security numbers or bank details via email or text.
Tips to Avoid Scams
- File Early: The sooner you file your taxes, the less time scammers have to file a fraudulent return in your name
- Use Secure Networks: When filing online, ensure your internet connection is secure. Avoid using public Wi-Fi for sensitive transactions
- Verify Tax Preparers: Check the credentials of your tax preparer and ensure they are registered with the IRS.
Check their PTIN against the IRS’s online Preparer database. This listing includes only preparers with professional credentials (such as CPAs) who’ve completed continuing education classes on the latest tax laws and codes. You can also search this database to find professional tax preparers in your area.
- Monitor Your Tax Account: Regularly check your tax account for any unauthorized activity. The IRS provides tools to help you monitor your account.
What to Do If You Suspect a Scam
If you believe a tax scam has targeted you, report it immediately. Contact the IRS directly through their official website or phone number. Additionally, you can file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint
By staying informed and cautious, you can protect yourself from tax season scams and ensure your financial security.