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FDIC-Insured – Backed by the full faith and credit of the U.S. Government
Tax season is a prime time for scammers looking to steal personal and financial information. From fake IRS calls to fraudulent tax preparers, these scams can put your identity and your money at risk.
This month, we’re highlighting three common tax scams and how you can protect yourself. Stay informed and safeguard your finances this tax season!
Don’t let your hard-earned refund fall into the wrong hands. Tax refund scams involve fraudsters misleading taxpayers about refunds, credits, or tax payments. They often pressure individuals to divulge personal, financial, or employment information, or to send money immediately.
These scammers may impersonate IRS officials through phone calls, emails, or letters, claiming there is an issue with your tax return or offering unexpected refunds. It’s crucial to remember that the IRS will never initiate contact to request sensitive information or demand immediate payment without prior notice.
In IRS impersonation scams, criminals pose as IRS agents, contacting taxpayers via phone, email, or mail. They may threaten arrest, deportation, or license revocation if immediate payment isn’t made. These IRS impersonators often request payment through unconventional methods like gift cards, wire transfers, or cryptocurrency.
The IRS typically communicates through official letters and will not demand immediate payment without offering the opportunity to question or appeal the amount owed.
Tax preparer fraud occurs when dishonest preparers manipulate tax returns to claim inflated refunds or credits on behalf of their clients. They might fabricate expenses, deductions, or exemptions, leading to fraudulent returns. Taxpayers remain legally responsible for the accuracy of their tax returns, even if prepared by someone else.
To protect yourself, choose a reputable tax preparer, review your return thoroughly before submission, and ensure the preparer signs the return and includes their Preparer Tax Identification Number (PTIN).
Scammers are continuously looking for unique ways to trick you and steal your personal and financial information — don’t fall for it. If something seems suspicious, it probably is. Verify directly with the IRS or a trusted tax professional before taking any immediate action.
Don’t Forget:
The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail.
Source of this month’s scam information:
https://www.irs.gov/help/tax-scams/recognize-tax-scams-and-fraud
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