During tax season, scammers are generally very active. Criminals have upped the level of their game with the use of fake emails, calls, or websites to extract money from people or to steal their personal identities. You could also be one of the unsuspecting victims of these scams and end up losing hundreds or thousands of dollars. Here are some recommendations for avoiding scams during the tax season and protecting yourself from fraud.
How do scammers target people during tax season?
Scammers use different tactics to trick you into giving up your personal and financial information. Some of the most common methods include:
- Fake IRS messages: Scammers send emails, text messages, or even call you pretending to be from the IRS. They may say you owe taxes or that you are due for a refund to pressure you into acting quickly.
- Phishing emails from tax services: You may receive an email that looks like it is from a tax preparation company like TurboTax or H&R Block. These emails contain links that take you to fake websites designed to steal your login details and banking information.
- Threats of legal action: Some scammers may call and claim that you will be arrested if you do not pay an outstanding tax bill immediately. The IRS will never threaten you in this way.
- Fake tax refund offers: Scammers send emails or messages saying you are eligible for a refund, but you need to provide your Social Security number or banking information to receive it. These are designed to steal your identity.
How can you tell if an IRS message is fake?
If you receive a message from someone claiming to be from the IRS, here is how to know if it is a scam:
- The IRS never contacts people by text message, email, or social media about taxes.
- The IRS does not demand immediate payment over the phone. They always send a written notice first.
- The IRS does not request payment in gift cards, cryptocurrency, or wire transfers.
- Scammers may use fake caller IDs to make it seem like they are calling from a real IRS office, but you can always verify by contacting the IRS directly.
What should you do if you receive a suspicious tax-related message?
If you get a phone call, text, or email that seems suspicious, follow these steps:
- Do not respond to any messages claiming to be from the IRS. Instead, go to the official IRS website to check your tax status.
- Do not click on links in emails or text messages. If you need to access your tax account, type the web address manually.
- Report the scam to the IRS by forwarding suspicious emails to [email protected] or calling 800-366-4484.
- Block and delete scam calls and messages to avoid further contact.
How can you protect yourself from tax scams?
To keep your information safe during tax season, take these precautions:
- File your taxes early to prevent scammers from filing a fraudulent return in your name.
- Use strong passwords for your tax accounts and enable two-factor authentication whenever possible.
- Only use trusted tax professionals or reputable online tax preparation services.
- Shred old tax documents before disposing of them to prevent identity theft.
- Monitor your credit reports for any suspicious activity related to your Social Security number.
What should you do if you become a victim of a tax scam?
If you suspect you have been scammed, take action immediately.
- Contact your bank to report any unauthorized transactions.
- Place a fraud alert on your credit report with the three major credit bureaus: Experian, Equifax, and TransUnion.
- Report identity theft to the IRS by filling out Form 14039, Identity Theft Affidavit.
- File a complaint with the Federal Trade Commission (FTC) at IdentityTheft.gov.
