Beware of Tax Season Scams: Protect Yourself and Your Finances

As tax season approaches, it's important to stay vigilant against scams that target unsuspecting taxpayers. Scammers are constantly evolving their tactics, and being aware of the most common schemes can help you protect your personal information and finances. 

Here are some of the top scams to watch out for this tax season:

Phishing Scams

Phishing scams involve fraudulent emails or text messages that appear to be from the IRS or other official entities. These messages often 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 information. Always verify any communication by contacting the IRS directly through their official website or phone number.

Phone Scams

Scammers may impersonate IRS agents over the phone, demanding immediate payment or threatening legal action. They often use caller ID spoofing to appear legitimate, therefore the caller ID may show “IRS” If you receive such a call, request a reference number and hang up. Verify the caller's claims by contacting the IRS directly.

Charity Scams

Fake charities solicit donations under the guise of being tax deductible. Always verify organizations through the IRS Tax Exempt Organization Search.

Refund and Identity Theft Scams

Some scammers file fake tax returns using stolen personal information to claim refunds. Victims typically discover the scam when the IRS flags their legitimate return as a duplicate. Filing early can help minimize the window of opportunity for scammers. Monitor your IRS online tax account for unauthorized activity and report any suspicious behavior immediately.

Fake Tax Preparers

Be cautious of fraudulent tax preparers who offer low-cost services but steal your sensitive information or manipulate your returns for personal gain. Always verify that tax preparers are registered with the IRS and have a valid Preparer Tax Identification Number.

Cryptocurrency Scams

Scammers demand tax payments in cryptocurrency or offer fake investment opportunities. The IRS does NOT accept cryptocurrency payments.

Social Media Scams

Scammers use social media platforms to promote fake stimulus payments or quick refund offers. These schemes often lure victims into providing personal information or making upfront payments. Be wary of unsolicited offers and always verify the legitimacy of any claims.

Tips for Staying Safe

• File Early: This helps prevent identity theft and fraudulent filings.
• Use Secure Networks: When filing online, ensure your internet connection is secure.
• Verify Communications: Always verify any communication claiming to be from the IRS by contacting them directly.
• Monitor Your Accounts: Regularly check your IRS online account for any unauthorized activity. Look for discrepancies and set up alerts for new activity.

An IRS online account allows individuals to securely access their federal tax information, including viewing balances or digital copies of certain notices from IRS, accessing tax records, monitoring payments, view your audit status, and managing your profile.

By staying informed and cautious, you can protect yourself from these common tax season scams. If you suspect you've been targeted by a scam, report it to the IRS immediately.