Tax Season Scams: Tips to Protect Yourself

Fraudsters don’t take a break so that you can file your taxes. With increasingly sophisticated tactics, they target individuals and businesses, aiming to steal money, personal information, or both. Stay ahead of the game and follow the tips below to keep your information safe.

Common Income Tax Scams:

• Phishing emails and text messages: Fraudsters may try to impersonate the IRS to trick you into providing your personal information. These messages typically contain links or attachments asking for sensitive information. Do not reply to texts or emails or click on any links if you are not expecting one. Review our Protect Yourself From Phishing blog for more.
• Phone Scams (Impersonation Calls): Fraudsters may impersonate IRS agents or tax officials over the phone, claiming you owe back taxes. They often use aggressive language, threats of arrest or seizure of assets to intimidate victims.
• Fake Tax Preparation Services: Some fraudsters pose as tax preparers offering to file your taxes for a low fee. They steal your information, inflate deductions or direct refunds to their own accounts.
• Refund scams: With these scams, fraudsters file false tax returns in your name and claim your refund before you do. By the time you file your real return, the IRS may flag it as a duplicate, delaying your legitimate refund.
• Social Media scams: Fraudsters use social media to advertise scams like “stimulus payments” or “quick refunds” attracting victims to provide personal information or make upfront payments.

How to Protect Yourself:

• Know how the IRS communicates: The IRS does not initiate contact via email, text messages or social media to request personal or financial information. Most communication from the IRS is via mailed letters. If someone demands payment over the phone, hang up. Use the IRS’s official website or call their verified numbers to confirm.
• File early: Give criminals less time to steal and use your information. This will also help prevent false tax files being submitted if your identity has already been stolen.
• Use a secure network: When filing your taxes online make sure you are using a secure network/wi-fi. This could be your password-protected home network. Secure your tax preparation accounts using two-factor authentication.
• Beware strange tax documents: If you receive an unfamiliar tax document, or one that you did not request, it could be a sign a fraudster is trying to use your information to obtain tax forms. Contact the IRS to verify the form at 800-908-4490.
• Shred documents: After you have filed, shred any sensitive documents that you no longer need. If you still need them, store them in a secure place.
• Monitor your tax account: Create an account on the IRS website to monitor your tax fillings and any refunds. This will help you to identify any unauthorized activity quickly.

Scammers prey on fear, urgency, and confusion. Staying informed and cautious can help prevent you from becoming a victim.

Suspicious scams can be reported here:

• Internal Revenue Service (IRS) – www.irs.gov
• U.S. Treasury Inspector General for Tax Administration (TIGTA) - www.tigta.gov
• Federal Trade Commission (FTC) – www.reportfraud.ftc.gov