Beware of Tax Scams: How to Protect Yourself During Filing Season
Tax filing season is in full swing, and scammers are on the prowl, targeting unsuspecting taxpayers with various scams to obtain money and personal information. The International Association of Better Business Bureaus warns that tax scams often start with a phone call and typically fall into two categories. In one scenario, scammers pose as IRS agents, claiming the victim owes back taxes and pressuring them to pay with prepaid debit cards or wire transfers under the threat of arrest and fines. The other common tactic involves scammers pretending to issue tax refunds and requesting personal information to send the refund, which could be used for identity theft.
These tax scammers employ various tactics to appear legitimate, such as providing fake badge numbers or names and using caller IDs that show Washington, D.C., numbers or official-sounding robocall recordings. They may also send follow-up emails with IRS logos and colors to further deceive victims. Scammers often try to rush victims into immediate action without giving them time to question or process the information, demanding payment through non-traditional methods like wire transfers or prepaid debit cards, which are harder to trace or reverse.
The real IRS never demands immediate payment, specifies a particular payment method, or asks for credit or debit card information over the phone. Taxpayers can ask questions or appeal back taxes owed to the IRS, which always initiates contact through mail, not phone calls, texts, emails, or social media. The IRS has also cautioned taxpayers about a mailing scam where victims receive a fake letter in a cardboard envelope claiming to be from the IRS regarding an unclaimed refund, requesting personal and financial information.
To avoid falling victim to tax scams, taxpayers should contact the IRS directly if they are unsure about the legitimacy of phone calls or other outreach claiming to be from the agency. Filing taxes early can also help prevent identity theft, as scammers may attempt to use your information to file fraudulent returns. Stay vigilant and report any suspicious activity to the IRS to protect yourself from falling prey to tax scams.