It’s very important to avoid tax scams during tax season in order to protect yourself from financial loss and identity theft. Tax scams happen all year round, but they’re especially rampant during tax season. These scams typically involve criminals trying to obtain personal information that can be used to steal your identity or your money. Tax scams can take many forms. In this article we’re sharing three of the most common ones, as well as what to do if you are targeted.
Tax Scam Phone Calls
Tax scammers may use phone calls to try to obtain your personal information by pretending to be from the IRS or other government agencies. These phone calls can be very convincing, as the scammers may have access to some personal information about you already, such as your name or address.
During the call, the scammer may tell you that they need additional information from you or that you owe back taxes. They may then ask you to provide personal information, such as your bank account details or credit card information, in order to pay the tax debt. If you provide this information, the scammer can use it to steal your identity and/or your money.
Phishing Emails
Phishing is a type of online scam that involves sending fake emails or setting up fake websites that look like they are from a legitimate organization, such as the Internal Revenue Service. The goal of these scams is to trick you into giving out your personal information.
During tax season, scammers may send phishing emails pretending to be from the IRS or a tax preparation service. These emails may contain links to fake websites that look like legitimate tax preparation sites or may ask you to download attachments that contain malware. If you click on a link or download an attachment from a phishing email, you may inadvertently reveal your personal information or infect your computer with malware.
Tax Credit Scams
Tax credit scams are a type of scam in which criminals try to obtain your personal information by claiming that you are eligible for a tax credit or refund. They will say that they are from the IRS and ask for your social security number or bank account information in order to process the credit or refund that you are owed.
How To Avoid Tax Scams
To protect yourself from tax scams, it is important to first be aware of the common tactics that scammers use. You also should never give out your personal information such as your Social Security number, bank account details, or credit card information, to someone claiming to be from the IRS or any other government agency over the phone or email. Be on the lookout for red flags, such as requests for personal information or threats of legal action.
The IRS will never initiate contact with you by phone or email. They will never call or email threatening you with arrest or demand that you pay a tax bill immediately. The IRS communicates with taxpayers via U.S. mail. They will send you a letter or notice if they need to get in touch with you about your taxes or if they need additional information from you.
It is also a good idea to use reputable tax preparation software or services and to double-check any information that you provide on your tax return to ensure that it is accurate. By taking these precautions, you can help to protect yourself and your finances during tax season.
How To Report Tax Scams
If you receive a phone call or email from someone claiming to be from the IRS, hang up and do not click on any links or download any attachments from the email. You can report these scams to the IRS directly by calling 1-800-366-4484 or forwarding the email to phishing@irs.gov.
And if you have questions about your current tax situation or need assistance with tax preparation or filing for this year, reach out to us here at Minton CPA & Associates. We provide tax services to both individuals and businesses, and can ensure that your tax return is filed accurately and on time. Contact us today by calling 757-546-2870.