The IRS recently issued its annual list of tax scams. The list highlights various scams that taxpayers may encounter, many of which occur during tax filing season. Here are some of the scams that are highlighted on the list.
Phishing
Phishing scams usually involve unsolicited emails or fake websites that pose as legitimate IRS sites to convince you to provide personal or financial information. Once scam artists obtain this information, they use it to commit identity or financial theft. The IRS will never initiate contact with you by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media.
Phone scams
Phone scams typically involve a phone call from someone claiming you owe money to the IRS or that you’re entitled to a large refund. The calls may show up as coming from the IRS on your Caller ID, be accompanied by fake emails that appear to be from the IRS, or involve follow-up calls from individuals saying they are from law enforcement. Sometimes these callers may even threaten you with arrest, license revocation, or deportation.
Identity theft
Tax-related identity theft occurs when someone uses your Social Security number to claim a fraudulent tax refund. You may not even realize you’ve been the victim of identity theft until you file your tax return and discover that a return has already been filed using your Social Security number. Or the IRS may send you a letter indicating it has identified a suspicious return using your Social Security number.
Return Preparer Fraud
Some scammers pose as legitimate tax preparers to commit refund fraud or identity theft. Always choose a tax preparer carefully. Remember, you are legally responsible for your tax return, even if someone else prepares it.
Inflated Refund Claims
Be cautious of anyone promising unreasonably large refunds. Some scam artists may ask you to sign a blank return and promise a big refund without reviewing your tax records. Others charge fees as a percentage of your refund.
Fake Charities
Some groups pose as charitable organizations to solicit donations. Watch out for charities with names similar to well-known organizations. Before donating, check the charity’s legitimacy using tools on the IRS website.
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