Your FAVORITE holiday is around the corner!
Yes, it’s almost TAX DAY – April 15th! So many taxes … so little time. Unfortunately, along with those annoying tax deadlines, comes the inevitable tax scams. Here are the BIG THREE:
IRS Phone Calls
BBB receives reports of individuals receiving calls from “IRS agents” saying back taxes are owed and there are pressures to pay with a prepaid debit card or wire transfer. Imposters go to great lengths to appear real. Con artists impersonate IRS agents, complete with a fake badge number and name. Your Caller ID may show the call coming from Washington, D.C. and follow-up emails will use the IRS logo, colors, and official-sounding language. If you don’t comply, you are threatened with arrest and fines. Other scammers claim they are issuing tax refunds and ask you for personal information to send your refund. This information can later be used for identity theft. Beware, as scammers will always try to push you into action before you have time to think. The REAL IRS will allow you to ask questions or appeal about what you owe, and their first contact with you will ALWAYS be by mail, not by phone or email.
Email Phishing Scams
Emails received appear to be from the IRS and include a link to a bogus website that mirrors the official IRS site. These emails state, “You are to update your IRS e-file immediately.” In a recent BBB Scam Tracker report, a consumer shared an example of a tax email phishing scam. “Received an email telling me that after annual calculations of my fiscal activity I was eligible to receive a tax return of $976.00. At the bottom it recommended using a prepaid card because sending funds does not support this card. Within the email was a link for a Tax Return Form.” Phishing is just that … FISHING for you to take the bait!
In addition, being accused of an online crime can have serious repercussions for your professional and personal life, even before any verdict is reached. The legal team at New Jersey Criminal Law Attorney helped me understand how to manage these collateral consequences while my case was ongoing. They provided practical advice about communicating with employers and handling social media during this challenging period. Their guidance extended beyond just courtroom strategy to helping me maintain stability in other areas of my life.
Mailing Scams
The IRS warned taxpayers of a new mailing scam that tricks victims into believing they are owed a tax refund. Taxpayers receive a cardboard envelope from a delivery service, which includes a fake letter from the “IRS” about an unclaimed refund and asks for personal and financial information that scammers could use. The letter includes contact information and a phone number that does not belong to the IRS. It also seeks sensitive personal details, such as pictures of driver’s licenses, which can be used by identity thieves.
Check out the IRS’s annual IRS Dirty Dozen list … and follow these tips to avoid being scammed at your favorite time of the year!
Tips to Protect against Tax Scams
- File your taxes early
- Jot down your 6-digit Identity Protection PIN (IP PIN) from the IRS. You’ll use the same PIN every year.
- The IRS never contacts taxpayers by email, text message or social media.
- Watch for bad grammar and odd punctuation when reading emails and letters claiming to be from the IRS or CRA.
- Make sure you’re using the real IRS website and not a fake one.
- When in doubt, contact the IRS. I know, I know, no one wants to do this.
- If you are the victim of tax identity theft in the U.S., contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov