Tax season is prime time for scammers and fraudsters looking to take advantage of stressed-out filers. As you prepare your taxes, stay vigilant against tax scams to protect your personal information and money.
Common Tax Scams to Watch Out For
Phishing Emails and Links
Cybercriminals send out fake emails and links pretending to be from the IRS, tax software companies, or other legitimate sources. Their goal is to trick you into entering personal information or downloading malware.
I carefully check the sender’s email address and look for typos or other red flags before clicking on any links or attachments. Legitimate emails will come from an @irs.gov address. If something seems suspicious, I delete the email instead of engaging.
Aggressive or Threatening Phone Calls
Scammers may call claiming you owe money and demanding immediate payment via gift card, cryptocurrency, wire transfer or other unusual methods. The IRS will never call with threats of lawsuits or arrest.
If I receive a call like this, I immediately hang up. I do not engage with these scam callers at all, as that confirms they reached a real person and may lead to more calls.
Fake Tax Preparers
Dishonest preparers may promise unrealistically large refunds by fudging numbers on your return. Some may even steal your personal information for identity theft.
I check credentials and reviews before hiring any tax preparer. I avoid any preparer who charges a percentage of the refund or makes big promises without seeing all the documentation.
Ransomware and Data Theft
Cybercriminals may try to infect your devices with malware to steal tax documents or data. Or, they may pose as the IRS and contact you claiming a problem was detected with your return, asking you to verify personal information.
I avoid clicking suspicious links and never share sensitive data like Social Security numbers over email or unverified websites. Keeping devices and software up to date also helps prevent malware infections.
How to Protect Yourself from Tax Scams
Here are key tips to avoid falling victim to tax scams:
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File taxes early. Scammers often target late filers in a rush. Submit your return as soon as possible.
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Use a secure internet connection if filing electronically or looking up account info online. Avoid public WiFi.
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Check IRS.gov for latest scam alerts. Bookmark the real IRS site and go there directly.
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Use a credit card when paying filing fees to have added fraud protection.
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Keep all records related to your return on hand in case questions come up.
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Never share personal info like social security or bank account numbers over the phone, email or texts.
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Review all communications carefully, watching for typos, threats, or abnormal urgency as red flags.
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Trust your gut. If a call, email etc. seems suspicious, disengage and confirm it is legitimate before providing any information.
What to Do if You Fall Victim to a Tax Scam
If you shared personal information or lost money in a tax scam, take these steps right away:
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Contact banks and credit card companies to warn of potential identity theft and monitor for fraud.
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Report the scam to the IRS at irs.gov/privacy-disclosure/report-phishing. Provide details on how you were targeted.
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Check credit reports and consider freezing credit to prevent scammers from opening new fraudulent accounts.
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Reset all account passwords that may have been compromised. Make the new passwords strong and unique.
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File an identity theft report with the FTC at IdentityTheft.gov. This helps you recover from identity theft or fraudulent tax returns filed in your name.
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Be vigilant about checking credit and account statements moving forward to detect any further fraud.
Tax scams and identity theft can have serious financial and legal consequences. But following security best practices, acting quickly after a scam, and monitoring accounts and credit can help limit the damage. With caution and awareness, you can spot scammer tactics before they succeed.
