Getting your tax information sorted and filed conjures up enough stress in itself, and when you add the potential of being scammed by opportunistic thieves, tax season becomes even more daunting. Awareness is key; take a look at the most common scams thieves use during the tax season and protect yourself and your family from the efforts of opportunistic con artists.
1. Identity Theft
Let’s start with the largest threat—identity theft. You might hate filing your taxes, but a scammer would love to get ahold of your information and file them for you, then reap the rewards of your tax return. By filing early, you can better avoid this issue. Within this scam, con artists will steal your personal information, like your social security number, then file a tax return under your name. Most people affected by this scam don’t realize what has happened until after they actually file and the IRS lets them know one has already been filed. In 2013 alone, the IRS claims to have thwarted 14.6 million attempts at fraudulent returns, resulting in an excess of $15 billion in refunds. Protect your social security number, and don’t give out any sensitive information unless you’re using a professional tax preparer or registered tax filing system.
2. A Shady Email
The IRS won’t email you, let’s just get that out there right away. Very few cases see IRS agents sending important information to your personal email account, so any message received claiming to be from the government agency should be regarded with suspicion. Recent scams that capitalize on email captures have asked taxpayers to update sensitive information on their tax portal—a fake but convincing feature on a website of the scammer’s making. Always make sure any website regarding IRS dealings begins with www.IRS.gov. Scammers may use variations in order to make their site seem more legitimate, so tread carefully.
3. A Call from the IRS
An unexpected call from the IRS can have you shaking in your boots, but the government agency warns that these calls can’t always be taken at their word. In recent years, the IRS has noted an increasing trend of scam phone calls looking to swindle taxpayers out of their sensitive information. These scammers can convincingly pose as IRS agents; some skilled scammers have been able to hack the phone number so that it looks as if the call is coming from a registered IRS number. These so-called agents will ask for multitudes of sensitive information—if an individual isn’t easy to sway, they may be slapped with threats of audits, tax levies, and even jail time. These scams are usually highly sophisticated, and it can be tough to determine whether the caller is a scam artist or actual government agent. Should this situation happen to you, call the IRS and get confirmation of the agent who has been calling you.
4. Miracle Return Offers
If it sounds too good to be true, it probably is—especially when it comes to lofty promises of inflated tax returns. If someone offers to help you file in order to gain you a higher return, and they don’t ask to see your records, run away as quickly as possible. Never sign a blank tax form—this is a clear indication the individual in question is attempting to scam you. Use a certified and trusted tax filing service or the help of a professional from a company like CTax to ensure your information stays safe and you do everything by the book with the IRS—no one wants to land in hot water with the government.
5. A Charity Scam
It’s a sad fact, but those looking for donations to nonprofit organizations and charities don’t always have well-meaning intentions. If you’re approached by a nonprofit or similar charitable organization, especially during tax season, make sure you do your research. These scammers are cunning; the websites may look completely legitimate. For an easy safeguard against these types of scams, always be sure the charity is listed as a 501(c)(3) before donating. There are many scammers prepared to target hardworking taxpayers, and if you want to keep your personal information and assets protected, it’s essential to remain aware of the potential for scams.
If you need help filing your taxes before the April 15th deadline, let TalkLocal help you find a local tax professional.
