Taxes

Don’t Fall Victim to a Tax Scam

Tax season is looming and, unfortunately, so are the scammers. With a growing number of reports over the last several weeks, from the IRS and police departments across the country, of people falling prey to tax schemes, it’s the perfect time to share some of the most widely used tax scams. Hopefully, this insight will keep you from becoming another statistic.

Phone Scams – This scheme has been occurring with more frequency over the last few weeks. Basically, someone calls you claiming they work for the IRS. These scammers impersonate an IRS agent and typically try to scare/threaten you. They try to intimidate you with supposed penalties, being arrested or deported, etc. if you don’t pay them right now. They even may know all or part of your Social Security number. Don’t panic. The IRS won’t ever just call you out of the blue. They always initiate communication in writing, even if you owe money. They also will never ask for debit or credit card numbers over the phone or threaten you with arrest, etc. for non-payment. If you have any doubts to the authenticity of a call or any correspondence, you can contact them directly (800-829-1040) or visit their website (IRS.gov).

Phishing – This scheme happens throughout the year. This occurs when scammers try to get your personal information by fooling you with fake emails or websites. However, during tax season they lure you in by claiming they have information about your tax refund, etc. You may, for example, get an email that looks like it’s coming from the IRS, inviting you to click on a link for information concerning your tax return or the money that may be due to you. Don’t fall for it. The IRS doesn’t initiate contact via email.

Identity Theft – This one is the worst…the tax scheme of all tax schemes. You arehappily awaiting your tax return, already happily anticipating where you plan to spend it and then you find out that someone else has been using your Social Security number as well as other identifying information, has filed a return in your name and is claiming your refund. Cut this off at the pass by never giving out personal information unless you know who’s asking for it and why, shredding personal and financial documents, knowing your tax preparer (see below) and filing your return early…beating the scammers to the punch.

Tax Return Preparer Fraud – You are inundated with advertisements of people/services that want to prepare and file your return for you. Just remember, like every service and/or person, some are ethical and honest and some are not. A majority of taxpayers today use a preparer. Just do your homework…check them out…get references, etc. In addition, remember that just because someone else prepares your tax return doesn’t release you from the responsibility of its accuracy. You’re the one who is ultimately responsible for the information contained in your return. So, make sure to review it thoroughly before you file it.

False Promises – Always trust your instincts…your common sense. The old saying, “If it sounds too good to be true, it usually is,” can often be the case where refunds are concerned too. Watch for promises of big tax refunds by people who don’t know anything about you or your financial/tax circumstances.

Tax season can be hectic enough without adding undue stressors. So, eliminate the added stress by being aware of these types of scams, using your common sense, dealing with reputable, longstanding tax preparers and thoroughly reviewing your return. And last, but not least…when in doubt, contact the IRS.
Here’s to a stress-free, safe tax season!

Don’t Fall Victim to a Tax Scam

Tax season is looming and, unfortunately, so are the scammers.  With a growing number of reports over the last several weeks, from the IRS and police departments across the country, of people falling prey to tax schemes, it’s the perfect time to share some of the most widely used tax scams. Hopefully, this insight will keep you from becoming another statistic.

Phone Scams – This scheme has been occurring with more frequency over the last few weeks.  Basically, someone calls you claiming they work for the IRS. These scammers impersonate an IRS agent and typically try to scare/threaten you.  They try to intimidate you with supposed penalties, being arrested or deported, etc. if you don’t pay them right now.  They even may know all or part of your Social Security number. Don’t panic. The IRS won’t ever just call you out of the blue. They always initiate communication in writing, even if you owe money. They also will never ask for debit or credit card numbers over the phone or threaten you with arrest, etc. for non-payment. If you have any doubts to the authenticity of a call or any correspondence, you can contact them directly (800-829-1040) or visit their website (IRS.gov).

Phishing – This scheme happens throughout the year. This occurs when scammers try to get your personal information by fooling you with fake emails or websites.  However, during tax season they lure you in by claiming they have information about your tax refund, etc.  You may, for example, get an email that looks like it’s coming from the IRS, inviting you to click on a link for information concerning your tax return or the money that may be due to you. Don’t fall for it. The IRS doesn’t initiate contact via email.

Identity Theft – This one is the worst…the tax scheme of all tax schemes. You are happily awaiting your tax return, already happily anticipating where you plan to spend it and then you find out that someone else has been using your Social Security number as well as other identifying information, has filed a return in your name and is claiming your refund.  Cut this off at the pass by never giving out personal information unless you know who’s asking for it and why, shredding personal and financial documents, knowing your tax preparer (see below) and filing your return early…beating the scammers to the punch.

Tax Return Preparer Fraud – You are inundated with advertisements of people/services that want to prepare and file your return for you.  Just remember, like every service and/or person, some are ethical and honest and some are not.   A majority of taxpayers today use a preparer. Just do your homework…check them out…get references, etc.  In addition, remember that just because someone else prepares your tax return doesn’t release you from the responsibility of its accuracy. You’re the one who is ultimately responsible for the information contained in your return.  So, make sure to review it thoroughly before you file it.

False Promises – Always trust your instincts…your common sense. The old saying, “If it sounds too good to be true, it usually is,” can often be the case where refunds are concerned too. Watch for promises of big tax refunds by people who don’t know anything about you or your financial/tax circumstances.

Tax season can be hectic enough without adding undue stressors. So, eliminate the added stress by being aware of these types of scams, using your common sense, dealing with reputable, longstanding tax preparers and thoroughly reviewing your return. And last, but not least…when in doubt, contact the IRS.

Here’s to a stress-free, safe tax season!