Scammers are getting sneakier with their tactics. It may be easier than you think to fall victim to a phishing scheme or put your sensitive information into the wrong hands, especially during tax season.
Think it won’t happen to you? Don’t be so sure.
You’re likely already a target, but you don’t have to be the next victim. Read on for advice from your local tax advisors in Charlotte, NC. You’ll learn how to spot tax scams and avoid the financial turmoil they cause.
It could be a piece of mail with an official-looking government logo on it warning you about a tax mistake. Or a particularly persuasive phone call urging you to act immediately to avoid fines or jail time.
Someone may reach out to you on your social media account offering to pass along a little known tax secret—for a price.
Perhaps a “tax preparer” offers you a deal that sounds too good to be true—higher, faster refunds. Afterward, they take your refund as payment for their “services.”
Many of these scams sound and look legitimate. They swindle unsuspecting taxpayers from their hard-earned money every year.
Here are some tell-tale signs of a scam and ways to double-check any false information someone is trying to feed you.
Most IRS scams are phishing scams. The thief contacts you by email, phone, social media message, or even in person, convincing you to give up personal information.
For example, you may get an official-looking email from the IRS asking you to click on a link to finish filling out incomplete information, correct a mistake, or avoid punishment for underpayment.
The best thing to do: NEVER click a link or take what another person is saying as truth. Write down information and check directly with the source later (more on that below).
Imposters claim to be with the IRS or a government agency when they aren’t. As with phishing scams, they hope to gain your trust and access to your personal information. Write down information, but NEVER feel you must act until you’ve double-checked directly with the source.
Fraudulent communications typically include a threat if you don’t act immediately—jail time, losing your home, etc. The IRS and other government agencies NEVER threaten you for taxes due.
If something sounds too good to be true, it usually is. Don’t believe anyone promising you more money, even if they're attempting to get you an unclaimed, more substantial, or faster refund.
Often, scammers approach you with these claims to gain access to your bank account. Sometimes, they’ll have you set up a separate account to receive your refund but drain that account before you can collect it.
Fraudulent mail can often contain spelling or grammatical errors. For example, your prefix might be Ms., but it says Mr. in the address. Wording might sound unprofessional or incorrect. Links end in “.org” instead of “.gov,” or you’re given a QR code.
You don’t have to take a piece of mail, an email, an unsolicited advertisement, a caller, or an in-person visitor at face value. You can pause any conversation and research where you stand with the IRS yourself. Here are some things NC tax advisors say you can do to protect your money and identity.
The IRS will always attempt to contact you by mail first. They won’t contact you by phone or in person until they’ve given you several opportunities to communicate with them through mail. They’ll never send you a text or social media message. They rarely email.
Also, the IRS will never use intimidating language. They won’t threaten they’ll put you in jail tomorrow for not righting a wrong today. No one will rush you into anything.
Government websites end in “.gov.” The IRS would never give you a QR code or send you a link with “.org.”
No legitimate IRS agent accepts payment to help you out of your situation.
Research everything, even form numbers on the IRS website. One recent scam involved a “Form 4022” to comply with the new Beneficial Ownership Information reporting requirements for business owners. The filer fills in personal information and returns it to the sender. However, the form is fake and goes to scammers. There is no Form 4022 on the IRS.gov website.
You can deal directly with the IRS yourself. You don’t need a go-between. IRS.gov has tools on its website to help you find and file forms, resolve an issue, or report a tax scam.
You can check information on the IRS website against information anyone else has given. Let’s say you get a form in the mail to fill out. Go to the IRS website to see if that form is legitimate.
Ensure your tax preparer has a Preparer Tax Identification Number (PTIN). They aren’t authorized to prepare and charge fees for tax returns without one.
The IRS website can help you find your tax preparer’s PTIN in their online directory. Also, check with the Better Business Bureau to discover if anyone has filed complaints against your preparer.
You don’t need a tax preparer if you make $73,000 or less yearly. You can use free IRS tax software at www.irs.gov/efile.
Your caller ID means nothing anymore, as scammers spoof professional numbers. Always check with IRS.gov to determine what you owe and what your refund should be.
The IRS produces an annual “Dirty Dozen” list of the worst tax scams from the prior year. Check out their 2023 Dirty Dozen to avoid publicized tax scams.
Accountants work hard to learn the latest information to help safeguard your finances. Use this advice to keep your personal information, money, and identity confidential during tax season.