How to Avoid IRS Scams During Tax Season

Tax season can be stressful, but it becomes even more challenging when scammers try to take advantage of unsuspecting people.

Each year, tax-related scams cost individuals thousands of dollars, and no one wants to become a victim. With the rise of phishing attempts, fake IRS calls and identity theft, it is crucial to know how to protect yourself from these schemes. Here is a simple guide to help you avoid IRS scams during tax season.

Understand How the IRS Communicates

One of the most important things to know is how the IRS communicates with taxpayers. The IRS will never:

• Call you unexpectedly to demand immediate payment.
• Threaten to arrest you over unpaid taxes.
• Request sensitive information, like your Social Security number, via email or text.
• Ask for payment using gift cards or prepaid debit cards.

If you receive a call, text, or email like this, it is almost certainly a scam.

The IRS usually contacts people through official letters via mail, and it gives taxpayers the opportunity to appeal or dispute any amounts owed.

Beware of Phishing Emails

Phishing emails are one of the most common forms of IRS-related scams.

These emails may appear to come from the IRS, but they contain fake links or attachments designed to steal your personal information. Some may even look legitimate, with IRS logos or official-sounding language.

To protect yourself:

• Never click on links or download attachments from unknown sources.
• Verify the email sender’s address. Official IRS emails are rare and typically come from a .gov domain.
• Report suspicious emails to the IRS at phishing@irs.gov.

Watch Out for Fake IRS Websites

Scammers often create fake websites that look like the IRS’s official website. These websites are designed to collect your personal and financial information.

Make sure you only visit the IRS’s official website: irs.gov. Before entering any sensitive information, double-check the URL to ensure it is correct.

Be Cautious of Tax Preparer Fraud

While most tax preparers are trustworthy, there are some who may try to take advantage of you. Some scammers may promise large refunds, ask for payment upfront or file false tax returns on your behalf without your knowledge.

To avoid tax preparer fraud:

• Choose a tax preparer carefully. Look for a licensed professional, such as a CPA or an enrolled agent.
• Review your tax return before signing. Never sign a blank tax form.
• Make sure your refund is sent directly to you, not to your preparer’s bank account.

Guard Your Personal Information

Identity theft is another significant risk during tax season. Scammers may try to steal your Social Security number (SSN) or other personal information to file a fraudulent tax return in your name and collect your refund.

To protect yourself:

• Keep your SSN secure and only share it with trusted entities.
• Use strong passwords for your online tax accounts and financial services.
• Shred sensitive documents instead of just throwing them away.
• File your taxes early. If you file before a scammer can, they will not be able to submit a fake return using your information.

Stay Informed About Common Scams

Scammers are constantly changing their tactics, so it is essential to stay up to date on the latest schemes. The IRS publishes information on common scams, which you can find on their website under the "Dirty Dozen" scams list.

Some examples include:

• Fake tax debt relief companies that promise to lower your tax bill for a fee.
• Social media scams where criminals use personal information found on social platforms to impersonate you.
• Evolving phone scams where scammers claim you're eligible for a larger refund and ask for your banking details.

What to Do If You Are Targeted

If you suspect you've been targeted by a scam, do not panic. Here is what to do:

• Hang up immediately if you receive a suspicious call.
• Do not respond to or click on links in suspicious emails or texts.
• Report the incident to the IRS. You can call the IRS at 1-800-366-4484 to report phone scams or email phishing attempts.
• If you believe your identity has been stolen, contact the IRS’s Identity Theft Hotline at 1-800-908-4490.

Tax season is stressful enough without the threat of scammers. By staying informed and knowing the signs of common IRS scams, you can protect yourself from falling victim to these schemes. Always remember to safeguard your personal information, double-check communications, and rely on trusted sources for filing your taxes. The IRS will never ask for immediate payments or personal information via phone, email, or text, so always be cautious.

Stay alert, stay informed, and keep your tax season scam-free!