Watch Out for Tax Return Scams  

Written by:

Baylor Cox

Reviewed by:

• Erin Frizell

  

As tax season rolls around, it’s a busy time for everyone—both individuals and businesses are filing their tax returns. Unfortunately, it is also when tax return scams pop up, preying on the confusion and urgency many feel this time of year. These scams aim to steal personal information or money from taxpayers. To help keep yourself safe, it’s important to understand what tax return scams look like and how you can avoid them.  

Tax return scams often involve scammers posing as the Internal Revenue Service (IRS). They might reach out to you via phone, email, or social media, claiming that you owe back taxes, have missed deadlines, or are eligible for a refund. The specific scams used can vary widely, from phishing emails that lead you to fake websites to aggressive phone calls demanding immediate payment for debts.  

What Tax Return Scams Look Like  

One common trick scammers use is impersonation. Victims might get a phone call from someone claiming to be an IRS agent, threatening legal action or arrest if they don’t pay up immediately. These scammers often use fake names and employee identification to sound convincing, creating a sense of urgency that can pressure people into revealing sensitive information or making hurried payments.  

Another popular scam is the refund scam. Here, individuals are tricked into providing their personal information to claim a fake tax refund. Scammers might send emails that look like they are from the IRS, informing you that you’re eligible for a refund and directing you to a verification link. If you click on it, you’ll end up on a website asking for sensitive details, like your Social Security number and bank information, all of which can then be used for identity theft.  

So, how can you protect yourself from these scams? Staying informed about potential red flags is the most important first step. Remember, the IRS will never contact you via email or text message first. If you get an unexpected call, email, or message claiming to be from the IRS, don’t engage. Instead, reach out to the IRS directly through their official phone number or website to verify any claims. Remember, a legitimate authority will never demand immediate payment or threaten you with arrest. Read more about how to stay safe online on WeStreet’s Digital Security page.

Avoiding Tax Return Scams  

Here are a few tips to help you stay safe:  

1. Use Secure Connections: Make sure you’re on a secure internet connection when handling sensitive information. Avoid public Wi-Fi networks for banking or tax filing, as they can be less secure and a target for hackers.  

2. Keep an Eye on Your Accounts: Regularly check your bank statements and credit reports for any unfamiliar transactions. Spotting unauthorized activity early can help you take action against potential identity theft.  

3. File Your Taxes Early: Don’t wait until the last minute! Filing your taxes early can help reduce the chance of a scammer filing a return in your name before you do.  

4. Use Security Software: Consider investing in good antivirus and anti-malware software to protect your devices. Keeping your software updated can help safeguard against new security threats.  

5. Ask for Help if You Need It: If you’re feeling unsure about the tax filing process or worried about scams, don’t hesitate to reach out to a tax professional. A CPA or enrolled agent can walk you through the process and help ensure everything is handled correctly.  

6. Share What You Learn: Knowledge is power. Stay informed about the latest scams and share this information with friends, family, and coworkers. The more people know about the signs of tax scams, the less likely they are to fall victim.  

If you do encounter a scam, it’s important to report it. Whether you get a suspicious phone call or see a phishing email, report it to the IRS directly. They have a dedicated page for reporting tax fraud and scams, which helps them track these activities and protect others.  

As tax season arrives, arm yourself with the knowledge to identify and steer clear of tax return scams. Being aware of these tactics makes a big difference. By taking smart precautions, keeping an eye on your information, and reporting anything suspicious, you can navigate tax season with confidence. And remember, when in doubt, it’s always a good idea to reach out to the IRS or a trusted tax professional for guidance.