Scam Alert: Watch Out for These Summer Tax Scams
Last updated on July 14, 2023
Tax scams do not happen only during the tax season, they happen all year round, which means that you need to be careful of scammers at all times. Even though tax scams are broadly categorized as identity theft or phone scams, the scammers keep using different methods to get taxpayers to share their information or transfer money to them. The Ridge Field Press shares the tax scams that you may come across this summer and what you should do if you fall victim to them:
“Identity Theft. Identity thieves steal personal and financial information to commit fraud or other crimes. This can include your Social Security number or bank information. An identity thief may file a phony tax return to claim a fraudulent refund.
“The IRS has a special identity protection page on IRS.gov. It has many resources you can use to reduce your risk of becoming a victim. The page can also tell you what steps to take if you are a victim of identity theft and need help. This includes how and when you should contact the IRS Identity Protection Specialized Unit.
“Phone Scams. In these scams, thieves pose as the IRS and call would-be victims with one goal in mind: to steal their money. Callers will tell you that you owe taxes and demand immediate payment. They will tell you that you must pay the bogus tax bill with a pre-loaded debit card or wire transfer. The callers are often abusive and threaten arrest or deportation. They may know the last four digits of your Social Security number. They also rig caller ID to falsely show that the call is from the IRS.
“Keep in mind that if a person owes taxes, the IRS will first contact them by mail, not by phone. The IRS doesn’t ask for payment with a pre-paid debit card or wire transfer. If you owe, or think you might owe federal taxes and you get one of these calls, hang up. Call the IRS at 800-829-1040. The IRS will work with you to pay what you owe. If you don’t owe taxes, call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
“Phishing Scams. Criminals use the IRS as bait in a phishing scam. Scammers typically send emails that purport to come from the IRS. They often lure their targets with a false promise of a refund or the threat of an audit. They may also set up a phony website that looks like the real IRS.gov. These phony sites often have the IRS seal and other graphics to make them appear official. Their goal is to get their victim to reveal personal and financial information. They use the information they get to steal identities and commit fraud.
“The IRS doesn’t contact people by email about their tax account. Nor does the agency use email, social media, texting or fax to initiate contact or ask for personal or financial information. If you get an email like this, do not click on a link or open any attachments. You should instead forward it to the IRS at phishing@irs.gov. For more on this topic visit IRS.gov and select the ‘Reporting Phishing’ link at the bottom of the page.”
Recent Posts
- Tax Implications of Selling a Home in 2024
- Maximizing Your Tax Refund: Deductions and Credits You Shouldn’t Miss
- How the Foreign Account Tax Compliance Act (FATCA) Affects Expats
- IRS Notices: What They Mean and How to Respond
- Essential Tips for Filing Your Taxes Early and Error-Free
- Tax Breaks Every Homeowner Should Know in 2024
- What to Do if You Owe Back Taxes: IRS Debt Relief Options
- How to File Taxes as a Small Business Owner: A Complete Guide
- How to Identify Tax Scams and Avoid Fraudulent Tax Relief Companies
- Seeking Help for Back Taxes Relief