Tax Season Stress to include Watching Out for Tax Scams
Tax scams are often as predictable as taxes themselves; they reappear each tax season with a slightly different spin, but the central theme is scammers posing as the IRS trying to trick people into paying or sharing personal information.
Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, and email to set up individuals, businesses, payroll, and tax professionals.
Here are a few of the most common tax scams and red flags to watch out for:
- The IRS warns taxpayers to be on the lookout for a new scam mailing that tries to mislead people into believing they are owed a refund. The new scheme involves a mailing coming in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead with contact information and a phone number that do not belong to the IRS and wording that the notice is “in relation to your unclaimed refund.”
- Another tax scam to look out for is tax identity theft. This occurs when a scammer uses your government-issued identity number to file a tax return in your name and collect your refund. It can also be someone using your information to get a job. Consumers don’t usually realize they have been victims of tax identity theft until they get a written notice from the IRS saying that more than one tax return was filed, or they were paid by an employer they don’t know.
- Email phishing scams appear to be from the IRS and include a link to a bogus website intended to mirror the official IRS These emails state, “You are to update your IRS e-file immediately.” The emails sometimes mention USA.gov and IRSgov (without a dot between “IRS” and “gov”).
- Here is an example of an email phishing scam: “Received an email telling me that after annual calculations of my fiiscal activity I was eligible to receive a tax return of $976.00. At the bottom it recommended using a prepaid card because sending funds does not support this card. Within the email was a link for a Tax Return Form.”
- Traditional IRS impersonation scams start with a phone call and take two primary forms.
- Here are some tips to avoid tax scams:
- Only deal with trustworthy tax professionals and tax preparation services. Beware of ghost tax preparers who don’t sign your tax returns.
- Remember the IRS does not initiate contact with taxpayers by email, text message, or social media to request personal or financial information.
- Watch for bad grammar and odd punctuation when reading emails and letters claiming to be from the IRS.
- When in doubt, contact the IRS to confirm any contact you receive is legitimate.
- If you become a victim of tax identity theft, contact the IRS at 1- 800-908-4490.
Experiencing fraud can often be both financially and emotionally devastating. I share these monthly columns with you to give you the awareness to be able to fight back against scammers. Please share this information to protect others in your circle.
John Morales
Special Agent in Charge, FBI El Paso
With El Paso so close to the Mexican border and Mexico in the throws of revolutionary struggle during the early 1900s, southwest Texas became a key focus of the Bureau soon after its founding in 1908. As the FBI heads into its second century, the El Paso Division remains committed to protecting the people and defending the nation while upholding the rule of law and the civil liberties of all.