Avoid Tax Scams
With tax time right around the corner, that means there are also tax scammers getting ready to get creative in their attempts to trick and intimidate taxpayers. Even though you can encounter fraudsters at any time throughout the year and you should always take precautions to keep your information secure, it’s important to be extra vigilant during tax season. One of the best ways you can protect yourself is by learning the common warning signs of tax scams. Be on the lookout for these red flags so you can protect yourself from fraud.
Communication Method
First, it’s important to note that the IRS, or Internal Revenue Service, is an official government agency, and will always contact you as such. The IRS does not initiate contact with taxpayers by email, text, or social media messages. They will never contact you to request personal or financial information through one of these contact methods. Any official communication from the IRS will arrive via a letter in the mail, delivered by the United States Postal Service. If you do have an overdue tax bill, delinquent tax return, or any other issue that the IRS needs you to resolve, they will send you several official notices by mail before contacting you by phone or coming to your door. Remember that the IRS does not send out any forms of unsolicited communication, including emails, to the public. The IRS would not email any sensitive documents such as a tax transcript. If you receive any suspicious phone calls or messages, do not engage with the scammer, and do not give out any information, simply ignore their communication and requests.
If you receive any suspicious emails or other communication claiming to be from the IRS, do not open any attachments, download any files, or click any links. Instead, forward the message to phishing@irs.gov to report it. You can also report scams to the Federal Trade Commission at reportfraud.ftc.gov, or to the Treasury Inspector General for Tax Administration via the IRS Scam Reporting form. Additionally, you can contact the Office of the Attorney General and file a complaint through the Georgia Department of Law Consumer Protection Division.
Payment Method
Along with knowing how the IRS typically contacts tax payers, knowing how the IRS requests payment will also help you detect scams. The IRS will never call you and demand immediate payment over the phone. They will especially never request payment via specific payments methods such as gift cards or prepaid debit cards. These are not secure payment methods. No government agency will request to receive payment in the form of gift cards. The IRS will also never ask you for your debit card and credit card numbers over the phone. If you do owe any payments to the IRS, you will receive a bill and accompanying notice in the mail, and tax payments will always need to be made payable to the United States Treasury.
Threats
Making threats is a sure red flag that you are dealing with a scam artist. The IRS will never threaten to have you arrested either by local police officers or immigration officers. The IRS is also not able to revoke your driver’s license or immigrations status. Any threats of this nature are unfounded and are merely emotional intimidation tactics meant to trick victims into compliance with the attempted scam. Additionally, the IRS will never demand that you pay taxes without first giving you the opportunity to question or appeal the amount you supposedly owe. It’s incredibly important to know your rights and not be intimidated by unfounded threats. Any attempts to circumvent your rights need to be taken as an immediate red flag.
Other Ways You Can Protect Yourself
In addition to familiarizing yourself with the communication and payment methods used by the IRS and knowing what red flags to be on the lookout for, there are other steps you can take to protect yourself from tax scams as you prepare to file this year. If possible, file your taxes early this year. Tax scammers strike early and file false returns using stolen Social Security Numbers, before most taxpayers get around to filing their own returns. The targeted taxpayers are none the wiser until they attempt to file and are informed that a return has already been filed in their name, and the refund has already collected by a scammer. Your safest best is to file as early as possible to thwart any attempts to access your information. If you file your taxes online, fill out your return from your home computer using a secure network rather than a public computer or public Wi-Fi. Using a public device or network opens the door for fraudsters to steal personal data that was transmitted. If you use a tax preparation service or software online, use a strong password and enable multi-factor authentication whenever available. Multi-factor authentication adds another level of security when logging in, making it more difficult for a scammer to access your information. Finally, if you use a tax preparer, make sure you choose a legitimate one. If they make promises of an unusually large tax return without ever reviewing your finances, they are a scam artist. Review the credentials of any tax preparer you are considering and ask for references before making any decisions. The IRS provides a Directory of Federal Tax Return Preparers that you can use to find a credible tax preparer in your area.
Keep an eye out for these red flags this tax season so you can protect yourself from financial fraud, and always remember the number one piece of advice when it comes to fighting scams: if something sounds too good to be true, it probably is. At Robins Financial, safeguarding our members’ information is a top priority for us, and we do everything we can to keep you safe. Visit our Security & Fraud information page to learn more about how we protect our members every day.
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