As tax filing season officially began this week, it is vital for individuals and businesses to remain apprised and cautious of potential tax season scams that could compromise their financial security. With the rise of targeted tax season scams, it has become increasingly important to educate yourself on the various types of tax scams as some are harder to identify than others.
Phishing & Impersonation Scams
Many scammers will attempt to reach out to you across all possible avenues. This includes phone calls, emails, text messages, and potentially even social media. They may contact you claiming to be with the Internal Revenue Service and request your private information or prompt payment. Do not provide any personal information requested through any of these methods of communication. It is important to be aware that the IRS will not initiate contact via unsolicited emails, text messages, or phone calls. Furthermore, the IRS will initiate most contact with you via mail.
Tax Identity Theft & Tax Refund Fraud
Identity theft is a major concern during the tax filing season. Those running tax-related scams may utilize stolen personal information to file fraudulent tax returns and claim the associated refunds. Especially during this season, you should regularly monitor all your accounts for suspicious activity. In the event you notice something that raises concern, be sure to report any irregular activity to the appropriate authorities.
Promise of an Inflated Refund
The IRS Criminal Investigation agency recommends that individuals refrain from employing tax preparers who guarantee substantial refunds to avoid being scammed. This promise of a large refund should serve as a red flag. To verify the legitimacy and ethical conduct of your tax preparer, the agency advises individuals to choose a reputable tax professional. The professional should sign and input a preparer tax identification number (PTIN) on the tax return and furnish a copy of the return for record-keeping purposes. Additionally, one should avoid signing a blank tax form at all costs.
Fraudulent Tax Software Programs
When filing your taxes, prior to engaging with a tax software platform, ensure it is legitimate. It’s best to stick to well-known, trusted, and accredited tax software providers. Scammers have been found to create fake platforms that mimic reputable services. Engaging with these fraudulent platforms exposes personal and financial information and can lead to your sensitive information being compromised.
As taxpayers head into the 2024 tax season, remaining informed about potential scams is pertinent for protecting one’s financial interests and security. Remain cautious and seek advice from reputable and experienced tax professionals. Remaining vigilant will allow taxpayers to confidently navigate the tax season and avoid falling prey to tax scams.
If you have any related questions or if you are uncertain about whether you have been scammed, it is advisable to call the Internal Revenue Service and notify the Better Business Bureau as both organizations are vigilant about handling matters pertaining to attempted fraud, in particular tax season scams.
To seek counsel from our taxation practice group, please reach out to request a consultation or call us at 216-696-1422.
