Tax Scams: How to Protect Yourself Year-Round
Tax scams are more prevalent than ever, and they’re not just limited to tax season. Scammers work all year to steal personal information, money, and even file fake tax returns using private data. With so many deceptive tactics, it’s essential to know how to stay alert to protect yourself. Let’s look at the primary scams targeting taxpayers and practical steps you can take to avoid them.
Know How the IRS Will (and Won’t) Contact You
One key rule: the IRS will never initiate contact with you by phone, email, text message, or social media. If the IRS needs to communicate, they’ll send a letter. So, if you receive a call or message out of the blue claiming to be from the IRS, it’s likely a scam. Understanding this can protect you from several types of scams.
Common Tax Scams
IRS-Impersonation Phone Scam
One of the most widespread scams involves callers claiming to be IRS agents. These scammers may use fake names, IRS badge numbers, and even change their caller ID to look like an IRS number. They may demand immediate payment, often via prepaid debit card or wire transfer, and if you refuse, they might threaten arrest or license suspension. Remember, the IRS will never call to demand payment without sending you a bill first. If you receive one of these calls, hang up immediately and report it.
Phishing Emails
Scammers also use “phishing” emails designed to look like official IRS communications. These emails might link to fake websites that request sensitive information like your Social Security number or bank details. Don’t reply, click links, or open attachments in suspicious emails. Instead, forward these emails to the IRS at phishing@irs.gov and delete them.
Text Message Scams
Similarly, text scams often claim you have a refund or stimulus payment available. They may include links to phony IRS websites. Remember, the IRS will never send sensitive information or request details via text message.
How to Respond if Targeted
If you’re contacted by someone claiming to be the IRS:
Don’t provide any information. Hang up or ignore the message.
Report the call or message. For phone scams, contact the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or visit www.tigta.gov.
Be cautious about links. Avoid clicking on any links in unsolicited messages and forward scam emails or screenshots of scam texts to phishing@irs.gov.
Additional Ways to Stay Protected
Secure personal data. Only share your Social Security number when necessary, and don’t carry sensitive documents unnecessarily.
Review privacy settings on social media, and avoid sharing too much personal information.
Monitor financial accounts and credit reports regularly.
In conclusion, staying vigilant and knowing how to recognize and respond to these scams can help protect you and your information. When in doubt, remember that the IRS’s initial contact is always by mail, not by phone, text, or email.
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