Recognizing Tax Scams and Fraud: What to Watch Out For

Tax season is a prime time for scammers looking to steal personal and financial information. Fraudsters often pose as the IRS or other official entities, using fear and deception to trick people into handing over their money. Knowing the warning signs can help protect you from falling victim to tax fraud.

Common Tax Scams to Watch Out For

1. Misleading Messages About Tax Refunds or Payments: Scammers often send emails, text messages, or social media messages claiming you are owed a tax refund or that you must make an immediate payment. They create a sense of urgency, hoping you’ll act before thinking. Always verify tax refund or payment requests by checking your IRS account directly at IRS.gov.
2. Threats and Demands for Immediate Action: The IRS will never demand payment using threats or intimidation. If someone claims you must pay immediately – or they’ll call the police or immigration authorities – it’s a scam. The IRS follows a formal process and will never ask for payment via phone, text, or social media.
3. Fake Websites and Phishing Attempts: Scammers often create fake websites that look like the IRS or tax preparation services to steal your personal information. Be cautious of links in emails or texts, especially those urging you to enter sensitive details. Always go directly to IRS.gov rather than clicking on links from unsolicited messages.

What to Do If You’ve Been Targeted

If you suspect you’ve been scammed or provided personal information to a fraudster, take action immediately:

1. Report the scam to the IRS by forwarding suspicious emails to [email protected].
2. Check your IRS account at IRS.gov to ensure no unauthorized tax filings have occurred.
3. Monitor your financial accounts for unusual activity and consider placing a fraud alert on your credit report.
4. Contact your bank if you believe your financial details have been compromised.