Every year, millions of Americans file their taxes, but unfortunately, some fall prey to tax scams. Tax scams are schemes in which fraudsters try to steal taxpayers’ money or identities by pretending to be the IRS or other legitimate tax entities. In this article, we’ll discuss common tax scams and how to protect yourself from falling victim to them.
- Phishing Scams
Phishing scams involve fraudsters sending fake emails or making phone calls claiming to be the IRS. The emails may contain links to websites that look like the official IRS website, but they’re fake and designed to steal sensitive information. If you receive an email or phone call claiming to be from the IRS, don’t respond or click on any links. Instead, call the IRS directly to verify if they’ve tried to contact you.
- Identity Theft
Identity theft occurs when a fraudster uses someone else’s personal information, such as their Social Security number, to file a fraudulent tax return and steal their refund. To protect yourself from identity theft, keep your personal information secure and avoid sharing it with anyone who isn’t authorized to have it. Use strong passwords and two-factor authentication to secure your online accounts.
- Preparer Fraud
Some tax preparers engage in fraudulent activities, such as claiming fake deductions or promising inflated refunds to their clients. Before hiring a tax preparer, do your research, and check their credentials and reviews. Don’t trust preparers who claim they can guarantee a specific refund amount, as every taxpayer’s situation is unique.
- Fake Charities
Fraudsters may also use tax season to set up fake charities to solicit donations from taxpayers. They may even use names that sound similar to legitimate charities to trick people into donating. Before donating to any charity, do your research to ensure they’re legitimate and registered with the IRS.
- Social Media Scams
Scammers may use social media platforms to contact taxpayers and try to steal their personal information or money. They may use fake profiles or pose as IRS representatives to trick people into sharing sensitive information. Be cautious when receiving messages from strangers on social media, and never share your personal information with anyone you don’t trust.
In conclusion, tax scams can cause significant financial harm and even identity theft. To protect yourself from tax scams, stay vigilant, and never share your personal information with anyone you don’t trust. If you suspect you’ve fallen victim to a tax scam, report it to the IRS immediately. Don’t let fraudsters ruin your tax season. Stay informed, stay safe, and protect yourself from tax scams.