With the tax filing deadline just around the corner, the IRS is cautioning taxpayers against the rising tide of scams aimed at stealing tax refunds. In 2023, the IRS reported a staggering 294,138 identity theft complaints, a near-record high, indicating a troubling trend where scammers increasingly target taxpayers.
Common Tax Scams and How to Avoid Them
Phishing Emails and Messages
Scammers often pose as the IRS or other legitimate entities in phishing emails and messages. These fraudulent communications might offer fake tax refunds or threaten legal consequences for non-existent tax fraud. Lisa Plaggemier, executive director of the National Cybersecurity Alliance, advises skepticism towards any unexpected emails, calls, or texts claiming to be from the IRS. The agency predominantly communicates through the USPS.
Identity Theft Risks
Identity theft remains a prevalent method in tax scams, with personal information being used to file fraudulent returns. Given the numerous data breaches, it’s wise to assume your personal information might be accessible on the dark web. The IRS reminds taxpayers that it never initiates contact via email, text, or social media about tax bills or refunds. Additionally, the IRS won’t call about a tax bill without first sending a mailed notice.
Protecting Yourself This Tax Season
Recognizing Suspicious Activities
Be vigilant for any unusual communications. The IRS doesn’t demand immediate payment or ask for credit or debit card numbers over the phone. If you receive a message urging urgent action from the IRS, take it as a red flag, since IRS procedures are rarely urgent.
Filing Taxes Early
Filing your tax return early can prevent scammers from filing fraudulently in your name. However, with the deadline approaching, Plaggemier warns against rushing, as panic can make you more susceptible to scams. Stay calm and verify any IRS communications independently.
Most taxpayers have until April 15 to file their returns or request an extension. With over 146 million individual tax returns expected this year, staying alert and cautious is more important than ever.
