Prevent Tax Scams this Filing Season: Essential Tips

As tax season unfolds, the risk of falling victim to scams increases. Unscrupulous individuals seek to exploit taxpayers, often through deceptive tactics. Understanding these scams is crucial for safeguarding personal information and finances.

Key Tax Scams to Avoid This Filing Season

The International Association of Better Business Bureaus (BBB) highlights two primary types of tax scams that taxpayers should be wary of:

• Threatening Calls: Scammers impersonate IRS agents, claiming the victim owes back taxes. They pressure individuals to pay through prepaid debit cards or wire transfers, often using threats of fines or arrest.
• Fake Refunds: Another common tactic involves scammers falsely promising tax refunds. They request personal information under the guise of processing these refunds, which can lead to identity theft.

Additional Tactics Employed by Scammers

Scammers often employ various strategies to appear legitimate. These include:

• Using fake names and badge numbers.
• Displaying caller ID that mimics official IRS numbers.
• Sending emails that utilize IRS logos and formal language to seem authentic.

Victims are frequently pressured to act quickly, leaving them little time to think critically or verify the information being presented.

Understanding IRS Procedures

Taxpayers need to know that the IRS will never initiate contact through phone calls or emails. All necessary communication begins via mail, allowing taxpayers the opportunity to inquire and respond appropriately. Key points to remember include:

• The IRS does not demand immediate payment over the phone.
• They will not request specific payment methods, such as wire transfers or prepaid debit cards.
• Taxpayers can appeal any decisions made by the IRS and ask questions regarding their tax situations.

Preventive Measures Against Tax Scams

To protect against identity theft and fraudulent tax activities, the BBB advises the following strategies:

• File taxes as early as possible to minimize the chance of scammers using your information to submit fraudulent returns.
• If uncertain about a communication claiming to be from the IRS, contact the agency directly to verify the legitimacy.
• Stay informed about new scam tactics by following updates from the BBB and IRS.

Being proactive and informed can help taxpayers navigate the complexities of tax season while avoiding potential scams. Remain vigilant to safeguard your personal and financial information.