Protect Yourself: Tips and Warnings for Avoiding Tax Scams and Identity Theft

With the tax deadline just around the corner, it's crucial for taxpayers to be vigilant against potential scams that could compromise their personal and financial information. The IRS has already processed a significant number of federal returns, but there is still time for scammers to attempt to steal sensitive data. Here are some common tax scams to watch out for and ways to protect yourself.

Be Cautious of Unsolicited Offers

If you receive unsolicited emails, texts, or calls from unknown individuals or organizations claiming to help you with potential tax savings or refunds, exercise caution. Scammers may use persuasive language to lure you into providing personal information with promises of a larger refund. Always verify the legitimacy of such offers and avoid sharing sensitive details without proper authentication.

Avoid Suspicious Requests for Information

Be wary of any correspondence, whether through calls, emails, or text messages, that requests valuable personal and financial information. Scammers posing as reputable tax or financial entities may try to deceive you into divulging sensitive data, leading to potential identity theft. Additionally, be cautious of schemes that prompt you to set up online accounts, as they may be a ploy to obtain your Social Security number, Individual Taxpayer Identification Number, and other critical details.

Watch Out for "Ghost Tax Preparers"

Exercise caution when seeking assistance from tax preparers. A "ghost tax preparer" may appear legitimate but could omit essential details on your return, such as their signature or tax identification number. Always review your returns thoroughly before submitting them and ensure that all information is accurately documented. Remember that the IRS usually contacts taxpayers through regular mail and does not initiate contact via email, text, or social media regarding tax-related matters.

Tips for Safeguarding Against Tax Scams

To protect yourself from falling victim to tax scams, consider the following tips:

• Verify the legitimacy of tax preparers by checking their tax ID numbers on the official IRS website.
• Set up an online account directly through the IRS website and utilize the approved authentication process.
• Exercise caution when receiving unsolicited communications claiming to be from the IRS or related entities, and report any suspicious activity immediately.
• Be vigilant about reviewing and confirming the details of your tax returns before submission to identify any potential red flags or discrepancies.

Reporting Suspected Tax Scams

If you suspect that you have been targeted by a tax scam, it's essential to act promptly by reporting the incident to the relevant authorities. The IRS advises reporting unsolicited emails purporting to be from the agency to phishing@irs.gov and notifying the U.S. Treasury Inspector General for Tax Administration hotline if you receive unexpected calls from individuals claiming to represent the IRS.