Avoiding Scams During Tax Season

In 2024, the IRS received nearly 300,000 reports of identity theft, leading to $5.5 billion in tax fraud.  90% of us file our taxes online, making us targets for scammers whose attempts to defraud filers have become even savvier.  

Filing taxes can be stressful or confusing for some people, and believe it or not, criminals often target individuals during this time, creating a sense of panic or urgency.  Those crafty cybercriminals use this opportunity to ramp up their efforts to trick you out of your hard-earned money, using texts, emails, and phone calls that appear to come from the IRS or tax preparers.

Let’s preface this by saying that the IRS will never contact you via email, text, or phone. If they need to reach out to you, they will do so via regular mail.

Tax-related scams can appear to be totally legitimate. If you are expecting important tax documents or acknowledgement that your taxes have been accepted, this can be especially concerning.

Here are six scams, or methods scammers use, to be aware of:

• One of the newest scamming trends is receiving a message claiming “Your taxes have already been filed,” when they have not.  This tactic is meant to shock you into clicking a link which will ask you for additional personal information. You may also be contacted via phone by someone claiming to be a tax professional or a representative of the IRS. 
• Another popular scam involves messages claiming that the IRS needs to “verify your identity,” or your return “has an error that needs to be corrected,” or your tax preparer needs you to “review urgent documents.” 

• Scammers may also use social media to promote false claims about tax credits or deductions. You should only trust your licensed tax professional or a verified source like the IRS.

• The power of AI is also playing a role in scams. If a criminal can capture a few seconds of a voice recording of your accountant or financial advisor, they are able to create a fake phone call requesting sensitive information. Always make sure that calls are coming from a trusted number that’s already on your phone. If you suspect that the call might be fake, you can start asking detailed questions like “What do you need this for?” or “How was the baseball game last week” that can throw off the AI software.

• Sometimes scammers will call offering to help you set up your online IRS account. Basically, they’re trying to get your Social Security information so that they can file your taxes themselves and receive your refund. There are indeed legitimate services available, but creating an online IRS account is fairly simple. The IRS website has a guide to help you complete this correctly.

• You might receive an email or text promising to find unclaimed tax refunds. You will be asked to click a link and provide social security and personal information in order to claim your “refund.”  This is definitely a scam, and criminals might also ask for a fee for this service – so in essence, you are getting scammed twice.

How can you protect yourself?  Keep these three simple words in mind: Stop. Think. Respond.

STOP: Avoid clicking on unsolicited emails or text claiming to be from the IRS. Do not open click links, attachments, or call numbers included in a suspicious message.

THINK: Ask yourself some questions. Am I expecting this communication? Does the message that you received fill you with a sense of urgency or fear? Does the IRS normally contact people this way?

RESPOND (or not): Contact your tax preparer directly using their known phone number – not the one in the message – and ask if they contacted you. If it’s an email communication, log into your tax service using your saved bookmark – NOT the link provided to you. If you are concerned, visit IRS.gov website.

Remember, the IRS will NEVER contact you via text, email, phone, or social media. Reputable tax preparers will NEVER ask you for sensitive info through unsolicited messages.  Use your gut instinct. If something feels off, it probably is.

Stay safe!