The good news? A little awareness goes a long way to keeping yourself safe. Here’s what to watch for and how to protect yourself.
Common Tax Scams
- IRS Impersonation Calls – Scammers call, claiming you owe taxes and threatening arrest or legal action if you don’t pay immediately. The IRS will never demand immediate payment over the phone.
- Phishing Emails & Fake Websites – Fraudulent emails or websites trick people into providing Social Security numbers, bank details, or login credentials. Always verify website URLs and avoid clicking on suspicious links.
- Tax Preparer Fraud – Dishonest tax preparers promise inflated refunds or steal personal information. Always choose a reputable tax professional.
- Identity Theft – Scammers file fake tax returns using stolen personal data to claim refunds. Protect your Social Security number and file taxes early to reduce risk.
How to Stay Safe
- The IRS will never call, email, or text demanding immediate payment.
- Use strong passwords and enable two-factor authentication for tax-related accounts.
- Verify tax preparers through the IRS directory before sharing personal details.
- If you are a confirmed victim of tax-related identity theft, you can apply for an identity protection PIN. This pin prevents scammers from filing a tax return using your Social Security number. The IP PIN is known only to you and the IRS.
- Report suspected scams to the IRS at [email protected]
Staying aware and cautious is the best defense against tax scams. By protecting your information and knowing the warning signs, you can keep your finances safe and navigate tax season with confidence.