Tax Scams: Don't Fall Prey!
It is that time of year when you know you are getting back some money to take the family on that trip or make the down payment on the new vehicle you have been needing, only to find that someone has scammed you out of your IRS tax refund. As a CPA I have seen multiple attempts at these scams, but with some precautions we can help prevent someone from stealing your money.
There are several tax scams happening right now to be on the alert for. As always, even if you are not a client, if you feel you have been scammed please contact me and law enforcement to report the situation and advice on your next step. Below are a few scams victimizing people just like you and me:
- Erroneous Refunds
If you find money in your account from the IRS that you aren't expecting, don't think they are sending you on a shopping spree to thank you for your years of timely filing! Scammers are filing fake returns, using valid bank accounts, then use a variety of tricks to collect the money. For example, they may pose as a debt collection agency attempting to collect for the IRS, demanding the money be transferred to them. Whatever you do, do not do anything with the money until you have spoken with a professional on how to proceed, and follow the procedures outlined by the IRS on how to return the funds.
- IRS Impersonation Telephone Calls
The IRS will not call you. PERIOD. If someone is demanding you pay them with gift cards or wire transfers, posing as an IRS representative, this is a scam. These scammers use threatening tactics such as sending law enforcement to your home. If you owe the IRS money, they will send you a notice in the mail. DO NOT give these callers your debit or credit card numbers over the phone. Again contact a professional if you receive a call like this one.
- E-mail or Text Message Phishing
Phishing is a term used to refer to scammers "fishing" for your personal information or financial information in order to steal your identity. Beware of emails and text messages sent from someone claiming to be with the IRS or a tax professional. Again, the IRS will communicate with you through notices sent through the US Postal Service.
- What to do
If you feel that you are a victim of one of these scams or something similar, call the Treasury Inspector General for Tax Administration at 1-800-366-4484 and follow the procedures the IRS has set forth. You can also contact your local law enforcement agency to make a report. Local law enforcement may not have the jurisdiction for your specific case, but the report can help add to a larger case to assist in stopping these scammers. Here is the link to the IRS web site: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity