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do our taxes — but it’s also the same time that tax scammers go to work. What
scams should you watch for — and how can you avoid being victimized?
Sadly, the list of scams is
pretty long, including demands for payment or requests for “additional
information” pertaining to your tax refund, in which the sender asks for your
Social Security number and other personal information. These scam emails can look
quite official, often incorporating the IRS logo. You might also receive scam
text messages containing bogus links claiming to be the IRS website or an
online “tool” that can help process your refund faster.
But keep these points in mind:
- The IRS generally won’t contact you by
phone and won’t contact you by email, text messages or social media
channels to ask for personal or financial information. The IRS begins most
correspondence to taxpayers through regular mail delivered by the U.S.
Postal Service.
- The IRS won’t call to demand you make an
immediate payment through a prepaid debit card or wire transfer. If you
owe taxes, the IRS generally will mail you a bill. And the IRS won’t
threaten to bring in the police or another law enforcement group to arrest
you for not paying your taxes.
In general, be extremely
skeptical about any type of communication purporting to be from the IRS that
sounds bullying or over-inquisitive — and certainly don’t give out any personal
or financial information. But these fake messages aren’t the only tax-season
scams out there. You might even receive a direct deposit from what appears to
be the U.S. Treasury Department — but if you weren’t expecting it, something’s
likely not right. This payment could be a sign that a fraudulent tax return was
filed in your name, and it might be followed by a communication from a supposed
IRS agent requesting this overpayment be sent to them. If this happens to you,
you’ll want to contact the IRS right away, and you could also ask your bank to
return the deposit to the government.
Other scams don’t claim to
originate directly from the IRS, as scammers pretend to be from real or
imaginary tax organizations. For example, you could get a message from the
Taxpayer Advocate Service, an independent organization within the IRS, but this
agency won’t contact you without a legitimate reason. Or you could receive a
message from the nonexistent “Bureau of Tax Enforcement.” Your best bet is to
delete these messages immediately or send them to your spam folder.
Not all tax season scams
originate from fraudulent IRS representatives or fake agencies. You also need
to be careful about whom you hire to prepare your taxes. If possible, get a
recommendation from a trusted friend or family member. And keep in mind that a
legitimate tax preparer must have a valid Preparer Tax Identification Number
and must sign your tax return. If someone doesn’t have this number or is
reluctant to sign your return, it may well be a sign that this individual is a
“ghost preparer” who only wants to pocket your fee.
Tax scammers are, unfortunately,
here to stay — but remaining vigilant can help you keep them from causing
problems for you in this tax season and all the ones in the future.
This article was written by
Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones. Member SIPC.
