Here are some scams that may cost you this tax season
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Tax season is underway — and the IRS is warning of a likely increase in scams targeting taxpayers.
Agency officials are sounding the alarm on “IRS impersonation scams,” in which criminals pose as IRS agents to try stealing money or personal information. The latter can lead to identity theft — which allows crooks to file tax returns in victims’ names and steal their tax refund, in addition to other negative financial effects.
Common frauds this tax season may include text-message scams, e-mail schemes, phone scams and unemployment fraud, according to an IRS bulletin issued Thursday.
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These cons can happen throughout the year, but tax season is an especially ripe time for fraudsters.
“With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds,” IRS Commissioner Chuck Rettig said in the memo.
Here are some common scams to watch for.
1. Text message scams
Text hoaxes involve messages with bogus links that claims to be IRS websites or other online tools. Last year, for example, there was an increase in texts referencing Covid-19 and stimulus payments.
The IRS doesn’t use texts (or social media platforms) to discuss personal tax issues, such as bills or refunds.
“The IRS reminds everyone NOT to click links or open attachments in unsolicited, suspicious or unexpected text messages — whether from the IRS, state tax agencies or others in the tax community,” according to the agency bulletin.
2. E-mail hoaxes
E-mail schemes are similar — they involve victims getting an unsolicited message appearing to be from the IRS or a program closely linked to the agency. However, the IRS doesn’t use email to request personal or financial information.
The tax bureau initiates most contacts via regular mail delivered by the U.S. Postal Service.
(The IRS will call or come to a home or business in some circumstances, such as when a taxpayer has an overdue tax bill or delinquent tax return. But they’ll generally first receive several letters from the IRS in the mail.)
3. Phone scams
Criminals generally leave pre-recorded, urgent messages requesting a call back, and threaten victims with an arrest warrant, deportation or revocation of licenses if they don’t.
Thieves can mask the true caller ID number to make it seem like an IRS office, local sheriff’s office, state department of motor vehicles or other federal agency is calling.
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Callers may be requesting payment for an owed tax bill. However, the IRS will generally first mail a bill to taxpayers, according to the agency. And all tax payments should never be made payable to third parties — only to the U.S. Department of the Treasury.
The IRS will never ask for credit or debit card…
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