Tax season is often a time of stress and confusion for many, and unfortunately, it’s also prime time for scammers to exploit that anxiety. Tax scams are one of the most common forms of fraud, and criminals have become increasingly sophisticated in their tactics. Whether you’re filing your taxes yourself or working with a professional, it’s crucial to recognize the warning signs of fraud and know how to protect yourself from becoming a victim.

Every year, thousands of Americans fall victim to tax-related scams. The common tactics included:

  • Phishing Emails or Texts: Scammers pretending to be the IRS or tax preparation companies, offering fake refunds or threatening legal actions.
  • Fake IRS Calls: Fraudulent calls demanding immediate payment or personal details, often using threatening language to create a sense of urgency. The IRS will never call you demanding payment.
  • Social Media Ads: Ads promising massive refunds or “free” tax services, which, when clicked, led to fake websites designed to collect personal information.
  • Unlicensed Tax Preparers: Some scammers posed as tax experts, offering rock-bottom prices and promising huge refunds, only to disappear with clients’ sensitive financial data.

How to Avoid Becoming a Victim

  1. Know the Red Flags: The IRS will never call you demanding immediate payment or ask for personal information over the phone. They will send you official written notices if they need anything from you.
  2. Verify Tax Preparers: If you’re working with a tax preparer, make sure they are licensed and certified by the IRS. Check reviews and verify their credentials through the IRS website.
  3. Don’t Click on Suspicious Links: Avoid clicking on links in unsolicited emails or text messages. The IRS does not send unsolicited emails or texts asking for personal information.
  4. Secure Your Information: Always ensure that your devices are secure. Use strong passwords, enable two-factor authentication where possible, and avoid using public Wi-Fi for financial transactions.
  5. Get a Second Opinion: If something seems off, trust your instincts. Ask a trusted friend or family member for advice, or contact the IRS directly using a phone number from their official website.

If you believe you’ve fallen victim to a tax scam, it’s important to act quickly. Contact the IRS and monitor your financial accounts. Report the scam to the Federal Trade Commission (FTC) and local authorities.  Seek professional help, if necessary, with someone who specializes in tax fraud to help guide you through the process of recovering from the scam.