How to Recognize the Red Flags of Tax Scammers

As the tax deadline approaches, criminals take advantage of the stress that comes with paying taxes or talking to the Internal Revenue Service to gain access to sensitive information and file fraudulent tax returns. The IRS flagged over $5.7 billion in tax fraud in 2022 alone and 2023 is looking just as precarious with refund scams increasing exponentially.
So how do you spot a tax refund scam, IRS imposter, or the many other ways criminals take advantage of tax season to steal from you? One way is to be aware of the different techniques that scammers use to steal your identity or pressure you into fraudulent tax returns. IRS imposter scams occur when someone contacts you pretending to work for the IRS. The imposter may contact you by phone, email, postal mail, or even a text message. The two most common types of scams you may encounter:
- Tax collection - The scammers will call or send a letter that you pay the amount immediately, usually with a prepaid debit card or wire transfer. They may even threaten to arrest you if you don’t pay.
- Verification – You receive an email or text message to verify personal information such as your social security number or bank account. The message may contain a link or button to “click here” that links you to a bogus form or website.
Concrete steps you can take to avoid scams:
- Beware of anyone calling you claiming to be from the IRS. The IRS will always initiates contact with you by mail before calling you about unpaid taxes.
- Ask the caller to provide their name, badge number, and callback number. Then call U.S. Treasury Inspector General for Tax Administration OIG (tigta.gov) at 1-800-366-4484 to find out if the caller is an IRS employee with a legitimate reason to contact you.
- Verify the number on the letter, form, or notice on the IRS website.
- Don’t give into threats. The IRS do not threaten to have police arrest you for not paying a bill.
- Don’t be pressured into paying money immediately or buying gift cards to pay a tax bill.
- Be leery of phone numbers displaying “IRS”. Let the call roll over to voicemail.
- DO NOT CLICK on any links/buttons in email or text messages to verify your information.
Be Aware, Be Safe.
S. Orlene Grant
President & CEO, JCGF.
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