Don’t Let Fraudsters Cash In: Avoid Scams This Tax Season

Tax season is a stressful time for many, and scammers know how to exploit that pressure. By staying informed and vigilant, you can avoid falling prey to fraudsters who are looking to steal your personal information or money.

Tax scams come in many forms and knowing what to watch for can help you stay safe. Phishing emails often pose as the IRS, directing you to fake websites designed to steal personal information; remember, the IRS never contacts taxpayers via email. Similarly, fraudsters may call pretending to be IRS agents, “Scammers attempt to create a sense of urgency or develop a story that will compel you to disclose personal information such as your date of birth, social security number, driver’s license number, or even account usernames and passwords.”¹ Identity theft is another risk, where scammers use stolen Social Security numbers to file fraudulent returns. Protect yourself by filing early, using certified tax preparers, and staying alert.

“You can avoid falling for an IRS scam if you know how to spot these scammers and their tricks. This starts with understanding how the IRS contacts taxpayers. Here is a list of things a tax scammer will do but The IRS will never do:”¹

• Call, text, or email you and demand immediate payment.
• Demand payment without any chance to appeal or question the amount due.
• Threaten to have you arrested.
• The IRS does not accept payments by gift cards.

To protect yourself from tax scams, safeguard your Social Security number and sensitive information, and only use secure, trusted platforms when filing taxes online. Verify any suspicious messages by contacting the IRS directly through their official website or phone number. Regularly monitor your bank accounts, credit cards, and credit reports for unauthorized activity. If you suspect you’ve been targeted, report it to the IRS at irs.gov, file a report with the Federal Trade Commission at ftc.gov, and notify your financial institutions to secure your accounts.

By staying alert and taking proactive steps, you can protect yourself and your finances during tax season. Share this information with friends and family to spread awareness and keep everyone safe!

^{1. “Beware of IRS Tax Scams” Department of Insurance, Securities and Banking, https://disb.dc.gov/page/beware-irs-tax-scams}