As we approach the tax deadline, be on the lookout for IRS-related scams. Tax scams prey on stress and fear. Criminals know that filing taxes can be complicated and that stressed consumers may be more likely to fall for phishing scams in which scammers trick them into giving up their personal and financial information. They know, too, that many taxpayers are so frightened of the IRS that they’ll do just about anything, including sending them money or gift cards, to pay for the taxes they think they owe.
Avoid These Tax Scams to Keep your Identity Safe
1. Tax-related identity theft. Tax-related identity theft happens when scammers steal your personal information—then use it to file an income tax return in your name. You know you’ve fallen victim of tax-related identity theft when: you file your return online and the IRS rejects it, you file by mail and the IRS sends you a letter that your return has already been filed, the IRS notifies you that your online account has been created (which you never signed up for), or the IRS sends you a transcript by mail you never requested.
2. The gift card scam. Scammers will call you or leave a voicemail claiming you owe federal taxes and are in danger of being charged with criminal activity. They will demand you pay with gift cards, which they’ll use to buy merchandise from the stores. The IRS will never call you about taxes you owe or penalties you must pay, and they will never request gift cards.
3. The refund recalculation scam. With this scam, criminals will contact you either by email or text to say they recalculated your IRS refund and you’re due more money than originally thought. The official type of email might include the IRS logo. You’ll be asked to click on a link where you’ll be taken to a web page that asks for personal identification. Don’t fall for it. If the IRS did make a refund mistake, they would contact you through regular mail first, not email.
4. Stimulus payment scam. Some crooks will try to steal a victim’s personal and financial information in the hopes of sending them an “additional stimulus payment.” The federal government did send out stimulus payments to taxpayers but no new stimulus payments have gone out as of late 2021 and early 2022. If you do receive an email from the IRS stating that you are due a stimulus payment, it’s a scam.
5. The taxpayer advocate scam. Con artists will call taxpayers by using a phone number that looks like it’s coming from the IRS Taxpayer Advocate Service office. These calls can be made by a human or robocall that will ask for a return call. The scammer requests their personal information. Be wary of anyone randomly calling, who says they are from the IRS. Agents from the IRS do not contact taxpayers randomly. Taxpayers reach out to the service first. Only then do agents from the service contact them.
If you have been the victim of tax-related identity theft, here’s what to do next: Complete IRS Form 14039, Identity Theft Affidavit. This form allows you to report your suspicions to the IRS. Fill out the form, print it out, and attach it to your paper tax return. Mail the form and your return to the IRS, following the instructions on the form.
Resources:
Lifelock.com
IRS.gov
