Watch out for these 6 common tax season scams.
Con artists frequently target military personnel, so be on the lookout for these common types of fraud.
Scammers are always out, especially around tax season.
As the deadline for filing approaches, so do tax-time swindles, ranging from high-tech identity theft to tried-and-true con jobs. There are many scams out there, and each year, the IRS publishes a long list of what they call the “Dirty Dozen.”See note1 While the Dirty Dozen represents the worst of the worst, here are common tax scams to know and avoid.
1. Phishing
Con artists use unsolicited email and fake websites to lure potential victims into divulging personal information that will then be used to commit identity theft and fraud. Be leery of unexpected emails from the IRS promising refunds or threatening to collect, IRS officials say. They're fake — the IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.See note1 Report such suspicious email to phishing@irs.gov.See note1
2. Verification requests
Don't be fooled by scammers asking you to verify your W-2 or personal information. Some may ask you to upload a picture of your forms. The only time that the IRS would request ID verification would be if they were concerned about a suspicious tax return with a real taxpayer's name or Social Security number. lf that's the case, they would generally send a Letter 507IC — check the upper corner for the number — in the mail and ask you to verify your identity using the Identity Verification Service (Open in New Window).See note1
3. Phone scams
Scammers impersonating IRS agents may make aggressive or threatening calls demanding money or offering a refund. Sometimes they even alter their caller ID information to appear as if they're calling from an IRS office. But that's not how the IRS does business, according to officials. The first IRS contact with taxpayers is usually via mail.
4. Inflated refund claims
Beware of tax preparers who ask you to sign a blank tax refund, promise big refunds before looking at your records or charge fees based on a percentage of your refund. These scammers may file a false return in your name and take your refund. The IRS offers tips for choosing a preparer.See note1
5. Fake charities
After disasters, it's common for scammers to impersonate charities. Some even contact victims, claiming to be with the IRS. These groups often have names similar to legitimate organizations. Don't give out personal financial information or Social Security numbers. And don't give or send cash. You can look up legitimate charities through the IRS (Open in New Window).See note1
6. Identity theft
One of the most common identity theft scams involves filing tax returns using stolen Social Security numbers. Protect your personal data, check your credit report annually and review your Social Security Administration earnings statement each year to make sure you haven't been targeted.
For more information, check out the IRS section on ID theft (Open in New Window).See note1