Ruthless Tax Scams

Every year the IRS criminal investigation division identifies the leading tax scams. Taxpayers need to be watchful for potential fake websites, emails or texts that may be attempts to steal your money or personal information. The IRS never initiates contact with taxpayers via email or telephone concerning tax bills, refunds or Economic Impact Payments. Here are six of the most frequent scams to watch out for:
Phishing Schemes: Fraudsters typically use keywords, such a COVID-19 to get personal account or identity information including passwords or account numbers. The latest phishing scams often use fear of COVID-19 to get taxpayers to provide the information they want.
Fake Charities: Phony websites use names similar to actual charities to trick victims into sending money or providing financial information. Sometimes they will state they are working for the IRS to help victims receive tax refunds or recover lost claims.
Threatening Impersonator Phone Calls: A scammer may threaten individuals with arrest, deportation, or license revocation if the victim does not pay a phony tax bill. The IRS never insists on immediate payment of tax bills, or threatens taxpayers, let alone demands financial information. These calls are often “robocalls.”
Social Media Scams: These use events like COVID-19 to get people to share personal information on the Internet. Fraudsters use their information for many types of scams, including impersonating someone’s family or friends.
Tax Refund Theft: Many of these include identity theft, in which fraudsters file false tax returns to divert funds to wrong addresses or bank accounts. Certain types of businesses have taken advantage of vulnerable people to divert payments from the IRS, including Economic Impact Payments, to addresses they control.
Fake Payments with Repayment Demands: A criminal steals a taxpayer’s personal data including Social Security or Taxpayer Identification number and bank account information. Then the scammer files a fake tax return and has it sent to the taxpayer’s account. The fraudster next calls the victim pretending to be an IRS agent and demands the money be returned immediately due to an error via a gift card or be faced with hefty penalties and interest.
If you receive an email or a fraudulent call claiming to be from the IRS that contains a request for personal information or demands a payment, email the IRS at phishing@irs.gov
Professional Tax Services is a locally owned provider serving over 3,500 local residents and businesses. For more information call 661-259-1967 or visit www.protaxservices.com. Through their complimentary EZ2 Thrive program, they provide unlimited free tax planning advice to their clients.