Scams to Watch Out for During Tax Season
John Connor | Loan Officer | Jamie Lane Branch
Tax season is a busy time for taxpayers and, unfortunately, for scammers as well.
Cybercriminals and fraudsters take advantage of the confusion and urgency surrounding tax filing to steal personal information, money, and even identities. To help you stay safe, we’ve compiled a list of the most common tax-related scams and how you can protect yourself.
1. IRS Impersonation Scams
Scammers may call, email, or text you claiming to be from the IRS, demanding immediate payment for unpaid taxes. They often use fear tactics, threatening legal action, arrest, or even deportation. The IRS does not contact you or take payment on social media.
How to protect yourself:
- The IRS never initiates first contact via phone, email, or text. Only through regular U.S. mail delivered by the U.S. Postal Service. To verify the IRS sent the letter or notice, you can search for it on IRS.gov. However, some letters are sent by one of the three authorized private collection agencies.
- Do not provide personal or financial information over the phone.
- Ask to have the IRS employees’ serial number and Report suspicious calls to the Treasury Inspector General for Tax Administration (TIGTA) or the IRS.
2. Phishing Emails and Fake IRS Websites
Cybercriminals send emails pretending to be from the IRS or tax preparation services, tricking recipients into clicking on malicious links or downloading harmful attachments.
How to protect yourself:
- Do not click on links or download attachments from unsolicited emails.
- Verify any IRS communication by visiting the official website: www.irs.gov.
- Use email spam filters and security software to detect phishing attempts.
“Filing and paying taxes can be stressful, so starting early on paperwork helps to lessen stress and chance that you might accidentally become a fraud victim.”
3. Fake Tax Refund Scams
Scammers file a fraudulent tax return using stolen personal information and then claim a refund under the victim’s name. Victims only realize this when they attempt to file their legitimate return.
How to protect yourself:
- File your taxes early to reduce the chances of fraud.
- Use strong, unique passwords for online tax accounts.
- Check your tax account for any unauthorized activity by creating an IRS Online Account.
4. Social Security Number (SSN) Theft
Fraudsters steal Social Security numbers to file fake tax returns or commit other identity fraud.
How to protect yourself:
- Never share your SSN unless necessary.
- Monitor your credit report and tax account for suspicious activity.
- Use an IRS Identity Protection PIN (IP PIN) for an extra layer of security.
What to Do If You’re a Victim of a Tax Scam
If you suspect tax fraud or identity theft, take the following steps immediately:
- Report the scam to the IRS through the IRS Impersonation Scam Reporting Form or by calling 1-800-366-4484.
- If your SSN has been stolen, complete IRS Form 14039 (Identity Theft Affidavit) and contact the Federal Trade Commission (FTC) at www.identitytheft.gov.
- Monitor your credit report for any unauthorized activity.
Scammers become more sophisticated each year, but staying informed and vigilant can help protect you from falling victim. Always verify IRS communications, secure your personal information, and file taxes early to reduce risk. By taking these precautions, you can ensure a safer, smoother tax season. At Midwest Bank, security is our top priority, so we want to ensure our clients are aware of potential scams. To see more resources on financial protection, click here.