Tax scams are growing increasingly prevalent. They are becoming more sophisticated every day. No scam relies on logic. Instead, scammers use emotion to make you vulnerable, and once you are, they will take you for all they can.
Tax scams can target anyone, regardless of their financial situation. More and more people fall for scams of every kind every day, giving bad actors access to their personal and financial information. Therefore, it is essential to know what to look out for.
If you have fallen for any of these, do not feel ashamed. These scams are designed to fool people. Sometimes, they work. Instead, seek help immediately by reporting the scammer to your local police department.
Common Tax Scams
IRS Impersonation Scams
The scammer poses as an IRS official and contacts taxpayers via phone, email, or mail, demanding immediate payment for taxes. They often use threats of arrest, deportation, or license revocation.
What to do: The IRS will never call you to demand immediate payment. If you receive such a call, hang up immediately and report it to the Treasury Inspector General for Tax Administration (TIGTA). The IRS almost exclusively communicates via written communication. Furthermore, a case with the IRS rarely grows so severe that they will imprison you or forcefully take your property.
Refund Scams
The scammer contacts the victim, usually by phone, claiming to be from a retailer or online platform. They inform the victim of an unauthorized purchase and offer a refund. The scammer then requests personal information or remote access to the victim’s computer to process the refund. In some cases, the scammer claims to have refunded too much money and asks the victim to return the excess amount, often via wire transfer or gift cards.
What to do: Do not provide personal information or remote access to your computer to unsolicited callers. Verify the legitimacy of the call by contacting the company directly using official contact information.
Phishing Scams
Fraudulent emails or websites trick recipients into providing personal information, such as Social Security numbers, credit card details, and passwords. These scams often appear as legitimate communications from financial institutions or the IRS.
What to do: Do not click on links or download attachments from unknown or suspicious emails. Always verify the sender’s identity.
Tech Support Scams
The scammer pretends to be tech support from well-known companies, convincing victims that their computers are infected with viruses or malware. They gain remote access to the victim’s computer and steal personal information or install malicious software.
What to do: Never grant unknown individuals remote access to your computer. Contact the company directly using official contact information.
Tax-Related Identity Theft
Scammers use stolen personal information to file fraudulent tax returns and claim refunds. Victims usually discover the scam when they try to file their legitimate tax return and find that one has already been filed in their name.
What to do: File your tax return as early as possible. If you suspect identity theft, contact the IRS immediately.
If you receive any communication claiming to be from the IRS or another tax authority, do not respond or provide any personal information. Instead, reach out to a tax attorney or CPA for verification and assistance.
There is nothing to be ashamed of if you find yourself in a tax controversy. There are all kinds of situations where honest taxpayers might find themselves relying on the wrong people or misunderstanding what the law requires of them. Do not let embarrassment prevent you from asking for help and guidance regarding tax issues, be they real or the fictional creations of scammers. We here at J. L. Williamson Law Group will be happy to schedule a free consultation to discuss your options.
Your security and peace of mind are our top priorities. By staying informed and cautious, we can work together and prevent these scams from affecting you and your family.
