STPS

Everything You Need to Know to Avoid Tax Scams

Although tax scams can happen at any time, tax season is usually when they happen most frequently. To steal money and personal information, criminals use a variety of strategies, including texting, calling, and sending emails. In this article you will find important advice on defending yourself against tax scammers.

How to Spot a Scam:

Asking for Information Online:

Information is never requested by the IRS through text, email, or social media. Think of any online communication asking for information that appears to be from the IRS as fraud. Ignore and, if you can, report or block the scammers.

Demanding Payment Right Away:

A huge red flag is the insistence on immediate payment. The IRS typically does not make sudden payment demands over the phone without issuing a prior notice through mail. Furthermore, they provide an opportunity for questions before requiring payment.

Mandating Payment in a Specific Manner:

Fraudulent individuals may demand specific payment methods such as prepaid debit cards or wire transfers. The IRS, however, does not prescribe a particular payment method and allows you the flexibility to choose how you wish to make payments.

Requesting Credit or Debit Card Numbers by Telephone:

Credit or debit card information is never requested over the phone by the IRS. You should consider the request fraud if someone askes for these details.

Threatening Legal Action:

If threats of arrest are made for non-payment, it’s a scam. When taxes are not paid, the IRS does not threaten to arrest you. 

Common Scams:

1. Identity Theft:

Occurs when personal information is utilized without authorization. Identity thieves may file a false tax return by using the identity of a real taxpayer. 

2. Pervasive Phone Scams:

Scam calls claiming to be from the IRS, frequently with threats of prison or license suspension.

4. False Claims of “Free Money”:

To draw in victims, con artists acting as tax consultants make false claims of federal tax refunds.

3. Phishing:

Scammers trick victims into giving personal and financial information by sending spam emails or visiting fake web pages.

This image illustrates the concept of phishing scams with a computer monitor displaying an orange envelope with an email "@" symbol, being hooked by a phishing line. Surrounding the monitor are elements such as credit cards, coins, warning symbols, and dollar bills, emphasizing the financial risks of online scams.

What to Do if Scammed:

Over the Phone:

If you think a call is fraudulent, end the call and give the IRS a call at (800) 829-1040 to confirm. Report the call to the Treasury Inspector General for Tax Administration at (800) 366-4484 or http://www.tigta.gov if you are tax exempt.

Email:

Submit emails with suspicious content to [email protected]. Mark the original email as spam and delete it.

Text Message:

Treat text scams like email scams. Forward the text to the IRS at 202-552-1226, include the number in a separate message, and delete the original text.

Website:

If you find a suspicious website claiming to be the IRS, email the URL to [email protected] with “suspicious website” in the subject line. Report to the IRS

Protecting Personal Information:

Online:

Utilize up-to-date security software that includes file encryption, virus protection, and a firewall. Treat sensitive information carefully online, just like you would cash.

Offline:

Keep your Social Security card hidden. Old tax records should be stored safely, preferably in a locked safe. Get rid of, and shred, any papers you are not required to keep.

If Scammed:

1. Find out which information has been stolen.

2. Put a fraud alert in place and freeze your debit or credit card accounts.

3. Reset all of your online account passwords, and if you can, use multi-factor authentication.

Bottom Line:

It’s critical to identify typical strategies, comprehend frequent scams, and take proactive measures to protect your personal data. Since traditional mail is how the IRS normally communicates, any disruption should be cause for concern. Check suspicious correspondence by contacting the IRS directly. Stay informed with up to date safety tips when it comes to tax scams.

Written by Mike Ritzema

Before founding Superior Trucking Payroll Service, Mike was the CFO of a trucking company with 80 trucks and a thriving brokerage. This experience gave him the perspective that a payroll solution has to make the lives of the office people better.  All the solutions he has designed are to benefit everyone.  Our company mission is to help trucking families and that includes the company owners, the drivers, and the office.

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