Tips on Tax Season Scams
It’s that time of year again - tax deadlines are starting to loom, and many of us are working hard to get all our tax documents in order. Did you know that this is also the time of year that many identities get stolen and tax returns get fraudulently filed? In fact, the IRS estimated that more than $10 billion in tax fraud and financial crimes occurred last year, with many cases happening during tax season. It can happen to anyone, so remain diligent! Criminals will use email and telephone scams to trick taxpayers into revealing valuable information. There are many things that can help prevent becoming a victim of this type of crime.
The first line of defense starts with you. In recent years, many people have fallen victim to tax scams and bogus IRS communication through telephone calls, e-mails, and even regular mail. It's important to know that the IRS DOES NOT initiate contact with a taxpayer by email or through social media. It is also important to know that they will NOT call you to do any of the following:
When they need to contact taxpayers, the IRS will usually initiate contact with a letter delivered by the USPS explaining information related to their contact. They may also call or directly visit, and will verify their identity if reaching out by these means.
There are normally four (4) different types of tax fraud:
Phishing:
What to do if you become a victim of tax fraud:
Be Safe!
- Officer Terry Mancusi
The first line of defense starts with you. In recent years, many people have fallen victim to tax scams and bogus IRS communication through telephone calls, e-mails, and even regular mail. It's important to know that the IRS DOES NOT initiate contact with a taxpayer by email or through social media. It is also important to know that they will NOT call you to do any of the following:
- Ask you to purchase Google Play Cards/Apple Cards/any other kind of gift card
- Ask for your credit/debit card number
- Ask you to verify your Social Security Number (SSN)
- Threaten taxpayers with a lawsuit or arrest due to nonpayment, or otherwise demand immediate payment
When they need to contact taxpayers, the IRS will usually initiate contact with a letter delivered by the USPS explaining information related to their contact. They may also call or directly visit, and will verify their identity if reaching out by these means.
There are normally four (4) different types of tax fraud:
Phishing:
- Phishing occurs when fraudsters send taxpayers fake emails or website links to trick would-be victims into sharing personal data. A key point to remember from the IRS itself: “The IRS doesn't initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords, or similar access information for credit cards, banks, or other financial accounts.”
- Cyberthieves often impersonate IRS agents via telephone to steal personal information. In recent years, the IRS has reported a rise in such cases. The agency says it will never call to demand immediate payment, nor will the IRS call about taxes you owe without first having mailed you a bill.
- Tax preparer fraud occurs when tax clients receive emails that appear to be from their tax professional asking them to update their online accounts. The emails come from criminals, hoping to trick unsuspecting victims into providing such information as account passwords, Social Security numbers, bank account numbers, and credit card numbers, all of which can make the taxpayer a victim of identity theft.
- A particularly onerous form of tax fraud occurs when an identity thief visits a home (sometimes targeting an elderly resident) and claims to be an IRS agent. While IRS agents visit homes and businesses, they carry picture IDs and will try to contact you before visiting. Don’t let anyone inside your home unless you’re satisfied they are who they say they are.
- If you receive a call, email, or mail from someone claiming to be from the IRS, NEVER give out any of your personal information over the telephone, and HANG UP immediately!
- If you receive something in the mail that you are uncertain is official communication from the IRS, you can verify its legitimacy at www.irs.gov/individuals/understanding-your-irs-notice-or-letter
- If you determine that you received fraudulent correspondence, then you should report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at www.treasury.gov and email phishing@irs.gov, and place “IRS Scam” in the subject line. You can also call the IRS at 1-800-829-1040.
What to do if you become a victim of tax fraud:
- Be sure to submit a paper return with any payments that you might have. Just because your e-filed return was rejected does not mean you do not have to file a tax return. Fill out and attach Form 14039, Identity Theft Affidavit with your paper return, then file a police report with your local law enforcement agency.
- File a report with the Federal Trade Commission at IdentityTheft.gov. Request a copy of the fraudulent tax return, by using Form 4506-F with the IRS.
- Check your credit report and account statements. Make sure no one has charged anything to your credit card accounts or opened up new accounts. Consider changing passwords to online accounts and deleting your credit card information from online shopping sites
- Place a credit freeze on your accounts. Call the three (3) major credit bureaus - Experian, TransUnion, and Equifax, and ask that your credit be frozen. That way, no one can request new credit in your name.
- Request a PIN for tax filing. You can add an extra layer of protection to your tax filing if you use an IRS-provided personal identification number. You can request a six-digit IP PIN if the IRS has invited you via mail to opt-in.
Be Safe!
- Officer Terry Mancusi