As tax-filing season approaches, it’s crucial to stay vigilant against scams that target taxpayers. These scams can lead to financial losses, identity theft, and a lot of stress. Here are the top scams to watch out for this tax-filing season and tips on how to prevent them.

1. Phishing Scams

Phishing scams are one of the most common tactics used by scammers during tax season. These scams typically involve fraudulent emails or websites that appear to be from the IRS or other legitimate organizations. The goal is to trick you into providing personal information, such as your Social Security number or bank account details.

How to Prevent Phishing Scams:

Be skeptical of unsolicited emails or messages claiming to be from the IRS. The IRS will never initiate contact via email, text messages, or social media.
Do not click on links or download attachments from unknown or suspicious sources.
Verify the sender’s email address and look for any inconsistencies or misspellings.
If in doubt, visit the official IRS website directly by typing the URL into your browser.

2. Phone Scams

Phone scams, also known as “vishing,” involve scammers posing as IRS agents or tax officials. They may use aggressive tactics, such as threats of arrest or legal action, to pressure you into making immediate payments or disclosing personal information.

How to Prevent Phone Scams:

Remember that the IRS will never call to demand immediate payment or ask for your credit or debit card information over the phone.
If you receive a suspicious call, do not engage with the caller. Instead, hang up and contact the IRS directly using the official phone number from their website.
Consider using a call-blocking service or app to filter out potential scam calls.

3. Tax Preparer Fraud

While most tax preparers are honest and professional, some unscrupulous individuals may engage in fraudulent activities. This can include inflating your refund, charging excessive fees, or stealing your personal information.

How to Prevent Tax Preparer Fraud:

Choose a reputable tax preparer with a valid Preparer Tax Identification Number (PTIN).
Check the preparer’s qualifications and reviews, and verify their credentials with the Better Business Bureau or other professional organizations.
Never sign a blank tax return or one that you have not thoroughly reviewed.
Ensure your refund is deposited into your own bank account, not the preparer’s account.

Additional Tips to Stay Safe During the Tax-Filing Season

Secure Your Personal Information: Keep your financial and personal information secure, both online and offline. Use strong, unique passwords for your accounts and enable two-factor authentication where possible.
Monitor Your Accounts: Regularly check your bank and credit card statements for any unusual activity. Report any suspicious transactions immediately.
Report Scams: If you encounter a tax scam, report it to the IRS and the Federal Trade Commission (FTC). This can help prevent others from falling victim to the same scam.

By staying informed and cautious, you can protect yourself from these common tax-filing season scams. Remember, the key to avoiding scams is to stay vigilant, verify information, and trust your instincts. If something seems off, it probably is.

Stay safe this tax season!