Tax Time Scams - Feb 2023
Tax season is here and it's time to be aware of tax related scams
IRS Imposter Scams
This is one of the most common scams. You might receive a phone call, e-mail, or text message from a person claiming to be from the IRS. This is an attempt to get your personal information or gain access to your return. According to the IRS, they will never:
- Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Call unexpectedly about a tax refund.
Tax Preparation Scams
These scams can include fake tax preparation services, websites, and software. The IRS reported that 92% of tax returns were filed online last year so staying vigilant about cybersecurity is more important than ever. While most of the largest tax return software companies have sophisticated security protocols, be sure to protect yourself by following these steps:
- Use secure passwords – The best practice is to create a unique password for each website, especially your financial service websites. Remember to password protect your wireless network at home too.
- Keep software updated – many software updates include security enhancements. Be sure to update your software, including your main operating system.
- Use reputable tax preparation services – don’t be afraid to ask your tax preparer about their security protocols. If they cannot easily provide them, find another service.
- Don’t take the bait – never respond to an unsolicited e-mail, phone call, or text requesting information about your taxes.