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Tax filing season is here and scammers are trying to take advantage of unsuspecting taxpayers through a variety of ever-evolving scams looking for money and personal information.
The International Association of Better Business Bureaus warns about this tax scam usually arise from a phone call and usually fall into two categories.
In one, the alleged IRS agent tells the potential victim that they owe back taxes and tries to pressure them to pay with a prepaid debit card or wire transfer, threatening an arrest and fines for non-compliance.
The other popular tax scam tactic involves the scammer claiming to be issuing tax refunds and asking for personal information to send the potential victim their refund. That information can later be used for identity theft, and in the case of college students, they can become targets for claims that their “federal student taxes” have not been paid.
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The Better Business Bureau is warning taxpayers to be cautious if they are contacted by someone claiming to be from the IRS. (iStock)
The BBB report notes that tax scammers may engage in a number of tactics to appear legitimate. They can provide a fake badge number or name, and the caller ID can indicate the call is from Washington, DC, or use a serious “robocall” recording that sounds official.
Scammers may also send a follow-up email that uses IRS logos and colors, along with language that makes the email appear legitimate.
When scammers try to target victims, they may try to get the potential victim to take immediate action before they have a chance to ask questions or otherwise process the information the scammer throws at them.
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The IRS will not contact taxpayers by phone or email, and will not require immediate action, as taxpayers can appeal their decisions. (Kayla Bartkowski/Getty Images)
That’s also allowed demand payment via methods such as bank transfers, prepaid debit cards or other non-traditional methods, as these are more difficult to reverse or trace. The real IRS will never demand immediate payment, require a specific payment method, or ask for a credit or debit card number from the phone.
The BBB notes that the IRS allows taxpayers to question or appeal the amount of back taxes they owe.
Additionally, the IRS always initiates contact via email – not phone calls, text messages, emails or social media – so that taxpayers who are aware of this can be better prepared to counter a scammer’s attempts via phone or email. After the IRS sends a letter in the mail to a taxpayer with outstanding debts, they can contact them by phone.
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Tax scammers can use several methods to target taxpayers. (iStock)
The IRS has also warned taxpayers about a mailing scam that attempts to trick victims into thinking they have a tax refund.
Taxpayers receive a cardboard envelope with a fake letter claiming to be from the IRS regarding an unclaimed refund, requesting the taxpayer to provide personal and financial information.
BBB recommends that taxpayers who are unsure whether phone calls or other forms of contact are legitimately coming from the IRS should contact the agency directly to notify them of the claims and request so they can confirm whether it was actually the IRS that made the contact.
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It also suggests that you should file taxes as early as possible to avoid the threat of identity theft, as a scammer might try to use your information to file a false return.
