Tips for Avoiding Tax Scams
Countless people fear the IRS, but tax agents are far less scary than real monsters targeting taxpayers. We’re talking about the criminals trying to trick you out of your tax return, identity, or both. To help you protect your finances, we’re breaking down the best ways to avoid tax scams.
Pay Attention to Return Addresses
Sending fake emails is a common tactic scammers use to get your money. The email might claim to be from the IRS, but a closer look at the return email address will reveal it’s actually from a different domain. For example, instead of “.gov,” it might end with “.irscustomerservice.com.” Some criminals are sophisticated enough to send realistic, error-free emails, so you can’t depend on spotting the trick just by reading the message.
Beware of Threats or Promises
What would you do if you received a message claiming you had to pay a late tax fee immediately, or the IRS would notify your boss? Fear and panic might set in, making you more likely to react without thinking twice. Scammers know of this and may try to capitalize on your stress.
Scams can also seem appealing. You could receive a text message or email promising a large tax refund if you provide personal information or pay a small processing fee. Be wary of these too-good-to-be-true offers. If you receive a suspicious message, contact the IRS directly to verify its authenticity.
Don't Click on Suspicious Links or Attachments
Another common strategy is to send messages with links or attachments that claim to be from the IRS. These may contain malware or phishing attempts, which can compromise your personal information and put you at risk for identity theft.
Make it a rule never to open links or attachments from unknown sources. If it’s a real message from the IRS, you can view it by accessing your official online IRS account.
Look Out for Ghost Tax Preparers
Is your tax return late? Or are you stressed about the size of an unpaid tax bill? Under these conditions, it is easier to become a target of a tax preparer scam. The ploy is simple. The fake tax preparer gathers your data and pretends to file your tax return or claims they can help reduce your bill.
Instead, they use your information for crimes like stealing funds from your bank account and opening credit cards in your name. They may even snag your refund.
Luckily, it only takes a little research to determine whether a tax preparer is credible. They should have an IRS preparer tax identification number and be listed in the IRS directory.
Avoid Oversharing on Social Media
One way to protect yourself from potential scams is to avoid oversharing personal information on social media platforms. Scammers frequently utilize social media to gather information about their targets, including their workplace, income level, and even tax filing status. This information can then be used to create more convincing scams.
To avoid this, it’s important to review your privacy settings and not make all of your personal information publicly available.
Utilize Security Software
Many common threats can be neutralized just by installing up-to-date security software on your devices. This includes anti-virus and anti-malware programs that detect and block malicious emails before they reach your inbox. It also includes firewalls that can prevent unauthorized access to your network.
Final Thoughts
Staying informed and vigilant is your best defense against tax scams. As cybercriminals become increasingly creative, you can stay one step ahead by recognizing red flags, verifying communications, and protecting your personal information. At Kondler & Associates, CPAs, we prioritize your financial security and peace of mind. If you ever need help navigating a suspicious situation, don’t hesitate to reach out to our trusted team.
