Tax season is stressful enough without scammers trying to sneak in and steal your information. Between forms, deadlines, and deductions, the last thing you need is fraudsters popping up in your inbox, on your phone, or on your social media feed. From fake IRS calls to “too good to be true” refund loans, these scammers know how to strike at the perfect moment. But don’t worry! We’ve got the rundown on the most common scams this tax season and how to spot them, so you can protect your money and your data.

Phishing Scams

Phishing scams – or smishing scams if they’re sent via text – are a big problem, especially when they’re disguised as messages from the IRS, your tax prep service, or even fake tax agencies. Whether they’re offering fake tax refunds, threatening criminal charges, or warning about “unusual activity” on your accounts, these sneaky messages are designed to get you to hand over your personal info or sneak ransomware onto your device. Remember to never, ever click on a link from an unsolicited email or text from the “IRS.” Spoiler alert: the IRS will never contact you this way. When in doubt, hit delete – no link is worth risking your data!

Fake Charity Scams

Scammers know how to tug at your heartstrings, especially in the wake of a crisis or natural disaster. They’ll set up fake charities that promise to help those in need, but in reality, they’re just after your money and personal information. Before clicking “donate,” always double-check that you’re giving to a legitimate charity. Make sure you’re visiting an official website, read reviews, and use the IRS’s tax-exempt tool to verify the organization. Not only will you be supporting the right cause, but you can also claim your donation on your taxes as long – as it’s the real deal! After all, your generosity deserves to go to the right place, not into the hands of scammers.

Fake Tax Preparers

Some scammers pose as tax preparers, tricking you into paying them while they steal your personal details or file fraudulent returns. They’ll reel you in with promises of low fees, quick filing, and maybe even a massive refund. But here’s the catch: these scammers may charge fees based on your refund or refuse to sign your return, leaving you stuck if things go wrong. A legitimate tax preparer, on the other hand, will always sign your return and will have a Preparer Tax Identification Number (PTIN). If they don’t, run the other way! To keep yourself safe, always research your preparer – check their reviews, confirm they have a PTIN, and never sign a return that isn’t complete.

IRS Impersonation Phone Scams

Ring, ring. It’s the fake IRS calling, and they’re threatening you with arrest or legal action unless you make an immediate payment. Of course, this is a classic scam designed to pressure you into giving up your personal information or hard-earned cash. Don’t fall for it! While these calls might look and sound legitimate – especially since scammers are experts at spoofing area codes and phone numbers – the IRS will never call you out of the blue demanding your Social Security number or threatening jail time. In fact, the IRS will typically contact you by mail first, not with an unexpected phone call. If you do get one of these calls, hang up and dial the IRS directly using the number listed on their official website to verify whether the call is real or fake.

Pandemic-Related Scams: Fake Offers for Stimulus Payments

Remember all those fake offers during the pandemic about Economic Impact Payments (EIPs) or “exclusive” COVID-related benefits? Well, those scams are still alive and well, hoping to catch you off guard. If you receive an unsolicited email or text claiming to be from the IRS, offering you some kind of relief or benefits, be sure to pause. If something sounds too good to be true, it probably is! These scammers are hoping you’ll take the bait and click on their malicious links so they can steal your personal and financial information. If you get one of these messages, it’s best not to engage – just forward it to the IRS at phishing@irs.gov, delete it, and continue on.

Social Media Scams

Social media platforms like TikTok are full of tax advice, but don’t be fooled – just because someone has a lot of followers doesn’t mean they know what they’re talking about! Scammers love using social media to spread misleading or outright false tax tips, like inflating W-2 forms to claim incorrect credits. Some might even create fake profiles to promote “secret” tax loopholes or lure you into clicking on phishing links designed to steal your info. Taking this kind of advice could land you in hot water with the IRS, leading to penalties or even criminal charges. If the advice isn’t coming from a qualified tax pro and can’t be verified by the IRS, it’s usually best to just keep scrolling.

Unsolicited Tax Advice and Refund Loans

Scammers love to promise “fast refunds” or “expert tax advice” during tax season. For instance, they might reach out claiming they can score you a larger refund, uncover hidden credits or deductions, or offer a refund loan that gets you paid faster than the IRS. Sounds tempting, right? But don’t be fooled – these offers are usually a trap. They come with hidden fees, risks of identity theft, and potential financial loss. Remember: if you didn’t ask for help, it’s likely a scam. This is especially true is the scammer is pressuring you for sensitive information, demanding upfront payment, or offering to take a slice of your refund for their “help.” If something doesn’t feel right, trust your gut and steer clear!

Identity Theft and Tax Refund Scams

One of the sneakiest and scariest tax scams out there is when scammers file fake returns in your name to steal your refund. They can use stolen data to file these fraudulent returns, and once your identity is compromised, it can take months (or even years!) to clean up the mess. The worst part? You might not even know it’s happened until you try to file your taxes and find out someone already beat you to it! To stay ahead of the game, use strong passwords, enable multi-factor authentication on accounts with sensitive info, and monitor your financial accounts so you can spot any suspicious activity. Plus, you can always file early to lower the chances of a scammer getting the jump on you!

What to Do if You Get Scammed

If you’ve fallen for a tax scam, don’t panic – there are steps you can take to protect yourself:

  1. Stop interacting with the scammer. Don’t send money or share personal information with them.
  2. Report the scam. Contact the IRS and report the scam online or directly through their website.
  3. Protect your identity. If your information has been compromised, consider getting an Identity Protection PIN (IP PIN) from the IRS or checking your credit report for signs of fraud.
  4. Notify your bank. Immediately contact your financial institutions to report any suspicious activity and take steps to safeguard your accounts.
  5. Report it to the FTC. File a report with the Federal Trade Commission at IdentityTheft.gov to get help with recovering from fraud.

Stay Smart, Stay Safe!

When it comes to tax season, you don’t need scammers causing you any extra headaches. Now that you’re armed with the knowledge to spot their most common tricks – from phishing scams to fake charities – you can keep your money and your personal information safe. Always remember: if something sounds too good to be true, then it probably is! Stay vigilant, trust your gut, and when in doubt, just hit delete. With a little awareness and caution, you can stay one step ahead this tax season. So, stay smart, stay safe – you’ve got this!