In the fiscal year 2022, the IRS Criminal Investigation identified over $31 billion from tax and financial crimes. Now that the 2023 tax season is in full swing, so are the common scams that occur this time of year. We are faced with a higher risk of income tax scams, identity theft, and more. As we continue to see a rise in tax scams, taxpayers must remain aware of the latest methods used by criminals to avoid falling victim.
Tips to Avoid Scams During Tax Season
Spot phone scams and phishing emails.
Keep in mind that the IRS will typically mail taxpayers their bill first. They will not leave a threatening call or pre-recorded voicemail, ask for a check to a third party, or demand an immediate payment. Beware of emails that appear to come from a credible source, such as your bank or tax provider; never click on any links or attachments before confirming the source is reliable.
File your taxes early.
If the IRS has already received your information, the chance that a scammer will use your identity to file taxes for you or claim unemployment benefits is less likely. File your taxes as early as possible to reduce your risk.
Do your research when selecting a tax preparer.
To avoid suspicious tax preparers and scammers, ask for trusted recommendations from friends and family. You can also check a tax preparer’s credentials using the IRS’ Directory of Federal Tax Return Preparers.
Don’t fill out fake forms.
Scammers will often retrieve sensitive information by luring taxpayers into filling out fake tax forms. Threat actors are currently using a fake Form W-8BEN, a U.S. tax exemption document, to acquire personal information from taxpayers, such as their mother’s maiden name, passport number, PIN numbers, or passwords.
Look up form numbers on the IRS website to confirm the legitimacy of a tax form before filling it out.
Keep in mind, the IRS will never…
To learn more about how and when the IRS contacts taxpayers, click here.
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