Tax season also means the season for tax scam artists who can’t wait to get their dirty hands on your tax refund. Be smart and don’t let your hard-earned money get stolen by these rip-off artists and scammers.
These people are highly skilled with what they do—stealing other people’s money in various methods you wouldn’t even think suspicious at first. Protect your money; get in the know of the latest tax scams and ways to avoid it.
This is the number one scam people fall for and scammers try out on taxpayers; it’s also on the top list of the IRS—stealing your personal information.
Identity thieves would steal your Social Security number and other personal information useful to file a tax return under your name. Chances are, victims of this scam only discovers about the stealing after they file for their real tax return and the IRS would inform them they’d already filed.
This can be avoided by protecting your personal and vulnerable information and not giving it away willy nilly to anyone. Do not just give these critical information to a tax professional who isn’t licensed ar a certified advisor. Know who to hire and find for a legitimate and credible service.
Tax con artists have raised their game. From phone calls, now they set-up websites and emails designed and mirrored exactly like the official IRS site. Emails are also made to look professional and linked with the IRS.
The scam works in way where the “agency” would send you an email instructing you to update your IRS e-file. Fraudulent links will then record the tax payer’s username and password and other identification details. Tax professionals aren’t safe from this either as they are also targets of this specific scam.
If and when you receive a similar email, do not click on any links and ignore it. Report the recipient to the IRS.
Fake tax preparer
A tax preparer promises you a large sum of refunds that seems too suspicious? Well, if you lack knowledge in basic tax filing and return, you might fall prey on this bogus.
The usual victims of this scam are those who speak little to no English and have no idea how to file their taxes. The scammers would then deduct a huge amount from your return before they give you the rest. They also would not give a copy of the tax return.
Make sure you choose a legitimate tax preparer. Look for someone who holds a license and is a certified advisor. Ask for their proof of income and eligibility for credits and deductions. Also note they should provide you their IRS Preparer Tax Identification Number for credibility. And most importantly, they should sign your tax return as the preparer and they should provide you a copy of it.
IRS fraud calls
Picture this: You’re at home preparing your meal when you get a call from someone claiming to be from the IRS and demands you to pay off what you owe thru wire transfer.
Another bogus would be someone claiming from the IRS would call you to confirm your tax return information and verify some details such as your Social Security number, credit card and bank information. Odd and suspicious, yes. Don’t fall for the scam.
These scammers and frauds go far lengths to trick people into giving them money, so far as to exploit and mock charitable organizations and use real problems (e.e. natural disasters, etc.).
They do their research thoroughly and build up websites mirroring real charities. They use all mediums to reach out to you from emails to phone calls to get you to donate to them. To see if the organization is real, go to the IRS website and see for yourself.
Have you ever been victimized by these tax con artists? Share us your story—leave a comment below!
About Chie Suarez
Chie is a daytime writer for Depreciator – Tax Depreciation Schedule, a company dedicated completely to Tax Depreciation Schedules that aids the Australian property market.
October 10, 2016