Tax Scams on the Rise

In the world today, all kinds of scams exist. Some scams are enacted by phone; others happen over email, in person, or through standard mail. All, however, are designed with the goal of taking your hard-earned money away from you and putting it in the hands of unscrupulous scammers.

Tax scams are one of the most common types of scams, and, as such, it’s important for you to be aware of some of the more prevalent ones. That way, if someone tries to pull one of these scams on you, you’ll be “in the know” and able to protect yourself.

Scam #1: The Call from the Aggressive ” IRS Agent”
If you ever get a phone call from someone claiming to be from the IRS, put your defenses up. There’s a good chance that the person on the other end of the phone isn’t an IRS agent at all but is instead a cold-hearted scammer.

With this scam, false “agents” will typically tell you that you owe money of some kind and threaten you with arrest, deportation, and other serious consequences if you don’t pay up immediately.
Whatever you do, don’t give these scammers any personal information and definitely don’t pay them any money! Real IRS agents would not behave in this manner and would contact you by official mail from the IRS first. If this happens to you, call the police as soon as possible to report it!

Scam #2: The Stolen Refund
Another horrible scam occurs when a thief files a tax return in your name and then takes your refund money! While you might think this crime would be hard to commit, most scammers can gain access to your refund with nothing more than your social security number.

As such, you’ll want to be extremely careful to keep your social security number private and secure. You’re also less likely to be victimized by this crime if you file your taxes early on in the tax season. That way, if scammers do target you, you’ll have already received your refund and they’ll be in a big trouble!

Scam #3: Fake Tax Preparers
This scam is scary, but it does happen. There are some people out there who claim to be professional accountants or tax preparers and who often seem totally legitimate- even charging fees for their services. However, these “professionals” can be scammers who are plotting to steal your money.
While anyone can be targeted by fake tax preparers, they often tend to go over the most vulnerable victims, such as those who don’t speak English well or who are elderly.

To avoid becoming a victim of this type of scam, only work with true, professional accountants! You should look through the IRS’ Federal Tax Return Preparer Directory to find legitimate, trustworthy tax preparers in your area.

Monday, February 22, 2016