It is tax season, and scammers are pulling out their best tricks, posing as the Internal Revenue Service (IRS) to convince you to hand over money or personal information.
The Better Business Bureau in Western Michigan wants consumers to watch for these types of scams this tax season:
Impersonation scams: Scammers pose as IRS “agents” saying you owe back taxes and pressure you to pay with a prepaid debit card or wire transfer. They also claim to be issuing you a refund and ask for personal information to complete that refund.
Email Phishing Scams: Scammers send bogus emails posing as the IRS with links to fake websites requesting an update to your IRS e-file immediately. The emails sometimes mention USA.gov and IRSgov (without a dot between “IRS” and “gov”). Don’t get scammed.
Mailing scams: In this scam, taxpayers receive an envelope from a delivery service, which includes a fake letter from the “IRS” about an unclaimed refund and asks for personal and financial information that scammers could use.
Tips to avoid tax scams:
The best way to avoid tax identity theft is to file your taxes as early as possible. File before a scammer can use your information to file a fake return.
Use an Identity Protection PIN (IP PIN) from the IRS before you file your return. This six-digit number confirms your identity and Social Security number. Visit the IRS for more information about the program. Read BBB’s tips about the IRS PIN.
Make sure you are on the REAL IRS website when filing your taxes electronically or inquiring for additional information.
The IRS will contact you by mail first, not by phone or email. Do not be deceived by caller ID, badge numbers, logos, or official-sounding language. Be wary if the caller is pushy. The real IRS will never demand immediate payment, require a specific form of payment, or ask for payment information over the phone.
When in doubt, contact the IRS to confirm any contact you receive is legitimate. If you’re unsure whether you’re talking with a scammer, stop communication with the individual and contact the IRS independently. Tell them what the individual has claimed and is asking for, and they should be able to confirm whether you’re talking with the real IRS or a scammer.
Other tips:
Only deal with trustworthy tax professionals and tax preparation services. Finding a trustworthy tax preparer may be a better option than filing yourself. But, not all tax preparers have the same level of experience and training. See our tips for finding the right tax preparer for you and always look for the BBB Seal – it’s The Sign of a Better Business!
If you are the victim of tax identity theft, contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov.
