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1.31.2023 / Fraud Education

Don’t Fall Victim to Tax Fraud

This tax season, the IRS wants taxpayers to be extra cautious and conscious of tax fraud. Criminals are growing more sophisticated in how they target victims, with SSN scams, robocalls, email phishing attacks, and even natural disaster money ploys. Don’t be a victim. Spot the scam! Here are five quick ways to avoid tax fraud:

Don’t engage. The IRS will never initiate contact through email, text, or social media. If you get an email from the “IRS”, it’s likely a trick to entice you to give up your private information. Only share your financial records with trusted sources and where possible, share your information in person rather than through any virtual file-sharing source (i.e. email, text, or social media). Protect yourself and your private information.

Trust your tax pros. The IRS is seeing an increase in tax professionals falling victim to identity theft. Always use a trusted tax service or professional when filing your returns. If you’re not careful, your federal and state income tax returns could be filed on someone else’s behalf!

Reject the call. Criminals posing as IRS representatives using fake names and titles are targeting and threatening taxpayers with bogus money demands over the phone. This is especially common with recent immigrants, many of who are told they will be arrested or deported if they don’t comply. If you owe money to the IRS, look for a letter, sometimes called a notice, from the IRS indicating action needed on your part.

Don’t let your guard down. While most taxpayers' filing deadline this year is April 18, scammers will continue to target unknowing taxpayers long after the tax season has ended. Be vigilant in guarding your privacy all year round.

Report the crime. If you suspect you’ve fallen victim to tax fraud or tax-related illegal activity, report it immediately. Tax fraud is a crime punishable by law. Click here for the IRS chart to determine the appropriate method on how to report tax fraud.

For more information on IRS Tax Fraud and Consumer Alerts, visit: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

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