Tax filing scams seek personal information for identity theft, BBB warns taxpayers
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Tax filing season is underway and fraudsters are looking to take advantage of unsuspecting taxpayers with a variety of scams that keep popping up asking for money and personal information.
The International Association of Better Business Bureaus warns against that tax scams it usually occurs on the phone and usually falls into two categories.
In another, i an IRS agent tells the would-be victim that he owes taxes and tries to pressure him to pay by prepaid debit card or over the phone, threatening arrest and fines for non-compliance.
Another popular tax scam tactic involves the scammer claiming to be getting a tax refund and asking for personal information in order to send the would-be victim their refund. That information may later be used for identity theft, and in the case of college students, they may be targeted with a claim that their “corporate student tax” has not been paid.
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The Better Business Bureau warns taxpayers to be cautious when contacted by someone claiming to be from the IRS. (Stock)
The BBB report notes that tax evaders it may engage in a few tricks to appear legitimate. They may provide a fake badge number or name, and caller ID may show that the call is from Washington, DC, or use sensitive “robocall” recordings that sound legitimate.
Scammers may also send a follow-up email that uses IRS logos and colors and language that makes the email appear legitimate.
When scammers try to target victims, they may try to push the would-be victim into action before they have a chance to ask questions or process the information the scammer is throwing at them.
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The IRS does not initiate contact with taxpayers by phone or email, and will not seek immediate action as taxpayers may appeal its decisions. (Kayla Bartkowski/Getty Images)
They might as well demand payment by using methods such as wire transfers, prepaid debit cards, or other non-traditional methods because those are not difficult to reverse or track. The real IRS will never demand immediate payment, require a specific payment method, or ask for a credit or debit card phone number.
The BBB notes that the IRS will allow taxpayers to question or appeal any amount of back taxes they owe.
Additionally, the IRS always initiates communications by mail – not by phone, text, emails or social media – so taxpayers who know that can be better prepared to thwart a scammer’s attempts by phone or email. After the IRS mails a letter to a taxpayer with outstanding debts, they may reach out by phone.
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Tax fraudsters may use a variety of methods to target taxpayers. (Stock)
The IRS has also warned taxpayers about a mailing scam that tries to trick victims into thinking that tax refund.
Taxpayers receive a cardboard envelope containing a fake letter purporting to be from the IRS regarding an unclaimed refund, asking the taxpayer to provide personal and financial information.
The BBB recommends that taxpayers who have doubts about whether phone calls or other communications from the IRS are legitimate should contact the agency directly to tell them about the claims and the request, which should allow them to verify whether the IRS was actually reaching out.
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It also suggests filing taxes as soon as possible to avoid the threat of identity theft, as a scammer may try to use your information to file a false return.
