Many people know taxes as something inevitable, but regretfully, scammers work wherever people experience stress — and for many, tax season is a stressful time indeed. Regardless, read the following guide to discover the most well-known tax scams and ways to keep your money safe.
Techniques of the Tax Scam Cybercriminals
Current examples of scammers and their tricks include emails, phone calls, and impostors like fake tax collectors. In order not to be a prey to any of these tricks, it is wise to be familiar with these tactics of tax scams.
- Unsolicited emails or phone calls: Beware of an e-mail message that is supposedly from the ‘Internal Revenue Service.’ True communication from the Internal Revenue Service starts by using a letter that is delivered to your mailbox.
- Request for personal information: Do not trust any incoming email or phone call asking for Account Numbers, Social Security numbers, credit card numbers, or passwords.
Understanding of everyday tax frauds
Tax scams come in many forms. The following sections present the different scams you should know in order to avoid them.
1. Phishing Scams
These are scenarios in which fraudsters try to obtain your personal details. One common type of cyber criminals are fake representatives of some organization, for instance, IRS, who sends email, a text message.
Do not respond to emails or text messages requesting your identification number and/or guiding you to a ‘new’ website.
Check websites twice – imitating links of genuine-looking organizations is a common trick of scammers.
If you remain in doubt about the authenticity of a communication that is allegedly from an organization of interest to you, the best thing to do to verify the authenticity of the communication is to contact the official representatives of the organization through their website or number.
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2. Fake Charities
Fraudsters may use the natural disasters or any other incidents which attract large sympathy to defraud people pretending to be collecting funds to support victims. Avoid donating to such charities, they are fake.
- Do your homework when contributing to a charity.
It is advisable to seek charities in the IRS’s Tax Exempt Organization Search feature.
No aggressive fundraising techniques or appeals to emotions such as crying or otherwise that push for a donation be used.
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3. Tax Return Preparer Fraud
There are unethical tax preparers who may quote high charges or even perpetrate an imitation to con the Internal Revenue Service or steal your identity. One should be very careful when hiring the services of a tax preparer.
Implementation should be avoided when preparers demand large amounts of money before the preparation process or when they promise huge refunds.
- Look for preparers who use a Preparer Tax Identification Number (PTIN) and, where it is necessary in your state, a license.
In this case the last step that you should take is to look at your file after preparation for tax return and signing.
4. Identity Theft
This is when an identity thief uses your Social Security number to file a tax return in your name and under false pretenses, more often to claim a refund. Prevent identity theft as a health accident by tracking your filed taxes and your financial records.
Avoid carrying your Social Security card and other important papers with your every outing.
This is because; once fraudsters have your details, the best way to defeat them is by filing your taxes as early as possible.
– Always check your banking statements and credit cards for any irregularity.
What If You Are a Victim of Tax Scams
In case you have already become a victim of a tax scam, it is critical to take the necessary and appropriate steps to reduce the impact of that scam.
- Contact the IRS: Inform them using their website or by calling the Identity Protection Specialized Unit on 1-800-908-4490.
- File a police report: Contact the police, especially if you have provided personal details or your money to the con artist.
- Monitor your accounts: Monitor recent statements of your bank accounts, credit cards, and other valuable financial assets for any suspicious transactions.
Do Not Leave Out on Information and Safety
The best way to guard yourself against them individually is to know what they are and learn the tricks common to most tax scams. It is also good to be informed on existing tax related schemes and be observant on your financial accounts or any peculiar activities.
Let’s starts with this reminder, the IRS won’t EVER reach out to you by e-mail, phone call, or text, and they will never intimidate you with anything like legal actions or demanded private information. As for all other calls that claim to be from the IRS, do not believe anything that you are being told and do not give any of your personal information to the callers.
Today it is possible to protect oneself from scammers and stay calm about the upcoming changes in taxes with proper knowledge and careful attention. Click here for the source
