The IRS warns of recent ‘Dirty Dozen’ tax scams
- Kim Thompson: Better Business Bureau
- March 19, 2019
- 1028
Every year the IRS compiles their “Dirty Dozen” list of common scams. These scams can affect taxpayers at any time of the year but strike more often during filing season as consumers finalize their tax returns.
Here are the first three such scams they are warning consumers about for the 2019 tax season:
Phishing schemes
The IRS continues to see new and evolving phishing schemes as criminals work to victimize taxpayers throughout the year. Whether through legitimate-looking emails with fake but convincing website-landing pages or social media approaches, perhaps using a shortened URL, the end goal is the same for these con artists: stealing personal information.
In one variation taxpayers are victimized by a creative scheme that involves their own bank account. After stealing personal data and filing fraudulent tax returns, criminals use taxpayers’ bank accounts to direct-deposit tax refunds. Thieves then use various tactics to reclaim the refund from the taxpayer including falsely claiming to be from a collection agency or the IRS. The IRS encourages taxpayers to review some basic tips if they see an unexpected deposit in their bank account. You can read more on the IRS website at www.bit.ly/falsedeposits.
Phone scams
Criminals make unsolicited calls, most often in the form of a “robo-call” (a text-to-speech recorded voicemail with instructions to call back a specific telephone number), but in some cases they are a real person. They leave voicemails with urgent callback requests claiming to be IRS officials.
These con artists may have some of the taxpayer’s information including their address, the last four digits of their Social Security number or other personal details. They demand the victim pay a bogus tax bill by sending cash through a wire transfer, prepaid debit card or gift card. The scammers threaten arrest, deportation or license revocation to intimidate and bully the victim into paying.
The phone scammers may alter or “spoof” their caller ID to make it look like the IRS or another agency is calling. The callers may use IRS employee titles and fake badge numbers to appear legitimate.
Tax identity theft
Despite a steep drop in tax-related identity theft in recent years, it still remains a top concern for consumers. Tax-related identity theft occurs when someone uses a stolen Social Security number or Individual Taxpayer Identification Number to file a fraudulent tax return claiming a refund. It also happens when someone uses your SSN to earn wages but gives you the tax bill.
Taxpayers should remember identity thieves constantly strive to find a scheme that works. Once their ruse begins to fail as taxpayers become aware of their ploys, they change tactics. Taxpayers and tax professionals must remain vigilant to the various scams and schemes used for data thefts.
Tips to avoid these scams:
File early. File your tax return as early as possible to avoid a scammer filing instead.
Be secure. Use a secure internet connection if you file electronically or mail your tax return directly from the post office.
Know the IRS. The IRS will not contact you by email, text or social media. If the IRS needs information, it will contact you by mail.
Know phishing. Learn to recognize and avoid phishing emails, threatening phone calls and texts from thieves posing as legitimate organizations. Do not click on links or download attachments from unknown or suspicious emails.
To see the remaining “Dirty Dozen” and find more tax-time tips and contact information, visit the IRS website at www.irs.gov/newsroom/dirty-dozen.
Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, report a scam with Scam Tracker, read tips, follow us on social media and more.