How To Protect Yourself From Tax Season Scams

Filing taxes is stressful enough. The last thing you want to be worried about is getting scammed out of your refund, bank account number, or social security number.

With tax scams on the rise, AARP Foundation has rounded up the top tax scams to watch out for and what you can do to keep your personal information and money safe.

Scam #1: Fake IRS messages

You’ll receive an email, text, or social media message asking you to urgently pay a fake tax bill. They may even threaten to arrest or deport you if you don’t comply.

How to stay safe:  Don’t respond. Block and report the message as spam. The IRS will only ever contact you through a letter in the mail through the U.S. postal service. The IRS will also never call you on the phone.

Scam #2: Bogus tax preparers

Promising a big refund, fake tax preparers prepare and file your return for a fee. But when your refund comes in, it goes to their bank account instead of yours. By the time you figure it out, the “tax preparer” is long gone.

Know the warning signs. They’re likely a scammer if they:

• Refuse to sign the return or enter a Preparer Taxpayer Identification Number (PTIN)
• Charge you based on a percentage of your refund
• Require payment in cash without providing a receipt
• Invent income to qualify their clients for tax credits
• Claim fake deductions to boost the size of the refund
• Ask you to sign a blank or incomplete tax form
• File the return without allowing you to review it

How to stay safe:  Work with a trusted tax preparer. By law, anyone who is paid to prepare (or assist in preparing federal tax returns) must have a valid Preparer Tax Identification Number. You can make sure who you’re working with is legitimate by looking them up in the IRS directory.

Scam #3: Identity theft

In addition to scamming you out of your refund, bogus tax preparers may steal your identity and use your social security number to commit more fraud.

You’ll know your identity has most likely been stolen if you:

• Can’t e-file because of a duplicate Social Security number
• Get a letter from the IRS asking about a suspicious return you didn’t file
• Get an IRS notice that an online account has been created in your name, and you didn’t create it
• Get an IRS notice that you owe additional taxes
• Learn IRS records indicate wages from an employer you didn’t work for
• Been assigned an Employer Identification Number (EIN) that you didn’t ask for

How to stay safe:  Filing early is one way to get ahead of the criminals — they’re fake return will get rejected if you’ve already filed. The IRS also recommends signing up for an Identity Protection Pin (IP PIN), a six-digit number that allows only you to file your return. Without this code, no one else can file a tax return using your Social Security number or Individual Taxpayer Identification Number. Here’s how to get an IP PIN.

As you can tell, staying one step ahead of the scammers is what will keep your personal information secure. Knowing the latest scams can give you the peace of mind you need while completing an already stressful item on your to-do list.

If you’ve been the victim of a tax scam, get advice on next steps and help moving forward. Call AARP Fraud Watch Network Helpline today. 1-877-908-3360