The new year brings a fresh start, but it also means tax season is approaching — and so are scams. Fraudsters are constantly finding ways to target taxpayers and preparers alike. It is important to stay vigilant and take steps to protect your personal information as you file your taxes.
Filing early is one way to help safeguard yourself since the IRS will only accept one tax return per Social Security number. While the IRS has made strides in preventing tax fraud, scammers continue to evolve. Here’s what you need to know to stay safe.
COMMON TAX FRAUD SCHEMES
Phishing Emails
Scammers may send emails claiming to be from the IRS or your local tax assessor, offering fake tax refunds or threatening penalties. Remember, the IRS primarily communicates through regular mail—not email.
Smishing/Text Scams
Fraudsters may send urgent text messages like “Your account is on hold” or “Unusual activity detected.” These messages often ask for immediate action, which is a clear red flag.
Red Flags to Watch For
- A W-2 from an unknown employer
- A tax transcript you didn’t request
- A notice about a new online account from your preparer (confirm this directly with your tax preparer).
Too-Good-to-Be-True Offers
Beware of tax preparers promising “guaranteed refunds” or “free tax preparation.” These could be attempts to steal your personal information.
Now that you know what to look out for, here are six tips to help you stay safe from tax fraud.
1. Don’t trust unsolicited messages.
If you receive an urgent email, text, or call demanding immediate attention, it’s likely fraudulent. The IRS states that it initiates most contact through U.S. mail.
2. Avoid clicking on suspicious links.
If you suspect fraud, don’t engage. Instead, forward the message to phishing@irs.gov to report it.
3. Opt for direct deposit.
To prevent a refund check from being stolen, choose direct deposit for a faster and safer option.
4. Verify unexpected requests for help.
If you receive a message from a friend or family member asking for help, confirm its legitimacy with a phone call.
5. Create an IRS personal account.
Setting up your own IRS account is quick and can help prevent scammers from using your information.
6. Be cautious with “urgent” offers.
Remember, legitimate organizations won’t pressure you into making snap decisions.
By following these tips, you can reduce the risk of falling victim to tax fraud scams. Stay alert, stay informed, and keep your personal information secure this tax season.
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your banker for further information on how you can help prevent fraud.
