How to help stay safe from tax scams

Tax season is a time of year when a significant amount of financial and personal information is in play. As you get your returns ready, it’s important to keep in mind that tax season also brings a surge of scammers looking to trick individuals into giving up that money and personal data.

What are tax scams?

Fraudsters are impersonating representatives from the Internal Revenue Service (IRS) and contacting individuals via a variety of channels, including phone calls, emails, text messages, and social media.

They may ask for personal information to “confirm” an identity, or in other cases they might even threaten legal action, arrest, or asset seizure unless immediate payment is made.

Red flags to look out for:

• Demands for immediate payment through money orders, gift cards, wire transfers, or cryptocurrencies.
• Use of aggressive language or threats to instill fear and urgency.
• Unsolicited calls, emails, text messages, or social media messages claiming to be from the IRS.
• Requests for personal information, such as Social Security Numbers, credit card numbers, bank account information, or passport numbers.

Tips to help protect yourself:

• Slow down. Avoid any “urgent” requests and be mindful of responding too quickly with personal or financial information.
• Learn how the IRS will and will not contact you.
• Don't be intimidated. Never respond to threatening callers or messages. Hang up and contact the IRS directly using official numbers.
• Remember: No government agency will demand immediate payment or threaten arrest over the phone.
• Never give out any personal information on unsolicited contact, especially non-publicly available information such as Social Security Numbers, account numbers, passwords, PINs, credit card numbers, or one-time passcodes (OTPs).
• Keep your address current with all government departments and agencies.
• Monitor your tax accounts with government websites regularly.
• Review emails and URLs carefully. Emails and websites can look like they are from trusted companies, but there may be small differences like one extra letter, a period, or a .net instead of .com.
• Protect your Social Security Number. Don't use this as a piece of ID and never reveal it to anyone unless you are certain the person asking for it is legally entitled to that information.

Reporting tax scams

Taxpayers who receive suspicious phone calls should:

• Submit a complaint to the U.S. Treasury Inspector General for Tax Administration.

Anyone who suspects that their personal or financial information has been compromised should also take these steps.

The bottom line

Tax season can be overwhelming, and the threat posed by fraudsters looking to gain access to funds or personal information can make the process even more stressful. To help protect yourself, adopt the tips and best practices in this article and stay alert to the signs of tax fraud both during tax season and year-round.