During the tax period, most individuals are preoccupied with locating documents, completing forms, and hoping for a refund. However, while you are engrossed in submitting your returns promptly, scammers and criminals are actively striving to pilfer your valuable personal data.
Throughout tax season, a substantial amount of important personal and financial details are exchanged online, providing cybercriminals with the perfect opportunity to seize your confidential information, identity, and finances. As per the IRS, nearly 300,000 incidents of identity theft were reported in 2024, resulting in $5.5 billion in tax fraud. This is why annually, the IRS discloses its list of Dirty Dozen Tax Scams. Here are some of the primary scams you should be cautious about this tax season.
Noteworthy tax frauds to be wary of in 2025
- IRS Pretense: The most prevalent form of tax fraud commences with a phone call, text, or email. The scammer pretends to be from the IRS and asserts that you owe unpaid taxes. They demand instantaneous payment, using intimidations of arrest, business or driver’s license confiscation, or deportation. These cons frequently target vulnerable individuals, such as seniors or immigrants, capitalizing on the trepidation and uncertainty many people have regarding tax filings. To bypass these scams, keep in mind this crucial advice – the IRS will initially contact you by U.S. mail exclusively, never via phone, text, or email!
- Deceptive emails and text messages: Deception tactics can occur through emails, texts, or social media. Scammers dispatch messages attempting to deceive you into divulging sensitive information like W-2 forms, usernames, passwords, and account particulars. At times, they offer substantial refunds or threaten to levy fines. Refrain from clicking on links or opening attachments in unsolicited messages, as they could contain harmful software. You can learn how to report suspected phishing here.
- Impostor Tax Preparers: Ghost tax return preparers feign to be tax specialists, yet they lack legitimate certification. They might pledge substantial or swift refunds to secure your patronage. The impersonators often complete your tax return but then decline to sign it or include their IRS Preparer Tax Identification Number (PTIN), which is mandated by the law. Occasionally, they simply submit a deceitful return and abscond with your money, leaving you responsible for any false information and penalties.
- Refund fraud via identity theft: Fraudsters use pilfered data to file a deceptive electronic tax return in your name. They receive a refund, and you might not even realize you have been victimized until your own return is rejected. The optimal approach to evade tax refund fraud is to file your return promptly. If a criminal submits first, reclaiming your refund can be an arduous and protracted process.
Indicators of tax scams to be cautious of
- Unanticipated communications purporting to be from the IRS: The IRS will never request sensitive information or payments through email, phone, text, or social media.
- Pressures for immediate payments: The IRS will never press for instant payment – you will invariably have the chance to contest a tax debt.
- Menaces of legal repercussions or apprehension: The IRS will not intimidate you with legal actions or deportation.
- Requests for atypical payment methods: The IRS does not mandate specific payment methods, including in-person payments, prepaid debit cards, or gift cards.
- Promises of exorbitant refunds: If someone pledges an unusually extravagant refund, exercise caution. You could be entrapped into submitting a fraudulent return and end up accountable for any fictitious claims.
How to shield yourself
- Validate tax preparer qualifications: Engage a reliable tax preparer to compile your return.
- Utilize secure filing methods: Here are recommendations to safely file your tax return.
- Guard personal data: Handle your personal information as classified documents. Avoid carrying your Social Security card with you and safeguard your tax records and additional private data.
- Report dubious activities: Notify any suspected tax fraud here.
- Understand the IRS communication methods: Physical mail is the preferred mode of correspondence for the IRS. Always verify the authenticity of any IRS communications.
- Acquire antivirus protection for all your personal data: Webroot solutions barricade against tax-related phishing scams, along with viruses and malware aimed at filching your personal information.
- Implement identity protection:For tax season and beyond, Webroot Premium and Webroot Total Protection present comprehensive device and identity protection to safeguard your invaluable data from scammers. One subscription can defend your complete digital realm with dark web monitoring, swift alerts regarding deceitful activities, 24/7 customer assistance, and $1 million compensation for stolen funds and other expenses linked to identity theft.
- Back up your tax records: Generate digital and tangible backups of your tax documents. Store electronic duplicates in an encrypted cloud storage service and sustain physical copies in a secure location. Carbonite is an excellent solution. It encrypts your tax documents and all your other data in the cloud, offering uninterrupted backups and boundless storage.
Steps to follow if you fall prey to tax fraud
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Strategies for Selecting a Tax Return Preparer
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