Beware Tax Season Scams: Protect Yourself from Identity Theft

As tax season rolls around, there’s been an alarming increase in scam callers posing as IRS officials. With the advent of AI-voice programs, these scams have become more sophisticated and convincing. The IRS has flagged 2.4 million tax returns with refunds totaling approximately $13.8 billion for potential identity theft. The Better Business Bureau’s (BBB) Scam Tracker has also reported a median dollar loss of $2,100 due to tax scams in 2023.

Scammers often impersonate IRS officials, pressuring victims to make immediate back payments or provide personal information. They have even resorted to creating fake badge numbers and caller IDs that appear to be from the government. Phishing emails are also a common tactic, with scammers sending links to fake IRS websites designed to steal sensitive personal data.

There are several red flags to look out for. If you receive a letter from the IRS stating that they have already received a return in your name, or if you’re alerted that someone has filed for your return using your Social Security number, your identity may have been compromised. Similarly, if the IRS informs you that a new online account has been created in your name, it’s likely that your identity has been stolen.

To protect yourself during tax season, it’s recommended to file your taxes as early as possible. The IRS will never communicate via email, text, or social media, and will only contact you through physical mail or confirmed in-person visits. An Identity Protection PIN (IP-PIN) can also provide an extra layer of security.

If you receive a call or email asking for important tax information, hang up immediately and report the incident to the IRS, the Federal Communications Commission, and the BBB. In case of identity theft, complete IRS Form 14039, request a copy of the fraudulent tax return, alert national credit bureaus, and report the crime to the Federal Trade Commission and identitytheft.gov.

Using an identity theft protection service and installing good antivirus software can also help safeguard your personal information. Despite the surge in scams during tax season, it’s important to remember that scammers are active throughout the year. Stay vigilant and protect yourself from potential fraud.