Beware of Tax Scams: How to Protect Yourself This Tax Season
- by TeamFab
- Apr 7
- 4 min read
Updated: 3 days ago
Tax season can be stressful for many, and unfortunately, it’s also prime time for scammers to take advantage of people, especially seniors. Whether it’s a fake phone call from the IRS or an unsolicited email promising big tax refunds, scammers use various tactics to steal your money or personal information.
At United We Age, we want to help you navigate the tax season safely. Here’s how you can spot a tax scam, protect yourself, and know what to do if you’ve been scammed.
How to Spot a Tax Scam
1. Unsolicited Phone Calls or Emails
The IRS never contacts people by phone or email to request personal information or payments. If you receive an unsolicited phone call, email, or text message claiming to be from the IRS, it’s likely a scam.
Scammers may claim you owe back taxes and threaten immediate arrest or legal action if you don’t pay right away. The IRS does not demand immediate payment over the phone or ask for payment via prepaid gift cards.
2. Requests for Payment via Unusual Methods
Be cautious if you are asked to pay your taxes using gift cards, wire transfers, or cryptocurrency. The IRS only accepts payment through legitimate channels such as direct debit, checks, or credit/debit cards.
3. Fake Tax Preparer Scams
If someone offers to file your taxes for a very low fee or promises unusually large refunds, be careful. Scammers often target seniors by pretending to be legitimate tax preparers, only to steal personal information or charge hidden fees.
Always check the credentials of any tax preparer. Ensure they are licensed, such as an Enrolled Agent (EA), Certified Public Accountant (CPA), or attorney.
4. Phishing Scams
Phishing emails and websites try to trick you into giving up personal information like your Social Security number, bank details, or credit card info. These fake emails may look official, but they’re designed to steal your identity.
Never click on links in unsolicited emails, and always type the official website address (like IRS.gov) directly into your browser.
5. Promises of Refunds That Are Too Good to Be True
Scammers might advertise “free money” or promise a huge refund that sounds too good to be true. They often ask for your bank account number to “deposit” the money directly.
The IRS only processes refunds based on the information you report on your tax return.
How to Prevent Tax Scams
1. Keep Personal Information Secure
Never share personal information like your Social Security number, tax identification number, or banking details with anyone who contacts you unsolicited.
Use strong, unique passwords for any online tax preparation services or banking sites.
2. Use Trusted Tax Preparers
Look for tax preparers who have been licensed or accredited by the IRS. Check for credentials such as CPAs, EAs, or a Registered Tax Return Preparer (RTRP).
Avoid working with anyone who refuses to provide references or their credentials.
3. Stay Informed and Double-Check Your Documents
Make sure you understand any forms you’re signing, and don’t hesitate to ask questions if something doesn’t make sense.
Watch out for suspicious requests or unexpected notifications during the filing process. If something doesn’t seem right, trust your instincts.
4. File Taxes Early
Scammers may try to file a fraudulent return using your Social Security number before you have a chance to file. Filing early can help prevent this.
5. Secure Your Devices
Make sure your computer, smartphone, or tablet is secured with up-to-date antivirus software and encryption when filing your taxes online.
What to Do if You Are Scammed
If you believe you've fallen victim to a tax scam, act quickly to minimize damage. Here’s what to do:
1. Report the Scam to the IRS
If you receive a phishing email or phone call, report it to the IRS phishing email address (phishing@irs.gov).
If you’ve been tricked into paying a scammer, contact the IRS directly through their official website, or call them at 1-800-829-1040.
2. Contact the Federal Trade Commission (FTC)
The FTC is the U.S. government’s primary consumer protection agency. If you’ve been scammed, you can file a complaint with the FTC at ReportFraud.ftc.gov.
3. Notify Your Bank or Credit Card Company
If you’ve shared financial details with a scammer, contact your bank or credit card company immediately. Ask them to monitor for any suspicious activity, and freeze your account if necessary.
4. File a Police Report
If you believe you have been a victim of fraud, consider filing a report with your local police. While they may not always be able to recover your funds, a report creates a record that can be useful for future investigations.
5. Check Your Credit Report
Keep an eye on your credit report for any signs of fraudulent activity. You’re entitled to a free report once a year from the three major credit bureaus: Equifax, Experian, and TransUnion. Consider placing a fraud alert or credit freeze if you suspect your identity has been compromised.
Key Resources for Seniors Facing Tax Scams
AARP Fraud Watch Network: AARP offers free tools and resources to help seniors recognize and avoid scams, including tax fraud. Visit fraudwatchnetwork.org for more info.
IRS Scams (Phishing): For the latest IRS scam alerts and to report a scam, visit the IRS’s official website at IRS.gov.
Federal Trade Commission (FTC): Report a scam and find information on how to protect yourself at www.consumer.ftc.gov.
Local Senior Services: Reach out to local senior advocacy organizations, like the National Council on Aging (NCOA) or Area Agencies on Aging (AAA), for additional resources and help.
Stay Safe This Tax Season
Tax season doesn’t have to be a time of anxiety. By staying informed, using trusted services, and knowing what to look out for, you can protect yourself from tax scams and ensure that you’re handling your taxes safely.
At United We Age, we believe that with the right knowledge and precautions, you can manage your finances and protect yourself from fraud.
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