It’s Tax Season – Here are Some Scams to be Aware Of

You’ve probably heard of “Slam the Scam,” an initiative by the Social Security Administration (SSA) and the IRS to inform the public about scammers. The IRS has augmented this advice with their “Dirty Dozen,” 12 tax season scams to watch out for over the coming weeks.

Tax season is rife with scams ranging from phishing to misinformation to AI-powered impersonation. This guide is here to help you avoid some of the most prolific and dangerous tax season scams.

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Learn about three of the most popular tax scams criminals try to pull off, and how to avoid them.

Why Are There So Many Scams During Tax Season?

Tax season scams are so common at this time of year because of the rush to complete taxes accurately by the relevant deadlines. Scammers play on the fear and panic surrounding taxes by impersonating authorities to deliberately frighten individuals and business owners.

Criminals perpetrate scams by:

Creating a false sense of urgency
Making individuals believe incorrect information about taxes
Tricking individuals into sharing false information
Stealing the identity of taxpayers

Remember, the IRS will never contact you by email or phone to ask for money.

Scam No. 1: IRS Impersonation

One of the top tax season scams is criminals impersonating IRS officials. Official-looking credentials may be sent via email, such as a scan of an IRS ID card. Real IRS officials will never confirm their identity this way.

When individuals believe they are communicating with the real IRS, they may be tricked into:

Revealing account credentials
Paying “overdue amounts”
Sharing financial information

Never open an email from the IRS, as it is most likely fake and may even contain malware. Even if you do open the email, never click a link and never enter your tax account credentials.

Scam No. 2: AI-Powered Robocalls

AI has become more sophisticated and can sound like a real human voice. AI robocalls target thousands of people, leaving messages demanding immediate payment. The IRS will generally only call you after several unsuccessful attempts to contact you by mail. The IRS will also never ask for payment in the form of gift cards, prepaid debit cards, or a wire transfer of money. If you have had no previous contact with the IRS, hang up and report the scam: Report fraud | Internal Revenue Service

Scam No. 3: Charity Tax Scams

Fake charities scam thousands of dollars out of hard-working taxpayers every year, sometimes putting genuine taxpayers into serious financial trouble. You may be able to claim deductions on your federal tax return due to charitable payments, but if those charities are found to be fraudulent, you may also be liable for creating a falsified tax return, even though you were scammed. Helpfully, the IRS provides an online list of current tax-exempt organizations, so you can quickly check whether the charity or non-profit you’re supporting is genuine or not.

Sign up for Scam Detector’s Scam Alerts for the latest updates on scams during tax seasons and beyond. The more you know, the more alert you can be to malicious actors trying to take advantage of you during stressful financial times.

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