Don’t Fall For These Tax Scams

For most filers, tax season only last a few months. For tax scammers though, it’s a year-round opportunity for fraud.

Despite countless warnings by both the IRS and taxpayer advocacy groups, the scammers find enough marks to come back for more.

Here are some of the more common scams to watch out for:

Phishing Attempts.  Scammers will contact you by email requesting that you provide personal information, often accompanied by the threat of being audited or arrested if you don’t comply. Don’t believe them. Scammers can use the information you provide to quickly empty your bank accounts, rack up your credit card debit and worse. The IRS never uses e-mail to contact taxpayers about tax issues.

Charitable Donations.  Many taxpayers know that charitable donations are deductible. And con artists know that you know. Before you make a donation, it's important to check that these organizations are legitimately registered with the IRS as tax-exempt non-profit organizations. Check at this IRS website to be sure.

Tax Preparers.  Fraudsters will sometimes target accountants and other tax professionals by sending out emails telling unsuspecting preparers that they need to update their information to keep their IRS certification current. The hope is that these preparers will provide them with usernames, passwords and EIN numbers that they can then use to get personal information from clients.

Taxes can be enough of a headache without having to worry about tax scams. Knowing the tactics scammers are using can help you avoid becoming their next victim. If you need more information, the IRS has several suggestions for taxpayers to help protect themselves.