Tax season is here and fraudsters are using tax returns and taxes owed to scam consumers.

What are Common Tax Scams

Tax Refund Scams

These scams occur when fraudsters contact you by phone, email, or text, claiming you are owed a refund. Their goal is to trick you into providing personal information—such as your bank account number or Social Security number—which they can then use to steal your money or identity.

Tax Credit Scams

Fraudsters sometimes use social media to promote credits, such as clean energy or self-employment credits, claiming they can help you get a large refund. They often misrepresent the rules for claiming these credits, which can lead you to file incorrect tax returns, according to the Internal Revenue Service or IRS.

Tax Debt Relief Scams

Fraudsters may contact you while impersonating the IRS, claiming you owe taxes and must pay immediately to avoid jail time or other consequences. They often demand a fee or request your banking and personal information.

Another common scam involves people advertising on radio, social media, or other platforms, promising to settle your tax debt for a fee. In reality, you can often resolve tax debts directly with the IRS at www.irs.gov, without paying a third party.

Dishonest or “Ghost” Tax Professionals

Some scammers claim they will prepare your taxes correctly but end up filing incorrectly or not filing at all. The IRS warns against trusting tax preparers who:

• Don’t sign your tax return

• Don’t have a Preparer Tax Identification Number (PTIN)

• Deposit your refund into their own bank account

• Require cash payment or refuse to provide a receipt

• How to Avoid Tax Scams?

• Watch for these common scam warning signs from the Federal Trade Commission.

• You’re contacted about a supposed problem.

• You’re pressured to make a quick decision.

• You’re told exactly how to pay, such as:

  • Using gift cards and providing the numbers on the back

  • Wiring money

  • Sending cryptocurrency

  • Using a payment app to send money

• You’re asked to share personal information over the phone.

How to Stop Scams?

Avoid clicking on links in suspicious emails and text messages and hang up if you suspect a phone call is from a scammer. If you’re unsure, contact the organization directly through their official website, such as www.irs.gov.

Remember that honest organizations won’t rush you into making a decision or tell you to keep your communication a secret from your family, friends, or even your financial institution.

Legitimate organizations will never rush you into making a decision or ask you to keep your communication a secret from family, friends, or your financial institution. If you receive a call, text, or email asking for money or personal information, simply do not respond. Never trust anyone who insists you pay with a gift card, wire transfer, cryptocurrency, or payment app.

We are here to help—if you have questions about suspicious activity, fraud, or protecting your accounts, don’t hesitate to contact us.