TULSA, Okla. — Time is running out to file tax forms and experts warn to stay alert for last-minute tax scams.
Wanda told the Problem Solvers, “I received a phone call from someone who said he was with the IRS, to inform me someone had hacked her account, and stolen her refund. I knew I should not have waited so long to do my taxes. But before I gave him the information he was asking for, so they could track down the thief, I had a bad gut feeling and hung up.”
Kudos for that according to security and tax experts.
That’s one of the common schemes scammers try to pull, especially as the end of tax season comes down to the wire.
“Tax scams are one of the most popular forms of identity theft,” says Jack Caporal, a research analyst with Motley Fool Ascent, a financial website.
He said the IRS will never call, text, or email out of the blue about alleged issues with your taxes.
Never give out any information to anyone contacting that way, asking for information to complete a return, or so they can send the owed refund, or correct a return so the IRS won’t take legal action.
The crooks could use that information to actually steal the refund, or hack into a bank account, and steal identities. Those are phishing schemes designed to catch people off guard, and rip you off, especially as tax season ticks down.
Jack Caporal said, “The average person who’s a victim of a tax scam can lose up to $1,600, which is a significant amount of money.”
To prevent a fraudster from filing a fake return to steal refunds, experts recommend getting an IRS PIN, a personal identification number to protect your account. It’s the IRS version of two factor authentication.
Experts said it can give you a little more peace of mind, and can help you track your tax return throughout the entire process.
The IRS has several tips on protecting yourself and scammers, whether you’re still working on this years taxes, or as you eventually work on next years.
The IRS continues to see a barrage of email and text scams targeting taxpayers and others.
These schemes frequently peak during tax season but they continue throughout the year. Taxpayers face a wide variety of these scams and schemes.
And tax professionals, payroll providers and human resource departments remain favorite targets of email and text scams since they have sensitive personal and financial information. One common example remains the “new client” scam that can target tax pros and others.
That means taxpayers and tax professionals should be alert to fake communications posing as legitimate organizations in the tax and financial community, including the IRS and state tax agencies.
These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims to provide valuable personal and financial information that can lead to identity theft.
There are two main types:
- Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures the victims into the scam with a variety of ruses such as enticing victims with a phony tax refund or threatening them with false legal or criminal charges for tax fraud.
- Smishing: A text or smartphone SMS message where scammers often use alarming language such as, "Your account has now been put on hold," or "Unusual Activity Report," with a bogus "Solutions" link to restore the recipient's account. Unexpected tax refunds are another potential lure for scam artists.
- Never click on any unsolicited communication claiming to be the IRS as it may surreptitiously load malware. It may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.
In some cases, phishing emails may appear to come from a legitimate sender or organization that has had their email account credentials stolen.
Setting up two-factor or multi-factor authentication with their email provider can reduce the risk of individuals having their email account compromised.
Posing as a trusted organization, friend or family member remains a common way to target individuals and tax preparers for various scams.
Individuals should verify the identity of the sender by using another communication method, for instance, calling a number they independently know to be accurate, not the number provided in the email or text.
The IRS initiates most contacts through regular mail and will never initiate contact with taxpayers by email, text or social media regarding a bill or tax refund.
Individuals should never respond to tax-related phishing or smishing or click on the URL link. Instead, report all unsolicited email - including the full email headers - claiming to be from the IRS or an IRS-related function to phishing@irs.gov.
If someone experienced any monetary losses due to an IRS-related scam incident, they should report it to the Treasury Inspector General for Tax Administration (TIGTA), the Federal Trade Commission and the Internet Crime Complaint Center (IC3).
If a taxpayer receives an email claiming to be from the IRS that contains a request for personal information, taxes associated with a large investment, inheritance or lottery.
- Don't reply.
- Don't open any attachments. They can contain malicious code that may infect the computer or mobile phone.
- Don't click on any links. If a taxpayer inadvertently clicked on links in a suspicious email or website and entered confidential information, visit the IRS’ identity protection page.
- Send the full email headers or forward the email as-is to phishing@irs.gov. Don't forward screenshots or scanned images of emails because this removes valuable information.
- Delete the original email.
If a taxpayer receives a text claiming to be from the IRS that contains a request for personal information, taxes associated with a large investment, inheritance or lottery.
- Don't reply.
- Don't open any attachments. They can contain malicious code that may infect the computer or mobile phone.
- Don't click on any links. If a taxpayer clicked on links in a suspicious SMS and entered confidential information, they should visit Identity Theft Central.
- Report the message to 7726 (SPAM).
- Include both the Caller ID and the message body in an email and send to phishing@irs.gov. Copy the Caller ID from the message by pressing and holding on the body of the text message, then select Copy, paste into the email. If the taxpayer is unable to copy the Caller ID or message body, forward a screenshot of the message.
- Delete the original text.
- For more information see the IRS video on fake IRS-related text messages.
The Report phishing and online scams page at IRS.gov provides complete details. The Federal Communications Commission's Smartphone Security Checker is a useful tool against mobile security threats.
As part of the Dirty Dozen awareness effort regarding tax schemes and unscrupulous tax return preparers, the IRS urges individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.
To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242PDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.
Mail:
Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677 3405
Fax: 877-477-9135
Contact the Problem Solvers:
- 918-748-1502
- problemsolvers@kjrh.com
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