Greg's Corner

Tax season scams have already started

By Greg Collier

This coming Monday, January 29th, is the first day you can file your income tax return. Scammers are aware of this, and will spend the next three months trying to steal from you using your tax return as bait. One report even states that scammers have already started sending out emails impersonating the IRS. The unsolicited emails state you can check the status of your return by clicking on a link. The link will more than likely take you to a website where you’ll be asked to enter your personal information in order to steal your identity. But, that isn’t the only tax scam you should be on the lookout for.

The IRS impersonation scam stands out as the most prevalent fraudulent activity. In this scheme, perpetrators pretend to be representatives of the IRS when contacting their targets. Usually, these fraudulent callers inform their victims that they are delinquent in their taxes and insist on an immediate payment. Alternatively, some scammers falsely claim that the target is owed a refund and request bank account information. It’s important to note that the IRS typically does not communicate with individuals over the phone regarding tax matters. Any issues with a tax return would be addressed through the mail.

During tax season, there’s an influx of transient tax preparers who may not have a reliable and long-term presence. If you plan to enlist the services of a professional to file your taxes, it’s crucial to thoroughly research the individual or company beforehand. Exercise caution if a tax preparer indicates an intention to close operations immediately after the filing deadline. In the event of an audit, having a tax preparer who can provide assistance is essential.

Additionally, be cautious of tax preparers who link their fees to your tax refund. Fees should be determined based on the complexity of your tax return, not the refund amount. Ensure that the fee structure aligns with the effort required to complete your tax filing accurately.

The most devastating tax scam involves scammers attempting to file a tax return using your identity. This underscores the importance of filing your return promptly. If a scammer successfully files a return in your name, you will likely receive a letter from the IRS indicating the receipt of duplicate returns. In the unfortunate event that you fall victim to this scam, it’s crucial to contact the IRS immediately.

Delaying your response can complicate the process of rectifying the situation and recovering your tax return. Swift action is essential to minimize the impact of identity-related tax scams. Stay vigilant, file your return as early as possible, and promptly address any suspicious activity with the IRS if you suspect fraudulent filings in your name.