PROTECTING YOUR FINANCES
Tax season brings enough headaches on its own. We all know the feeling—staring at confusing forms, trying to remember whether to file jointly or separately or whose turn it is to claim the kids. But there’s an even bigger concern than the paperwork: protecting yourself from increasingly sophisticated tax scams.
The IRS has identified several emerging schemes targeting taxpayers this year. There’s the classic “fake IRS agent threatens jail time if you don’t pay now” scam, which continues making the rounds. Now, scammers have added a new twist, delivering “good news” about a large unclaimed refund. All they need is your bank details. Identity thieves have also stepped up their game, filing fraudulent returns and posing as tax professionals to steal sensitive information.
Don’t let these scammers win. Use these tips to protect your finances and personal information:
- File early, especially if you’re expecting a refund. Identity thieves try to beat you to it by submitting fake returns as early as February, hoping to pocket your refund before you notice.
- Ignore phone calls, emails, and texts from IRS posers. The real IRS always starts with a letter. If someone calls, emails, or texts you claiming to be from the IRS, it’s a scam—period. Even when you receive an official-looking letter, take a moment to verify it through the IRS website.
- Choose your tax preparer carefully. Before sharing any personal information, research their credentials on this IRS directory and the Better Business Bureau website. The AARP also offers 10 red flags that a tax preparer is a fraud, which include demanding cash payment and basing their fee on the amount of your refund.
- Know how the IRS operates. They do not accept gift cards as payment, nor will they require you to pay by wire transfer or cryptocurrency. And they certainly won’t call and ask for your credit card number.
It’s tough out there, so stay alert and trust your instincts.
If something doesn’t feel right, it probably isn’t. You can always report suspicious tax activity to the IRS at 800-366-4484 or the Federal Trade Commission at reportfraud.ftc.gov. Your financial security matters. Taking a few precautions can help keep you and your money safe this tax season.
