Tax season has begun and so have tax-related scams. Protect yourself by learning how to recognize and avoid the scams that target taxpayers. 

Phishing and Smishing

Be wary of any telephone, text, or email messages claiming to be from the IRS, especially those demanding immediate payment, or requesting your personal information, including your Social Security number, or username and password for e-filing. The IRS will never send an email requesting that you download, upload, or access your tax transcripts. 

These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information. Once scammers have this information, they can steal your identity. 

Tax Professional Impersonation and Third-Party Assistance

Victims are tempted by promises of bigger refunds. One of the red flags is that the tax preparer you're working with takes their fee based on the size of the refund. The scam becomes clear only when the impersonator refuses to sign the return, or include in the filing their IRS Preparer Tax Identification Number (PTIN), which is required by law.

Never sign a blank or incomplete return. In this scheme, the scammer steals your personal information, submits fraudulent tax returns in your name, and then claims your refund.

Promotion of Offers in Compromise (OIC) Program

Scammers are aggressively promoting the Offers in Compromise (OIC) program, which traditionally aids people who are unable to pay their federal tax debt in full. However, the scammers intentionally mislead and target individuals who don’t qualify. Getting caught up in this scam can cost you thousands of dollars. 

Misinformation and Bad Advice

Always consult a verified tax professional before taking tax advice from people on social media. Many people have been misled by advice that directs them to claim credits that they don't qualify for. For example, the Fuel Tax Credit is not available to most taxpayers. Unfortunately, the temptation to get a bigger refund, and the promotion of this credit as a “hack” or some kind of secret that you’d be foolish to leave on the table, leads taxpayers to take bad advice.

For more information and helpful tips, review Tax-Related Fraud and Scams. 

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