Tax Fraud Is on the Rise
Tax fraud costs taxpayers billions of dollars each year, and unfortunately, it continues to rise. During tax season, scammers often pose as the IRS, tax preparers, or even financial institutions in an attempt to steal personal information, file fake tax returns, or claim refunds in someone else’s name.
The good news? Knowing what to watch for can make a big difference.
Common Red Flags of Tax Scams
Scammers tend to rely on urgency and fear. Here are some of the most common warning signs to look out for:
Unexpected contact
If someone reaches out to you by phone, text, email, or social media claiming to be the IRS and threatening legal action, that’s a red flag. The IRS does not initiate contact this way.
Urgent payment requests
Scammers often demand immediate payment and may insist on wire transfers, gift cards, or cryptocurrency. These payment methods are a major warning sign.
Suspicious links or attachments
Phishing emails may look official and include fake IRS logos, links, or attachments asking you to verify your information. Clicking these links can put your personal data at risk.
If something feels rushed, threatening, or just off, pause before responding.
Tips to Help Keep Your Information Safe
Taking a few proactive steps can go a long way in protecting yourself from tax fraud:
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File your tax return as early as possible to reduce the chance of someone filing fraudulently in your name
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Use strong, unique passwords and enable two-factor authentication on financial and tax-related accounts
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File your taxes using a secure, protected Wi-Fi network, not public Wi-Fi
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Shred old tax documents and paperwork you no longer need
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Work with trusted, reputable tax preparers and advisors
Being cautious now can help prevent a lot of stress later.
What to Do If You Suspect Tax Fraud
If you believe you’ve been targeted or your information has been compromised, it’s important to act quickly. You can report tax fraud directly to the IRS through their official reporting tools and resources.
If you ever have questions or concerns about suspicious activity related to your accounts, reach out to us. We’re here to help you protect your financial well-being and navigate situations like these with confidence.
Staying informed is one of the best ways to stay protected, especially during tax season.