This article highlights common tax scams such as identity theft, fake calls, payment fraud via gift cards, phishing, and fake tax preparers. It offers essential tips to protect your financial information, ensuring you recognize and avoid fraud attempts. Stay vigilant to safeguard your refunds and personal data. Visit our resources for more tax safety advice and updates on financial security.

Stay Alert: Recognize and Avoid Common Tax Fraud Tactics

Identity Theft
Fraudsters may use stolen personal data to file phony tax returns and claim illegitimate refunds. If targeted, promptly notify the IRS and set up a fraud alert with credit bureaus.

 

Suspicious Phone Calls
Scammers pretend to be IRS officials, knowing details like your name, mother's maiden name, or the last digits of your SSN. They may threaten legal action or fines, pressuring you to make quick payments over the phone.

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Related Reading: 22 Overlooked Tax Deductions

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Payment Using Gift Cards
Some fraudsters claim to be IRS officers, stating your notice was undelivered and demand immediate payment. Instead of sharing personal details, they ask for prepaid gift cards. Remember, the IRS does not accept payments through gift cards.

Phishing for Information
You may get fake emails or calls claiming to be from IRS or tax software providers, requesting verification of your details. The goal is to steal info like SSNs, birthdays, or employment data to file false returns and divert refunds.

Fraudulent Tax Preparation Services
Dishonest tax preparers may promise maximum refunds but may use false data, such as fake dependents or ineligible credits, and charge a percentage of your refund. Verify their credentials and review all documents before signing.

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