Warning: Don't fall for these tax scams making the rounds
The deadline for filing 2023 taxes falls on Tuesday, April 18. Is your paperwork in order?
Scammers are ramping up their efforts as we get closer to the big day. Here are some tax scams to watch out for.
Social media ‘hacks’
The IRS is warning about fraudulent posts making the rounds on social media. The posts encourage you to use tax software to falsify information on your W-2. The “hack” involves inflating your income and withholding figures and your employer to get a large refund.
The IRS lists two more variations of this scheme:
- Scammers advise you to use Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to claim a credit based on the income you earned as an employee, not a self-employed individual. These credits were available for self-employed workers during the onset of the pandemic in 2020 and 2021; they’re not valid for 2022 tax returns.
- Another scam involves making up fake people employed in your household that use Form 1040, Household Employment Taxes. The next step is to file for a refund based on sick and family wages they never paid.
The IRS reminds people who try this that they face a wide range of penalties. This may include a frivolous return penalty of $5,000. Filers also risk criminal prosecution for filing a false tax return.
Phone phishing
Your smartphone is a prime target for scammers during tax season. Have you received unsettling phone calls warning that you will be arrested if you don’t call back? The IRS and its collection agencies don’t call people to demand payment over the phone.
The IRS does not text taxpayers regarding issues such as unpaid bills or refunds. While special circumstances may prompt a call from the IRS, you will receive several notices in the mail before this happens.
Gift cards? Really?
Here’s how this one goes. A scammer poses as an IRS agent and reaches out via email or phone, saying you owe money. First, you should know that no government agency will call you over something like this.
One thing you need to do to protect yourself this tax season
Every year when tax season rolls around, scammers are on high alert searching for their next victim. But as is often the case, by the time you realize that you have been scammed, it’s too late.
Criminals will use every occasion, national event or celebration to target victims. All scams are terrible, but the worst is when fraudsters steal your identity. It can be challenging to prove to authorities that you have been scammed. Tap or click here for details on the worst identity theft scam you’ve never heard of.
Watch out for this one fast-spreading scam
We’re only a couple of weeks away from the official start of the dreaded tax season. The IRS has announced the tax-filing season will begin Monday, Jan. 27, 2020.
And you know what that means. Yep, scammers will be out in full force. Though tax scams can appear all year long, you’re more likely to spot them during filing season. Tap or click here to learn about the last batch of tax scams.