Financial safety: Protect yourself from these emerging tax scams

It happens every year. We need to file our taxes, and scammers come out to steal from us. Here’s what you need to know right now.

I find the IRS taxing

Every year, the IRS releases a list of scams to watch out for. These are the biggest ones for this year:

  • Fake comms: The IRS will never initiate contact by email, text, or social media about a bill or tax refund and will never ask you to send financial information over text or email.
  • Fake charities: You donate to a charity you think is real, but your money and details go to a scammer. And your charitable tax deduction? It won’t count.
  • Fake “helpers”: If a friendly stranger offers to help you set up an online account at IRS.gov or get your refund faster, they’re scamming you.
  • Fake tax preparers: If a tax preparer is unwilling to sign your tax return, they are breaking the law. Check your preparer’s credentials here.
  • Fake tax advice: If someone encourages you to file false tax credits, claim false wages, or otherwise lie on your return, it’s not a smart hack — that’s illegal. You won’t look good in jail.

Protect yourself 

Get an Identity Protection PIN: An IP PIN is a six-digit number that replaces your SSN or ITIN on your tax return. Getting one is an extra step every year, but so worth it — no one can file a fraudulent return, even if they have your SSN. Victims of identity theft are automatically enrolled in this program, and everyone else can apply online

Direct File if you can: Cut out the middleman and file your taxes directly with Uncle Sam. The IRS is piloting a new program in 12 states that will let you do just that — if you have a simple tax return. Use this link to see if you qualify. 

File using vetted tax software

Don’t Google “cheapest way to file taxes” for the love of Pete. Use software that is tried, tested and approved by the IRS. The top dogs are TurboTax, H&R Block and TaxAct. Get the version that suits your needs, and don’t forget about your state return! 

Quick hits 

If you only retain one thing from this email, have it be this quick list: 

  • Reminder: The IRS won’t call, text, or email you to demand payment.
  • Never click on a link in an email from the “IRS.”
  • If you get a call from the IRS, hang up and call back using the number on the official website. Here is the number for individuals: 800-829-1040.
  • Beware of anyone besides a registered tax preparer who claims to save you money when dealing with the IRS. 

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