Tax season isn’t just a time to gather documents and file returns—it’s also a prime opportunity for scammers looking to steal personal and financial information. To keep your information safe and avoid falling victim to these schemes, it’s essential to stay informed and vigilant.
7 Things to Keep in Mind This Tax Season
Every year, criminals use sophisticated tactics to trick unsuspecting taxpayers into handing over sensitive data or making fraudulent payments. Here are seven key ways to protect yourself during tax season.
1. Know How the IRS Contacts Taxpayers
The IRS does not initiate contact via email, text messages, or social media. If you receive an email that appears to be from the IRS, do not open it, click on any links, or download attachments. These emails are often phishing attempts designed to steal your personal information. Report any suspicious emails to phishing@irs.gov.
2. Be Skeptical of Unexpected Communication
Scammers often pose as IRS agents, tax professionals, or even financial institutions to gain your trust. They may contact you by phone, email, or even in person, claiming you owe money or that your tax return has an issue. This is why it’s crucial to remember that the IRS primarily communicates through mail.
3. Handle Phone Calls with Caution
Phone scams have become increasingly sophisticated. Today, scammers can even use caller ID spoofing to make it appear as though the call is coming from the IRS. If you receive a call from someone claiming to be an IRS agent, do not provide any personal information. Instead, ask for their name and badge number, hang up, and call the IRS directly at their official number to verify the request.
4. Be Wary of Payment Demands
The IRS will never demand immediate payment using gift cards, wire transfers, or cryptocurrency. They also do not threaten taxpayers with arrest, deportation, or license revocation for non-payment. If someone makes these claims while demanding payment, it is a scam. Any legitimate tax payment should always be made directly to the U.S. Treasury.
5. Watch for In-Person Scams
While less common, scammers may also attempt to impersonate IRS agents in person. They may carry fake identification and claim they need to verify your tax return. If someone comes to your door claiming to be from the IRS, request their credentials and call the IRS directly to confirm their legitimacy before providing any information.
6. Protect Your Personal Information
Keep your Social Security number, banking details, and tax records secure. Shred any sensitive documents before disposing of them, use strong passwords for online tax accounts, and enable two-factor authentication when possible. Scammers are skilled at gathering bits of information to commit identity theft, so never share your details with unverified sources.
7. Work with a Trusted Tax Professional
One of the best ways to safeguard your financial information is by working with a reputable tax professional. They can help you navigate your tax return, ensure compliance with regulations, and identify any suspicious activity. If you ever receive questionable IRS communication, your tax preparer can help verify its legitimacy and guide you on the proper course of action.
Stay Organized and Avoid the Stress with NSO & Company
Scammers thrive on fear and confusion, but staying informed and working with a trusted tax professional can keep you protected! At NSO & Company, we help you stay organized, file accurately, and avoid falling victim to tax scams. If you have any concerns about suspicious communication or need assistance with your taxes, you can always reach out to our team for expert guidance and peace of mind.