Spot tax scams

More than $1.5 billion (yes — billion!) was stolen in tax refunds in 2016, according to the U.S. Government Accountability Office (GAO). Links to an external site. Typical tax fraud scams include:

• Ghost tax preparers — Be cautious if the person who prepares your return refuses to sign it as the preparer. Shady tax preparers may also require cash payment, collect a percentage of a large promised refund that never comes, or redirect your refund to their own accounts. If you use a tax preparer, review their work carefully for accuracy and completeness before signing the return and sending it to the IRS. In the eyes of the IRS, you are always legally responsible for the content of your tax return, regardless of who prepared it for you.
• IRS refund email — This is really a Trojan horse waiting to download malware onto your computer. The virus is used to collect sensitive information or give the thief control of your computer when you click an email attachment or link. The IRS reminds taxpayers each year that they do not contact anyone by email. The IRS always will mail a letter before calling you about unpaid taxes. They also will not demand you make a payment before you have had an interview or time to appeal their decision. Finally, the IRS does not use law enforcement officials or immigration officials to repeal your driver’s license or revoke your immigration status for unpaid taxes.
• Erroneous refund scams — Thieves claim to represent a collection agency or the IRS informing you of a tax refund made in error. If a refund is issued by mistake, follow the IRS’s procedure outlined in the Taxpayer Guide to Identity Theft. Links to an external site.

Prevent tax fraud by filing your return early and monitoring your credit report at AnnualCreditReport.com. Links to an external site. Remember, the IRS will not contact you by email, text or social media to request your personal information. Learn more about tax scams at IRS Tax Scams/Consumer Alerts. Links to an external site.

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