As we enter the final month before Tax Day, it's crucial for taxpayers to remain alert. The IRS is warning that the approaching deadline often brings a rise in tax-related scams, and this year is no exception.
“Scammers are relentless, and they use the guise of tax season to try tricking taxpayers into falling into a variety of traps. These red flags can lead to everything from identity theft to being misled into claiming tax credits for which they’re not entitled,” said Terry Lemons, IRS communications senior adviser.
Watch: How to avoid scams and fraud this tax season:
Scammers are stepping up their game with various tactics. From fraudulent emails and text messages directing recipients to "click here" to resolve urgent issues with their taxes, to misleading social media advice regarding tax credits, fraud experts say it's critical for taxpayers to be aware of the threats.
The IRS has flagged a variety of scams, dubbing them the "Dirty Dozen." Among the most concerning are schemes targeting taxpayers' eligibility for the so-called "Fuel Tax Credit." While this credit is strictly reserved for farming and off-highway business use, many individuals are misled into believing they qualify. The IRS says misinformation also continues to circulate regarding a non-existent "Self-Employment Tax Credit", luring taxpayers into filing false claims or clicking on malicious links that direct them to fraudulent IRS websites designed to steal personal information. Falling victim to these bogus tax schemes can result in identity theft, as well as civil penalties or criminal charges.
Shedding light on the frequency of these scams, Veronica Gutierrez Carapia, a Senior Fraud Specialist at UW Credit Union, shared that her team reviews up to 150 potential fraud attempts every day — and she urges taxpayers to take extra precautions during this peak season.
Tips to Protect Yourself This Tax Season
- Always ensure that you are working with a trusted individual when preparing your taxes.
- Verify that any website you provide personal information to is legitimate.
- Be wary of unsolicited emails or phone calls claiming to be from the IRS.
