Taxpayers must be vigilant against an array of sophisticated scams as tax season unfolds. This crucial information, sourced from the IRS website, highlights the need for awareness and caution. Here, we delve into the most prevalent scams targeting individual taxpayers and tax professionals.
Scammers are dispatching mailings that masquerade as official IRS communications. These fraudulent letters falsely claim that recipients are due refunds. The danger lies in the convincing nature of these mailings, which often replicate IRS letterheads and language to deceive taxpayers.
Amidst economic challenges, the Employee Retention Credit has relieved many businesses. However, it’s also become a hotbed for scams. Fraudsters promote misleading information about eligibility and benefits, ensnaring businesses in fraudulent claims.
Another disturbing trend is encouraging false tax refund claims based on incorrect wage information. Scammers coach taxpayers to file returns with inflated or fabricated wage details, promising substantial refunds.
Cybercriminals are still sending phishing emails themed around the pandemic and taking advantage of the global health crisis. These emails aim to steal sensitive client data under the guise of offering pandemic-related information or assistance.
Scammers often exploit the goodwill of taxpayers by posing as legitimate charities. These fraudulent entities solicit donations, depriving genuine charities of much-needed funds.
In these scams, promoters falsely claim they can settle tax debts for a fraction of the owed amount, often promising “pennies-on-the-dollar” settlements. Such offers are usually misleading and can result in more financial trouble for taxpayers.
IRS-impersonation scams are specifically targeting students and staff with “.edu” email addresses. These scams range from fake tax bills to refund opportunities, aiming to extract personal information or money.
A particularly insidious form involves criminals filing fraudulent unemployment compensation claims using stolen identities. This impacts government resources and the individuals whose identities are stolen.
Following major disasters, scammers often pose as charitable organizations, exploiting the generosity of taxpayers wishing to help disaster victims.
Unethical tax preparers may complete returns but not sign them, known as “ghost” preparers. They often promise big refunds and charge hefty fees, leaving taxpayers in legal jeopardy.
Here, callers pose as IRS agents and demand money or personal information. These scams can be particularly convincing and threatening, causing undue stress and financial loss.
Tax professionals are not immune. Identity thieves target them to gather personal data for fraudulent tax returns. They also face various phishing and malware schemes designed to steal sensitive client information.
In this scheme, phishing emails falsely appear to be from TAP, seeking personal and financial information. These emails can be compelling and pose a significant risk of identity theft.
The IRS continuously updates and educates the public about these scams. Visiting the IRS website is highly recommended for more detailed information and updates on these and other tax-related scams. As always, vigilance and skepticism are critical defenses against these fraudulent activities. Remember, the IRS will never initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. Stay informed, stay cautious, and protect yourself from these ever-evolving scams.
Many people have learned about the power of using the Safe Money approach to reduce volatility. Our Safe Money Guide is in its 20th edition and is available for free.
It is an Instant Download. Here is a link to download our guide:
© Years of Copyright Publication 2015–2024 All rights reserved. Subject to the provisions of this notice, articles, materials and content published on this site (Annuity.com) are the property of Annuity.com, Inc. Annuity.com, Inc. allows the use of their content but reserves the right to withdraw permission at any time. Content includes articles, marketing materials, agent information used as content on all pages. Content used by Annuity.com as information for the public, enhancement of any agents reputation and lead generation for all sources is copyrighted.
