As the deadline to file tax returns fast approaches, scammers are stepping up efforts to swindle hard-working Americans as they rush to submit paperwork.

Whether by posing as IRS officers to trick workers into handing over personal details, or stealing people’s identities to claim refunds, crooks pocket billions of dollars through tax scams every year.

Nearly of suspected scams were made in 2022 – and estimates put the annual cost to businesses and consumers . 

As IRS Commissioner Chuck Rettig explains: ‘With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds.’

Here, DailyMail.com outlines some of the most common tactics used by fraudsters – and expert tips on how to protect your cash this tax season. 

Phishing emails 

Phishing emails are deployed by scammers year-round to trick victims into handing over personal information and bank details – but cases soar during the tax filing season.

Scammers pose as IRS officers and send convincing emails that make a variety of claims, from threats of fines for ‘unfiled returns’ to notices that the victim is owed a refund.In many cases, the emails, which often include IRS branding, ask the target to click a link to submit or verify their information.

The link then directs the victim to a fake website and they are either asked to make payments or hand over sensitive personal information, like bank details or their social security number.

Some phishing emails may also ask the victim to call a telephone number.In these cases, the scammer will pose as an IRS officer and take the person’s details over the phone.

One common demand is that a victim pays a bill using gift cards. They’re prompted to purchase a gift card from a popular store like Target or Best Buy, then hand over the card’s code to cover their unpaid bill.

The IRS never asks for payments by gift card.In fact, any circumstances where someone who claims to be from an official agency asks for a payment by gift card is almost certainly a scam.

Smishing

Smishing is phishing by SMS and text message.These text scams have become increasingly common in recent years – and more sinister, too.

The crooks set up a fake phone numbers then send out text messages en masse to hundreds, and sometimes thousands, of unsuspecting targets.There are several ways scammers obtain the cell numbers of their victims – but usually they’re scraped from huge online databases.

Messages are often threatening and claim a lawsuit has been filed against the target by the IRS.Sometimes they claim a warrant has been issued for the person’s arrest.

The text will then prompt the victim to call a number or click a link.

Either way, they’re directed to a fake website or fraudster posing as an IRS official and prompted to hand over sensitive personal details or make payments.

Rettig said: ‘In recent months, the IRS has reported multiple large-scale smishing campaigns that have delivered thousands – and even hundreds of thousands – of IRS-themed messages in hours or a few days, far exceeding previous levels of activity.’ 

Door to door scammers

While in-person scams are less common, the IRS warns these still take place across the country.

Real IRS agents occasionally make unannounced visits to homes and businesses to discuss taxes owed, or returns due.Scammers try to take advantage of this by posing as officials, often with convincing ID or paperwork, to trick victims into giving over information or making payments

You are right to be suspicious if someone shows up unannounced and claims to be an IRS officer – especially if you’ve got no reason to expect it.Taxpayers generally receive several letters before an official will go to their home or business.

First, always check a person’s ID. Revenue officers carry two forms of official ID, IRS-issued credentials (also called a pocket commission) and a HSPD-12 card, which is a government-wide standard form of identification for federal employees.

Both forms of identification have serial numbers and photos of the employee – and you can ask to see both.

If you are still suspicious, a real IRS officer will have no issue with letting you call their hotline to check if it’s a legitimate visit.Taxpayers can call 800-366-4484 to report impersonation scams.

Phone scams

One of the most common techniques deployed by scammers is cold calling individuals and businesses and posing as an IRS officer.

They are often aggressive and claim the target must immediately settle an unpaid bill.Sometimes, the victim will be threatened with legal action or a visit from police if they don’t pay.

In other cases, the caller will say the victim is eligible for a tax refund, then ask for personal information and bank details so the payment can be made.

If it seems suspicious – or you had no reason to suspect a call – hang up and dial the hotline to report a scam. 

The IRS will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer.Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
• Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
• Call unexpectedly about a tax refund.

Identity fraud

The IRS warns that organized crime rings often steal people’s identities to make fraudulent unemployment claims to collect benefits across multiple states.

Tell-tale signs that someone has fallen victim include receiving mail from a government agency about a claim they didn’t file or receiving an IRS Form 1099-G reflecting unemployment benefits they weren’t expecting.

Anyone who thinks they’ve fallen victim to identity fraud should visit website class=”mol-para-with-font”>The Better Business Bureau also warns of a similar scam whereby crooks will use a victim’s personal details, including their Social Security Number, to submit fake tax returns and collect a refund.

Individuals usually don’t realize they have fallen victim until they receive a letter from the IRS which says more than one tax return has been filed.

Fake tax experts

Finally, scammers don’t just pose as IRS agents to trick victims during filing season, they also pose as tax experts, offering to help victims with their returns.

These crooks usually promote their fake services through social media and offer cheap rates to lure in their victims.Sometimes, they build fake websites to give the impression of credibility.

In a recent case in South Bend, Indiana, around 20 women claim they were tricked by a fake company who promised to complete their returns for a fee of $500.

After handing over their personal information – and cash – many of the victims realized they’d been scammed.When some tried to access their records on the IRS website, they received error messages which said their information was incorrect. 

Other victims claimed they later received letters from the IRS that said their returns were being reviewed.

Always check and double check an individual or company before paying them to help with your taxes.Never sign up with a stranger through Facebook simply because of the promise of low rates. Where possible, check out a company’s reviews. If in doubt, shop around. 

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