It’s tax season again. Starting your returns now can save you from headaches and scams as the due date nears. The most common scam during tax season is identity theft. Scammers use victims’ social security numbers and other personal sensitive information to file a return to collect the refund. Consumers often don’t realize they’re victims until they’re unable to file their taxes or don’t receive their refund. 

 

Another popular tax season scam involves scammers impersonating the IRS. They call, email or text victims demanding immediate payment (often through uncommon methods like wire transfers or prepaid debit cards) and threaten arrest or fines if the victim doesn’t comply. The IRS will never contact consumers this way, or ask for Social Security numbers and other personal sensitive information over the phone. 

 

Scammers will also create fake websites that mimic popular tax preparation sites. Consumers should make sure they are on the right website before sharing any personal sensitive information like usernames, passwords or Social Security numbers.

 

“File your taxes as early as possible so scammers don’t have a chance to use your information first,” says Lisa Frohnapfel, President & CEO of the Better Business Bureau in Western Michigan. “Using a trusted tax-preparer can save you the headache of navigating fake websites and scammers attempting to gather your information and collect your refund. Use BBB.org to find a trustworthy, Accredited preparer near you.”

 

BBB suggests the following tips to avoid tax season scams:

 

• File your taxes as early as possible. 
• The IRS does not initiate contact with taxpayers by email, text or social media to request personal financial information or demand immediate payment. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts. Pressure to act quickly is a red flag that it is a scam. 
• Make sure you are accessing the REAL IRS when filing electronically. Visit IRS.gov, and make sure the lock symbol is in the browser window. This means the website is secure and safe to enter personal sensitive information. Double check any tax preparation websites to make sure you are not on a fake site. 
• Only deal with trustworthy tax preparation services. See our tips for finding the right tax preparer for you. Visit bbb.org to find Accredited tax preparation services that already meet our standards for trust and ethics. 

If you are the victim of tax identity theft, contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov.

 

Visit bbb.org/taxtips for more resources on how to find a qualified accountant or tax preparer near you, and learn more ways to avoid tax scams. 

 

Report tax scams to bbb.org/scamtracker.