Protect Yourself This Tax Season: A Client Guide to Spotting Scams

Tax season is a prime time for scammers and identity thieves. To help keep your personal and financial information secure, we have compiled this guide on how to identify fraudulent requests and IRS impersonators.

How to Know if It’s Really the IRS. The actual IRS will never do the following:

·         Demand specific payment methods: The IRS will never ask for immediate payment via gift card, prepaid debit card, or wire transfer. They generally mail a formal bill first.

·         Deny your right to appeal: You will never be forced to pay taxes without the opportunity to question or appeal the amount owed.

·         Threaten you with arrest: The IRS does not use local police, immigration officers, or other law enforcement to threaten taxpayers with arrest.

·         Threaten your status: They will never threaten to revoke your driver’s license, business license, or immigration status.

Common Warning Signs of a Scam:

·         Spoofed Caller IDs: Scammers manipulate caller IDs to display official-sounding names (like the IRS or Medicare) to falsely establish trust.

·         Fabricated Problems or Prizes: They often claim there is a sudden emergency, a compromised account, or a lottery prize that requires an upfront fee to resolve or claim.

·         High-Pressure Tactics: Scammers manufacture panic to force you into acting without thinking. They may threaten legal action or insist you stay on the phone to prevent you from verifying their claims.

·         Untraceable Payment Demands: They frequently insist on alternative payment methods like money transfers, retail gift cards, or fake check schemes.

Steps You Can Take to Stay Safe:

·         Filter Your Communications: Actively block unwanted calls and set up filters for suspicious text messages.

·         Verify Directly: Never share personal or financial information during an unexpected call or text. Instead of clicking links, contact the organization directly using a verified phone number or their official website.

·         Resist the Urgency: Legitimate businesses and government agencies will always give you time to review your options. Anyone pressuring you to pay immediately is a scammer.

·         Consult Someone You Trust: Before transferring money or sharing information, explain the situation to a friend, family member, or advisor. A quick second opinion often exposes the fraud.

If you ever receive a suspicious tax-related call, email, or notice, please reach out to our office before taking any action. We are always available to help you verify its legitimacy.