It’s that time of year again- tax season! With the April 15th tax filing deadline right around the corner, it’s important to be careful of tax scams that could compromise your personal and financial information. But don’t worry- we’ve got your back! Town & Country Bank has highlighted three common tax scams to help keep you safe.

Email Phishing Scams

Phishing scams are one of the most common tax scams. In this type of scam, the victim receives an email that appears to be from the IRS. Once the email is opened, the scammer attempts to obtain the recipient’s personal and financial information. This information is then used to steal the victim’s identity, empty their accounts, or file taxes using the victim’s name and keep the refund. When opened, these emails often contain malware that installs software designed to disrupt, damage, or gain unauthorized control of a computer system. It is important to note that the IRS does not use email, text messages, or social media to communicate with taxpayers regarding tax debts or refunds. The United States Postal Service (USPS) is the primary carrier for all correspondence between the IRS and the public. 

Phone Calls

A common tax scam involves fake phone calls where the caller uses a spoofed IRS toll-free number to contact the victim. The scammer then tells the victim that they owe thousands of dollars in taxes, which must be paid immediately, or that they face the threat of being arrested or deported. It is important to note that while these fake IRS numbers are common, malicious callers can also use non-IRS numbers and claim it to be a “field office” number if questioned.

Identity Theft

Identity theft is a problem that can happen anytime, but especially during tax season. One of the most common tax scams is when someone steals your Social Security number and uses it to file a tax return in your name to get your refund. There are some signs to watch out for

• Notification from the IRS that your tax return has already been filed
• Receiving a tax transcript from the IRS that you didn’t ask for
• Having your e-filed tax return rejected because someone already used your Social Security number
• Notification from the IRS that someone created an account on the IRS.gov website using your information.

If any of these things happen, you should be concerned about tax identity theft and take steps to protect yourself.