The Essential Guide to Avoiding Tax Scams in 2024

As the calendar flips closer to tax season, it’s not just deadlines we find looming on the horizon but also the shadowy figures of tax scams. Every year, like clockwork, countless individuals and businesses are ensnared by these schemes, suffering significant financial and data losses. A staggering $5.7 billion was siphoned off by these nefarious activities in 2022, as reported by the Better Business Bureau. In this guide, we’ll arm you with the knowledge to spot and sidestep the most cunning tax scams threatening your peace of mind in 2024.

Understanding the IRS’s Communication Tactics

A critical step in fortifying your defenses against IRS-related scams is to familiarize yourself with the agency’s legitimate communication methods. Contrary to what scammers would have you believe, the IRS steers clear of initial contacts via email, text, or social media for personal or financial information requests. Their primary communication method is through snail mail. On rare occasions, a phone call might occur, but even then, they maintain a strict policy against soliciting sensitive information or making threats. Doubts about the legitimacy of a contact purporting to be from the IRS? There’s an article for that, helping you demystify whether it’s genuine IRS outreach or a scam in disguise.

Scams to Watch Out For This Tax Season

The Refund Scam: This perennial favorite scam plays on taxpayers’ hopes for an unclaimed refund. Armed with official-looking documents and the IRS logo, scammers fish for personal details, aiming to hijack your tax refunds and other financial data. Remember, if an offer seems too good to be true, it likely is.

Identity Theft: Cybercriminals yearn for your personal information to file fraudulent tax returns in your name. With over a million tax returns flagged for identity theft concerns last year, it’s a rampant issue. Shield yourself by securing an Identity Protection PIN and filing your taxes early.

The ERC Scam: The legitimate Employee Retention Credit has been twisted by scammers into a deceptive ploy, involving misleading advertisements and false promises. Before jumping on the ERC bandwagon, ensure you’re fully informed about the eligibility criteria from reliable sources.

The “Impact Payment” Scam: As tax document preparation season rolls around, beware of emails claiming to address “economic impact payments” related to your tax filings. These emails, complete with the IRS logo, dangle the carrot of a refund to phish for your information. IRS spokesperson Robert Marvin advises a firm not to click any provided links.

The “Additional Information Needed” Scam: Emails from the IRS requesting tax forms should raise red flags. While some forms are legitimate, direct IRS requests via email are not. Dismiss these fraud attempts and report them to the IRS.

The Tax Agency Impersonation Scam: Be skeptical of calls from supposed tax agencies, including the real Taxpayer Advocate Service or the fictitious Bureau of Tax Enforcement. Verify caller identities by contacting official numbers yourself.

Empowering Yourself Against Scams

While tax scams proliferate, knowledge and vigilance are powerful shields. File your taxes early, thoroughly vet any tax preparer you consider, and consider investing in a fraud protection service. Remember, cybercriminals are relentless, but so is our capacity to protect ourselves and our businesses.

For comprehensive cyber protection, don’t overlook the importance of a robust cybersecurity system. We invite you to take advantage of a FREE third-party security assessment offered by our team. We’ll scrutinize your network for vulnerabilities and develop a strategy to bolster your defenses. Experience has shown us that there’s always room for improvement.

Stay informed, stay skeptical, and above all, stay safe. Here’s to a secure and scam-free tax season in 2024.