Unfortunately, fraudsters are out there targeting seniors, people who have experienced a disaster (such as a tornado), people who give charitable donations, and everyday people just minding their own business. If you receive calls, emails or texts claiming to be from the IRS, don’t fall for it!

Scammers often attempt to deceive individuals by falsely claiming they are owed an unexpected tax refund or demanding immediate tax payments to avoid alleged penalties. In such situations, exercise caution and verify directly with the IRS to confirm the validity of any refund or payment requests. Always visit the official IRS website or contact them by phone using the official contact information listed.

The IRS warns you should watch out for:

• A big payday – If it sounds too good to be true, it probably is. Bad tax advice on social media may convince you to lie on tax forms or mislead you about credits you can claim.
• Demands or threats – Impersonators want you to pay “now or else.” They threaten arrest or deportation. They don’t let you question or appeal the amount of tax you owe. 
• Website links – Odd or misspelled web links can take you to harmful sites instead of IRS.gov.

Social media has its place in today’s world of constant information sharing but be wary of people– even well-intentioned friends–offering tax advice in your feed. First and foremost, every person’s tax situation is individual and what “works” for them or got them a refund may not be applicable to you.

Second, most of your friends are not accounting professionals. Chances are they would not share erroneous information on purpose, but inaccurate data tends to spread like wildfire when it comes to topics like refunds, “tax tips,” and the like.

Trust your friend’s recipes; not their financial guidance.

Safeguarding your personal information is paramount in the fight against tax scams. Never share sensitive data such as your Social Security number, bank account details, or confidential information with unknown or unverified sources. Sharing of sensitive data should only occur through secure and trusted channels to minimize the risk of it falling into the wrong hands. For example, consumers can create a free account through ID.me that allows secure access to your IRS online account for making payments, checking refund status, and other personal tax-related tasks.

To stay informed and protect yourself from tax scams, utilize the following official resources:

• Recognize Tax Scams and Fraud – Educate yourself about common tax scams and learn how to report instances of fraud.
• IRS Identity Theft Central – Access essential information on preventing and recovering from identity theft related to tax matters.
• IRS Identity Protection PIN (IP PIN) Program – As a proactive measure, explore how to obtain an Identity Protection PIN to safeguard your tax return from potential identity thieves.

By leveraging these official resources, you can equip yourself with the knowledge and tools necessary to safeguard your finances and personal information during tax season.

At Specialized Accounting Services, your financial security is our top priority. We’ve honestly seen it all, so not much surprises us when it comes to tax scams and fraud. If you have any concerns or require assistance navigating tax-related matters for your small business or franchise, contact us via our website form or give us a call.