How to Protect Yourself from Tax Season Scams

Tax season is stressful enough without scammers trying to take advantage of it. Every year, criminals come up with new ways to steal personal information, file fake tax returns, or trick people into handing over their money. The good news? A little awareness goes a long way. Here’s what you need to know to protect yourself from tax fraud and scams.

Common Tax Scams and How to Spot Them

Scammers use a variety of tricks, but most tax fraud schemes fall into three main categories:

1. Phishing Emails and Fake IRS Websites

Cybercriminals send emails pretending to be the IRS or a tax preparation service. These messages often contain:

• Urgent warnings about unpaid taxes or account issues.
• Links to fake websites that steal your information.
• Requests for sensitive data like your Social Security number or bank details.

🚨 How to stay safe: The IRS never emails taxpayers about refunds or payments. If you receive a suspicious email, don’t click on any links. Instead, report it to [email protected].

2. Fake IRS Phone Calls

Scammers often pose as IRS agents, claiming you owe money and must pay immediately—or face arrest. They may even manipulate caller ID to make it look like the IRS is calling.

🚨 How to stay safe: The IRS never calls to demand immediate payment. If you get a threatening call, hang up and report it to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

3. Tax Identity Theft

Fraudsters may file a tax return in your name to steal your refund. Many victims don’t realize their identity has been stolen until the IRS rejects their actual return.

🚨 How to stay safe: File your taxes as early as possible before scammers have a chance to use your information. You can also request an Identity Protection PIN (IP PIN) from the IRS for extra security.

Protecting Your Personal Information

Keeping your tax information secure doesn’t have to be complicated. Follow these steps to reduce your risk:

✅ Use Strong Passwords and Two-Factor Authentication If you file taxes online, choose a strong password and enable two-factor authentication on your tax preparation accounts.

✅ Beware of Untrustworthy Tax Preparers Not all tax preparers are legitimate. Stick to professionals with IRS credentials and be wary of anyone who:

• Promises unusually large refunds.
• Asks you to sign blank tax forms.
• Wants to deposit your refund into their own account.

✅ File Taxes on a Secure Network If you file electronically, do it on a private, password-protected Wi-Fi network. Avoid using public Wi-Fi, like in coffee shops or airports, to access tax documents.

✅ Shred Old Tax Documents If you’re done with old tax paperwork, don’t just throw it away—shred it. Identity thieves look for personal information in the trash.

What to Do If You Suspect Tax Fraud

Even with precautions, scams can still happen. If you think you’ve been targeted, take action immediately: • Report phishing emails to [email protected].

• If you receive a scam phone call, report it to TIGTA at 1-800-366-4484.
• If someone files a tax return in your name, fill out IRS Form 14039 (Identity Theft Affidavit) and contact the IRS Identity Protection Unit at 1-800-908-4490.
• Check your credit report for any suspicious activity at AnnualCreditReport.com.

Where to Find Help

If you believe your identity has been stolen or someone has used your Social Security number to file a fraudulent tax return, take action immediately:

• Visit the IRS website at IRS.gov for identity theft resources.
• Contact the IRS Identity Protection Unit at 1-800-908-4490.
• Report the fraud and place a fraud alert on your credit report at AnnualCreditReport.com.
• Call Coastal Credit Union’s Fraud Department at (919) 420-8211 if you suspect fraudulent activity related to your Coastal accounts.