Warnings About Tax Season Scams
Bipartisan leaders from Congress’ Joint Economic Committee are raising concerns about scams related to the upcoming tax season. As the deadline for filing approaches, these fraudsters are increasingly targeting unsuspecting taxpayers.
Taxpayers have until April 15 to submit their 2025 tax returns or seek an extension, and it’s likely that many fraudsters will try to exploit this deadline. It’s estimated that around one in four Americans fall victim to these scams, which seem to be more prevalent, particularly with rising tax complexities. One concerning trend involves the use of artificial intelligence (AI) for creating deepfakes.
The JEC has shared a Fraud Alert, detailing important tips for taxpayers to recognize and avoid potential fraud. They emphasize being vigilant against scams that pretend to be from the IRS, which might start with phone calls, emails, or even text messages using fake caller IDs.
Average tax refund amounts are reportedly up nearly 11% compared to last year, according to IRS data.
It’s crucial for taxpayers to remember that the IRS usually makes initial contact through mail and not on social media. They will rarely send text messages or emails and will never demand immediate payment.
Anyone receiving suspicious communications should steer clear of scanning QR codes or clicking on links, as these could contain malware or redirect you to phishing sites aiming to steal your information.
Urgent messages claiming to be from the IRS, especially those requesting personal data or unusual payment methods, should raise red flags.
Taxpayers can verify any contact by calling the IRS Helpline at 800-829-1040 or creating an online IRS account to check their tax records. If there are doubts about a website, it’s essential to ensure it’s the official IRS site, looking out for subtle misspellings or extra characters in the URL, which are signs of deception.
The IRS has warned Americans to remain cautious about new scams this season.
Typically, the IRS will communicate through the mail rather than by phone or text, particularly not for payment requests or personal info.
Individuals working with tax services or non-IRS agencies should also be alert to fraudulent tax preparers. Be cautious of firms demanding hefty upfront fees or promising substantial refunds. Checking the status of unfamiliar preparers with resources like the Better Business Bureau can help. Taxpayers should also request the Preparer Taxpayer Identification Number (PTIN) from their tax preparers and consult the IRS website if they refuse.
Scammers may impersonate reputable tax preparation firms, so it’s advisable for taxpayers to verify unexpected communications by contacting the official number listed on the company’s website.
This fraud alert was issued by the Joint Economic Committee, which includes both House and Senate leaders across party lines. It’s chaired by Rep. David Schweikert (R-Ariz.), with Ranking Member Sen. Maggie Hassan (D-N.H.), Vice Chairman Sen. Eric Schmidt (R-Missouri), and Sen. Don Beyer (D-Virginia) urging vigilance among taxpayers.
