With the April 15 tax deadline around the corner, the IRS is cautioning taxpayers about an uptick in scams targeting them.
During tax season, individuals naturally expect communications from the IRS about refunds and payments, which scammers exploit. Eric Bronnekant, who directs a tax office, mentioned this trend in a conversation with the Post.
According to him, fraudsters take advantage of increased anxiety regarding potential tax changes to catch victims off-guard. “They create a sense of urgency around issues like late payments or refunds,” he explained. This can pressure people into acting quickly without verifying the authenticity of the message.
The IRS highlights certain scams in its annual “Dirty Dozen” list of fraudulent activities. This list showcases the most threatening scams affecting both taxpayers and tax professionals. Bronnekant stressed that being vigilant throughout the year is essential since scammers continuously seek new opportunities to obtain financial and personal information.
He added that many fraudsters are now utilizing advanced AI technologies to replicate personal information and simulate legitimate communications. For instance, it’s becoming more frequent for scammers to impersonate someone’s relative over the phone, using AI to mimic voices and create urgent situations about needing money.
“It’s smart to stay calm and not rush into providing personal details or payments when pressured,” Bronnekant advised. Taking a moment to confirm requests through legitimate channels can save people from costly mistakes.
“Every year, tax scams adapt, but they often rely on the same tactics: creating urgency, posing as trusted agencies like the IRS, and promising unusually high refunds. This is why understanding cybersecurity and fraud awareness is crucial,” he noted.
He recommended that taxpayers consider using the IRS Identity Protection (IP) PIN program, which provides a unique number to enhance security. This PIN, assigned by the IRS, adds an extra layer of protection distinct from other PINs taxpayers might have.
“Simple actions such as confirming unexpected requests, securing your accounts, and utilizing resources like the IP PIN can greatly contribute to financial safety,” he added.
Here are the key scams to watch out for:
IRS impersonation via email and text
Scammers often send deceptive emails and messages designed to appear as if they originate from the IRS, typically containing alarming information or links leading to counterfeit IRS websites. These fake sites often prompt users to “verify” their accounts, asking for personal details.
The IRS cautions against clicking links or opening attachments in unknown messages and urges reporting suspicious communications to phishing@irs.gov. Engaging with these messages can lead to dangerous malware being installed on devices.
Impersonating the IRS over the phone using AI
Phone scams, including robocalls that use AI for voice imitation, aim to deceive taxpayers. The IRS emphasizes that it usually reaches out first via mail and does not issue urgent, threatening calls demanding immediate payments or claiming arrest.
If you get a suspicious call claiming to be from the IRS, hang up and report it to the agency.
The Department of Revenue has also highlighted the risks of relying on AI-generated information for complex tax matters.
Fake charity work
Some scams exploit tragedies by creating fake charities to solicit donations and personal details. Individuals donating to supposed charities should be careful, as only recognized IRS tax-exempt organizations are eligible for deductions.
Misleading social media advice
Taxpayers must also approach social media with caution. The IRS reported over 600 cases of impersonation on these platforms. Misinformation can lead individuals to file falsified returns, resulting in delayed refunds or audits.
It’s critical to consult reliable sources like the IRS or qualified tax professionals instead of social media “tax hacks,” which can lead to legal repercussions for deliberately fraudulent filings.
Identity theft via IRS online account
Scammers may try to access IRS online accounts using stolen information. It’s essential to establish accounts directly through the IRS and not through unsolicited services that offer help.
Abuse of undistributed long-term capital gain claims
Form 2439, which allows for refunds on undistributed capital gains from certain investment funds, is often misused. The IRS is seeing exaggerated claims, including those linked to fake organizations.
Misleading “self-employment tax credit” promotion
Some fraudsters are misleading taxpayers about a so-called “self-employment tax credit,” leading to inaccurate returns and fraudulent refunds. The IRS advises relying only on reputable sources.
“Ghost Preparator”
A “ghost preparer” will file a return without signing it, which is a major warning sign. Taxpayers remain liable for their tax submissions, even if prepared by someone else.
Non-cash charitable donation fraud
Some scams involve inflated valuations on donated properties, promising tax benefits that are too good to be true.
Fabricated wage or withholding data
Scammers often encourage taxpayers to misreport income or withholdings to create larger refunds. The IRS warns that this could lead to severe penalties.
Spear phishing and malware campaigns
Emails disguised as “new customer” alerts may trick tax professionals into clicking harmful links, compromising sensitive data.
“Offer at Compromise Factory”
While the Offer in Compromise program assists some who can’t pay their full tax debt, misleading marketing preys on vulnerable individuals. Taxpayers can check their eligibility using free tools from the IRS.
