116 3rd St SE
Cedar Rapids, Iowa 52401
FROM THE BUREAU: Protect yourself from tax scams
IRS won’t ask for your debit or credit card numbers
Tax scams are among the most stubborn cons out there. They reappear often, each time with a slightly different spin.
The main theme is scammers posing as the Internal Revenue Service — the federal tax-collecting agency — trying to trick people into either paying up or sharing personal information.
These scams often start with a phone call and take two basic forms.
In the first, the IRS "agent" pressures payment by prepaid debit card or wire transfer for back taxes. The agent threatens arrest and fines. In another version, scammers claim to be issuing tax refunds and request personal information to send a refund, creating an identity theft scenario.
Impostors go to great lengths to appear real. They give a fake name and badge number with Caller ID from Washington, D.C., followed perhaps with an email that has the IRS logo, colors and intimidating language.
A serious and official sounding “robocall” recording is a red flag as the IRS may call but only after reaching out by mail.
Scammers typically apply pressure to act quickly. Payment must be made by wire transfer, prepaid debit card or other non-traditional methods. These methods are largely untraceable and non-reversible.
The IRS will not demand immediate payment, require a specific payment form or ask for credit or debit card numbers over the phone.
Identity theft scams
Another concern is tax identity theft when a thief uses a stolen name and Social Security number to file a tax return and collect a refund.
It may also be a clue that someone is using another person’s information for a job. Consumers are unaware until receipt of an IRS notice about returns or information concerning an unknown employer.
Phishing scams
Phishing emails appear to be from the IRS with a link to a bogus website intended to mirror the official IRS site. They contain directions such as “you must update your IRS e-file immediately.”
These emails are not from the IRS.
Tips
Here are seven tips on avoiding tax scams:
- The best way to avoid tax identity theft is to file your taxes early. File before a scammer has the chance to use your information to file a fake return.
- Protect personally identifiable information such as your birth date, Social Security number, bank accounts or other information that confirms your identity.
- The IRS does not initiate contact by email, text message or social media to request personal or financial information. Guard your account numbers, passwords, PINs, etc.
- Only deal with trustworthy tax preparation services. For many, finding a trustworthy tax preparer is a good idea. Properly identify, evaluate and understand online options.
- Check out websites carefully and make sure you are accessing the real IRS (.gov) website when filing your taxes electronically or making an inquiry.
- If you get tax information electronically from your employer or other entity, treat that information carefully.
If you are a victim of tax ID theft, contact the IRS at 1-(800) 908-4490. Check with the Federal Trade Commission for an ID theft plan at identitytheft.gov.
Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org.
Bobby Hansen
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