These scams can occur year-round, but tend to peak this time of year as people are preparing their tax returns and fraudsters are trying to steal their money, personal information and data. This year’s Dirty Dozen list from the IRS includes:
- “Bad social media advice” - It ranges from misleading to “wildly inaccurate tax advice,” which may even encourage people to create or misuse W-2 forms to get a bigger refund, which is illegal.
- Fake help for creating an IRS account - “Swindlers can pose as a ‘helpful’ third party and offer to help create a taxpayer’s IRS Individual Online Account,” the IRS warns. “In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams.”
- The “bogus self-employment tax credit” -There’s bad tax advice going around social media that suggests you claim a non-existent “self-employment tax credit” and it’s leading some to file false claims.
- The overstated withholding scam - The IRS warns this one encourages people to fill out a W-1 or a 1099 with false income and withholding information that’s just made up. "Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding." But here’s the thing, the IRS verifies these claims and if they can’t, they’ll hold the refund, along with any real money you’re owed.
- Email phishing scams - These can include emails sent by scammers claiming to be from the IRS about a phony tax refund or threatening them with fake legal or criminal charges for tax fraud. There are also smishing texts from scammers trying to scare people with phrases like “Your account has now been put on hold” or “Unusual activity report.” The IRS reminds taxpayers to never click on unsolicited communication claiming to be from them as it may load malware.
Source: USA Today