IRS Issues Warning: How to Avoid Tax Return Scams This Year

As tax season begins, millions of Americans rush to file their tax returns to claim their tax refunds as soon as possible. However, many taxpayers face challenges in preparing and submitting their documents, leading them to seek help. While the IRS offers free assistance to those who qualify, not everyone can access these services, forcing some to turn to third-party tax preparers.

Unfortunately, tax season also brings an increase in scams, with fraudsters taking advantage of those needing assistance. Knowing how to identify legitimate help and avoid tax scams can protect your finances and personal information.

Who Qualifies for Free IRS Tax Help?

The IRS provides free assistance for eligible taxpayers through programs like:

• Direct File (for qualifying individuals).
• Volunteer Income Tax Assistance (VITA) (for those with low income).
• Tax Counseling for the Elderly (TCE) (for senior citizens).

If you don’t qualify for these free services, you may need to hire a tax preparer—but not all tax professionals are trustworthy.

How to Avoid Tax Scams

Before seeking help with your tax return, consider these key precautions to avoid falling victim to fraud:

1. Never Sign Incomplete Documents

• Scammers may ask you to sign blank or incomplete forms, allowing them to alter the information later.
• Always review your completed tax return before signing.

2. Verify the Tax Preparer’s Credentials

• Ensure that the agent has an official IRS Preparer Tax Identification Number (PTIN).
• Check their credentials on the IRS Directory of Federal Tax Return Preparers.

3. Beware of Promises of an Unusually Large Tax Refund

• If a tax preparer guarantees you a much higher refund than expected, be cautious.
• Fraudulent agents may inflate deductions or falsify information, leading to IRS audits and penalties.

4. Contact the IRS if You Have Any Doubts

• If something seems suspicious, call the IRS directly at 1-800-829-1040 or visit IRS.gov.
• Avoid sharing personal or financial details with unverified individuals.

Common Tax Scams to Watch Out For

1. Identity Theft

Fraudsters can use stolen Social Security numbers to file fake tax returns and claim refunds in your name.

2. Refund Theft

Scammers may pose as legitimate tax preparers, gain access to your refund, and redirect the money to their own accounts.

3. Phishing Scams

Beware of emails, phone calls, or texts claiming to be from the IRS, asking for personal information or payments. The IRS never contacts taxpayers via email, text, or social media.

4. Ghost Tax Preparers

These scammers prepare tax returns but don’t sign them, leaving you responsible for any errors or fraud. Only sign a return prepared by a registered professional.

When Is the Tax Filing Deadline?

The IRS tax deadline for 2024 is April 15th. The earlier you file, the sooner you can receive your tax refund and reduce the risk of identity theft.

Filing your taxes correctly and safely is crucial to avoid scams and ensure you receive your rightful tax refund. Always use IRS-approved services, verify the credentials of tax preparers, and be cautious of fraudsters promising unrealistic refunds. If in doubt, consult the IRS website or helpline for assistance.

By staying informed and vigilant, you can protect your finances and complete your tax return without unnecessary risks.

Source

FAQ’s

1. How can I check if my tax preparer is legitimate?

Ensure they have an IRS Preparer Tax Identification Number (PTIN) and check their credentials using the IRS Directory of Tax Return Preparers.

2. What are the biggest tax scams to watch for?

Common scams include identity theft, refund fraud, phishing emails, and ghost tax preparers who file false returns under your name.

3. Can the IRS contact me by phone or email?

No. The IRS does not initiate contact via email, phone, or text messages. If you receive a suspicious message, report it to the IRS.

4. What should I do if I suspect a tax scam?

If you believe you’re being scammed, contact the IRS at 1-800-829-1040 or visit IRS.gov to report fraud.

5. When is the tax filing deadline for 2024?

The deadline to file taxes is April 15, 2024. Filing early can help you receive your refund sooner and reduce the risk of identity theft.