How to Protect Yourself from Tax Season Scams

Remember: The IRS does not contact taxpayers by email, text messages, or social media channels to request personal or financial information.

As tax season approaches, it’s important to stay alert to potential scams designed to steal your money or personal information. One of the most widespread scams involves fraudsters posing as IRS agents and attempting to trick taxpayers into paying fake tax bills with gift cards. By understanding how these scams work and how to protect yourself, you can avoid falling victim to these deceptive tactics.

Gift Card Scams

Scammers will contact you by phone, text, email, or social media, claiming you owe taxes and demanding immediate payment through gift cards. Once you purchase the cards, they’ll ask for the card numbers and PINs to steal the funds. The IRS never accepts gift cards as payment. If you’re asked to pay this way, it’s a scam.

Red Flags of Tax Scams

1. Threats of Arrest or Legal Action: Scammers may claim you’re under investigation or face arrest unless you pay immediately.
2. Unusual Payment Requests: Fraudsters typically insist on payment through gift cards, prepaid debit cards, or wire transfers. The IRS never asks for payment through gift cards or prepaid cards.
3. Pressure to Act Quickly: Scammers will often try to pressure you into making a quick decision by calling multiple times or sending urgent messages, increasing the likelihood of you making a rash decision.

How to Identify Legitimate IRS Communication

• The IRS will never ask for gift cards or immediate payment.
• They don’t make threats of arrest over the phone.
• The IRS does not request sensitive information like your Social Security number via unsolicited messages.

How to Protect Yourself

1. Verify Communication: If you receive a suspicious message, visit IRS.gov to check any updates regarding your tax status.
2. Use Secure Payment Methods: If you owe taxes always pay through IRS-approved methods, like direct transfer or credit card, not gift cards.
3. Do Not Share Personal Information: Never give out your Social Security number, bank account information, or other sensitive data unless you are sure you are dealing with a legitimate source.
4. Report Suspicious Activity: If you suspect a scam, report it to the IRS and local law enforcement.

If You’ve Been Scammed

1. Contact the Retailer: If you purchased gift cards, report them to the store to stop the transaction.
2. File a Report: Report the scam to the IRS and law enforcement.
3. Monitor Your Accounts: Watch for suspicious activity and consider placing a fraud alert on your credit report.

By staying vigilant and being cautious about unsolicited requests for payment, you can protect yourself from common tax season scams. Remember, the IRS does not use gift cards, threats, or aggressive tactics to collect taxes. If in doubt, always verify the communication before taking any action.