As tax season kicks off, taxpayers should be wary of related scams, according to a new report.
The Better Business Bureau (BBB), a nonprofit consumer protection organization, is warning taxpayers to be on the lookout for tax filing-related crimes, including scams that involve people impersonating the Internal Revenue Service (IRS) to get money or personal information, CBS News recently reported.
These scams include tax identity theft, where someone uses another person’s social security number to file a tax return and receive a refund, email phishing, impersonating IRS employees, and fake tax preparers.
According to the IRS, tax-related scams have cost taxpayers an estimated $5.7 billion in 2022.
“Regardless of how you prepare your taxes, you could encounter a scam,” said Steve Bernas, CEO of the BBB to CBS. “Scammers often use fear, imposter phone calls, texts, emails, and even fraud letters to play on people’s emotions.”
The BBB emphasized that the best way to avoid becoming a victim of tax-related fraud is to file your taxes as early as possible before the scammers have a chance.
For added security, the BBB also recommends obtaining a six-digit PIN from the IRS website before filing your tax return.
The IRS does not ask for personal or financial information via email, text message, or social media, according to the BBB, so taxpayers mustn’t share sensitive information such as PINs, passwords, social security numbers, or account numbers through these channels.
Scammers also fake websites to mimic the IRS website, so it is crucial to make sure you are on the official IRS website and that you are on a secure connection (https://). Choosing a reputable tax preparation service is important as well.
When using electronic services, it is safer to download your file to a secure computer to prevent unauthorized access to your tax information.
If you are a victim of taxpayer identity theft, report it to the IRS at 800-908-4490 and file a complaint with the Federal Trade Commission.
BY NAKI PARK, HOONSIK WOO [park.naki@koreadaily.com]
