Three Ways to Get Scammed During Tax Season

There’s nothing better than the great feeling of filing your taxes if you either have the money to pay, or even better, will be receiving a refund. However, there are plenty of shady individuals out there looking to take advantage of your joy via tax scams.

If you’re preparing to file your taxes for this tax season, it’s good to first be aware of the numerous ways that scammers are looking to grab your money.

1. Phishing

Phishing is a scam used by Internet thieves who take advantage of victims by conning them into providing personal information. An example of a phishing scam might be you receiving an email notifying you that “You Owe the IRS $492″ and that if you don’t pay it immediately (by clicking the provided link) you will face penalties and more.

The email will likely come from an address like IRS@taxdebtproblems.com or some other address that doesn’t exist. You see the IRS and think it’s legitimate. Next them you know, you’ve provided your Social Security number, date of birth and everything else needed to steal your identity.

If you receive emails like this, you can report them to the IRS by email phishing@irs.gov.

2. Return Preparer Fraud

While there are a lot of legitimate tax preparers out there, unfortunately there are a lot of preparers that prepare fraudulent returns. Because they’re getting a cut of your refund, they will do whatever they can to make sure you get the biggest one possible – even if they’re breaking the law in the process. (The IRS is changing laws for tax preparers.)

The problem with this is that the taxpayer is always responsible for what’s on the return, which is why you should choose carefully who you have prepare yours. Some good rules of thumb are to not trust agencies that promise a huge refund. How can they promise this when they don’t even know whether you owe? By carefully choosing your tax preparer, you could save yourself tons of trouble in the long run.

3. Credit Counseling Agency Scams

Another problem that you might be aware has less to do with filing your return and more to do with getting help with paying a tax debt off. If you owe the IRS big, you may want to consult a tax professional for help with ways to be the debt down easily. Some credit counseling agencies are great with providing this service; however, some are just out to take your money.

The ones to be leery of are those that guarantee that they can repair your credit score, impose high setup fees or monthly service charges or push debt payment plans on you.

Safe Ways to File and Receive Tax Get Help

You may be wondering how you can make sure you’re able to work with those you can trust when filing your taxes or receiving tax debt assistance. Here are a few considerations:

• File Your Taxes the Traditional Way: If you’re comfortable enough with filing taxes then you might try it on your own with a paper form. By going through the form yourself, calculating the math and mailing it in, you know not only that you did the work but that you put it in the mail – no fishy websites or faulty preparers to worry about.
• File Your Taxes Online: Another great option is to do a tax e-file, which basically means that you file your taxes online. There are tons of sites offering their services (many of which you shouldn’t trust); however, the reputable sites can be found through the IRS website. What’s great about e-filing is that the calculations are done for you, completely simplifying the process. Also, if you receive a refund, it comes within 2 weeks, rather than the standard 6 when filed on paper.
• Get Tax Assistance From Reputable Companies: If you’re looking for tax assistance, it’s good to work with companies with good reviews and reputations. Also, you might work with nonprofit organizations that offer free tax help and other solutions without charging you.

It’s a tough world out there, especially when it comes to taxes. So as you prepare to file or clean up your tax debt, take time to watch out for scams of all types.