4 Tax Refund Scams To Watch Out For
Written by
Sean Bryant
Edited by
Zuri Anderson
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Tax season is already stressful for many people.
The last thing you need is a fake text about your tax refund or a call claiming you owe money.
Scammers rely on panic and confusion. Knowing the most common tax scams can help you slow down, spot red flags and protect your personal information.
Text or Email About Your Tax Refund
One of the most important things to understand is that the IRS will never contact you by text message, email or social media unless you’ve given them your permission. Unfortunately, scammers use these methods to scare individuals into believing there is a problem with their refund.Â
However, scammers may also try to tell you that you’re owed money. They want you to verify your information, which should be an obvious sign that you’re being scammed.
If you receive a text or email from someone claiming to be from the IRS, never click the links included or provide any personal information. Instead, go directly to IRS.gov and check your refund status.  Â
IRS Impersonation Phone Calls
The IRS may contact you by phone, but it often directs you to the IRS website to securely manage your account. It will never contact you demanding immediate payment or threatening arrest. If you receive a phone call requesting payment, hang up and go to IRS.gov to check your account.
Fake Tax PreparersÂ
Some scammers go beyond pretending to be the IRS and actually impersonate a tax preparer. These individuals often promise you a large tax refund or charge a fee based on a percentage of your refund. They have also been known to ask you to sign a blank return to speed up the filing process or refuse to sign the return themselves.Â
When working with a new tax preparer you’re not familiar with, always verify their credentials to ensure they have your best interests in mind.
Identity Theft and ‘Ghost’ Filing
In recent years, ghost filings have become a growing concern. This occurs when someone uses your Social Security number to file a tax return on your behalf before you do. The refund is fake, but it is usually structured to provide the scammer with a significant refund. By the time you file your return, the IRS shows it has already been filed.
To protect yourself from this scam, file your taxes as early as possible. You can also request an IRS Identity Protection PIN before tax season begins.
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