BOSTON — As tax season is upon us, Boston police are warning residents of common tax scams.
Here’s what you need to know to protect yourself:
1. IRS Imposter Scams
Fraudsters often impersonate IRS agents through phone calls, texts, emails, and social media. They claim you owe money and demand immediate payment, threatening arrest, deportation, or loss of property. These scammers might:
- Provide some of your personal information (e.g., Social Security Number) to appear legitimate.
- Use fake badge numbers and spoofed phone numbers to mimic the IRS or law enforcement agencies.
- Send emails with the IRS logo and official language but with noticeable spelling or grammar mistakes. These emails often contain links to fake websites urging you to update your IRS e-filing. Do not click these links—this is a phishing scam.
- In 2023, the IRS warned of a new scam involving fake letters about unclaimed refunds, asking recipients for personal and banking information.
Red Flag: Fraudsters often demand quick payment via wire transfers, gift cards, cryptocurrency, or payment apps. Do not comply—this is a scam.
2. Protect Yourself from IRS Imposters
- The IRS will contact you about owed taxes through U.S. mail.
- The IRS will not call unless you have a scheduled appointment.
- The IRS will allow you to ask questions or appeal owed taxes.
- The IRS uses private debt collectors but only after you receive a letter from the IRS. These collectors will not demand immediate payment or ask for credit card information over the phone.
- Neither the IRS nor its debt collectors will threaten arrest over the phone.
3. Identity Theft Scams
Fraudsters may steal your personal information, such as your Social Security Number, to claim tax refunds fraudulently. Protect yourself by:
- Storing tax records and Social Security cards in a secure location.
- Shredding tax documents before discarding them.
- Using two-factor authentication for tax preparation software like TurboTax, TaxAct, or TaxSlayer.
- Never share personal information over phone calls, emails, or text messages claiming to be from the IRS.
4. Ghost Preparers
“Ghost preparers” falsely promise big refunds by manipulating tax credits or benefits you don’t qualify for. They:
- Charge high fees, often requiring cash payments.
- Base their fee on a percentage of your refund, which they inflate with false information.
- Sometimes steal your refund by directing it to their own accounts.
- Target seniors and immigrant communities.
Warning Signs:
- They refuse to sign the tax return as the paid preparer.
- They ask you to sign and file the return yourself.
- They refuse to digitally sign electronic filings.
5. Tips to Avoid Tax Scams
- File early to prevent scammers from filing fake returns using your information.
- Verify websites to ensure you are on the legitimate IRS website. Watch for bad grammar or strange phrasing.
- Use trusted tax professionals. For guidance on finding reputable tax preparers, visit the Better Business Bureau.
- Secure your personal information and avoid filing taxes on public Wi-Fi networks.
- Get an Identity Protection PIN (IP PIN). This six-digit number prevents others from filing a tax return with your Social Security Number. Learn more here.
Important Reminder:
- The IRS never initiates contact via email, text, phone call, or social media for personal or financial information.
- If you’re unsure about a communication, stop and independently verify by contacting the IRS directly.
6. Reporting Tax Fraud
If you suspect tax fraud, report it to:
- Your Local Police Department or call 911.
- IRS at 1-800-908-4490 or visit IRS.gov.
- Federal Trade Commission at reportfraud.ftc.gov.
For more information, visit the link here.
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