Even if filing taxes is not on your radar yet, it’s never too soon to start thinking about tax scams and all the ways fraudsters will try to separate you from your money.
Although tax-related scams strike all year long, they seem to hit their stride as the federal filing deadline approaches – April 18, this year. And they tend to evolve into ever-more sophisticated variations.
For example, this year, experts are warning of a change-up in the bogus texts or emails that tell taxpayers they supposedly owe money and must pay up.
In the new version, victims get a tempting text about a “tax rebate” or “tax refund” they’re supposedly owed. All they have to do is click a link to get their windfall.
Scammers apparently think a carrot will work better than a stick.
Clicking on that link, though, will expose you to identity theft or malware installed on your computer.
Here are some other things to watch for this tax season, according to the Internal Revenue Service and NerdWallet.com:
• “The Taxpayer Advocacy Panel needs more information in order to process your tax refund.” This one comes by email and spoofs the advisory panel, which is a legitimate volunteer board that advises the IRS. The IRS says this is a phishing scheme that seeks personal and financial information.
• “You need to fill out this form as part of a recalculation of your tax refund.” These emails use the IRS logo and can look legitimate. You are asked to click a link to provide personal information, such as Social Security number, driver’s license or other identifying items. Sometimes, the scammers will add an “.edu” email address to target college students.
• “I am with the IRS, and you must make an immediate payment.” Or, “Your identity has been stolen, and you must take immediate steps.” The next thing you’ll undoubtedly hear in either of these is directions to fix the bogus problem via gift card or debit card. The element of immediacy and the manner of requested payment are both giant red flags.
• “This is the Bureau of Tax Enforcement, and we’re putting a lien on your assets.” There is no such thing as the Bureau of Tax Enforcement. Enough said.
To avoid someone filing a bogus return in your name, the state Taxation and Revenue Department is reiterating its advice to file early. If your identity has been stolen – your Social Security number, for example – those committing tax fraud know to file before you do so they can try to claim a refund. And they do so electronically to speed the process.
Nearly 90,000 taxpayers filed reports regarding tax-related scams in 2021, according to the Federal Trade Commission.
And, throughout the year, it’s worth remembering that the IRS will never:
• Demand that taxes be paid without providing the chance to question the appeal or amount owed.
• Call unexpectedly about a refund.
• Threaten to summon law enforcement officers to have you arrested for not paying.
• Send unsolicited email or text messages or use social media to discuss your personal tax issues.
You can always check the status of a tax refund at sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Contact Ellen Marks at emarks@abqjournal.com or (505) 823-3972 if you are aware of what sounds like a scam. To report a scam to law enforcement, contact the New Mexico Consumer Protection Division toll-free at 1-844-255-9210, prompt 5. Complaints can be filed electronically at https://www.nmag.gov/contact-us/file-a-complaint/.
