Keep Your Tax Refund Out of Scammers’ Hands

Ah, tax season: the annual festival of forms, deadlines, and, unfortunately, scammers. Every year, fraudsters ramp up their tricks, targeting taxpayers with fake IRS calls, phishing emails, and shady promises of bigger refunds. And they’re not just trying schemes to snag your tax refund – they want your personal information, too.

But here’s the thing: you’re smarter than they are and don’t have to fall for their schemes. With a few quick tips and some smart moves, you can keep your refund safe and stop scammers in their tracks.

Common Tax Scams to Watch For

1. Fake IRS Calls

When the “IRS” calls claiming that you owe back taxes, don’t panic – it’s almost certainly a scam. Fraudsters love to play the fear card, threatening jail time, deportation, or frozen accounts if you don’t pay immediately.

Red Flags:

• • Demands instant payment over the phone.
  • Threats of arrest or legal action.
  • Requests for payment via gift cards, wire transfers, or prepaid debit cards.

2. Phishing Emails and Texts

“Verify your tax info here to avoid delays!” Sound familiar? Scammers send fake emails or texts that look official, hoping you’ll click on a link or download an attachment. Once you do, they can steal your personal info or infect your device with malware.

Red Flags:

• • Unfamiliar email addresses or phone numbers.
  • Poor grammar or typos.
  • Urgent language like “Act Now!” or “Refund on hold.”

Not every tax preparer has your best interests at heart. Some scammers pose as professionals, promising bigger refunds or charging sky-high fees while stealing your personal information.

Red Flags:

• • Promises of unusually large refunds without reviewing your financial details.
  • Requests to sign blank or incomplete tax forms.
  • Refusal to sign your return with their Preparer Tax Identification Number (PTIN).

4. Identity Theft

One of the sneakiest scams is filing a tax return in your name to claim your refund. You might not even know it’s happened until your real return gets rejected.

Red Flags:

• • IRS notices multiple returns filed under your name.
  • Tax forms for income you didn’t earn.
  • Changes to your IRS account you didn’t make.

How to Protect Yourself

Tax season doesn’t have to be a scammer’s playground. With a few proactive steps, you can keep your refund and personal info safe.

• Verify communications. The IRS initiates most contacts by regular mail – not by phone call, email, text, or DM on social media. However, there are certain situations where the IRS may visit a taxpayer’s home or business. These include cases where a taxpayer has an overdue tax bill, a delinquent tax return, or has missed an employment tax deposit. But even in these instances, taxpayers typically receive multiple notices and letters from the IRS in the mail first.
• File early. The sooner you file, the better. Scammers often file fake returns early in the season to beat you to your refund. By filing your taxes as soon as possible, you can block them from using your Social Security number to submit a fraudulent return. Plus, it gives you peace of mind knowing your return is secure.
• Choose trusted tax preparers. When choosing someone to help with your taxes, verify their credentials, like their PTIN, and make sure they’re a certified professional. Beware of tax preparers who promise unusually large refunds or ask you to sign blank or incomplete forms. Always review your return carefully before submitting it – it’s your name on the line if something’s wrong.
• Secure your information. Keep your personal data locked down. Don’t send sensitive details like Social Security numbers or account information via email or text – it's too easy for scammers to intercept them. Use secure, encrypted channels whenever possible. If you’re filing taxes online, only use trusted websites like TurboTax or H&R Block, and make sure your Internet connection is secure (no public Wi-Fi). Also, keep paper tax documents in a safe place to prevent physical theft.
• Report suspicious activity. Think you’ve been targeted by a scam? Don’t ignore it. Report any fake IRS communications or tax scams to phishing@irs.gov and your state tax agency. If you believe your identity has been stolen, file a report at identitytheft.gov, report it to the IRS, and consider placing a fraud alert on your credit report. Taking action quickly can help minimize any damage and prevent further issues.

Tax season doesn’t have to mean dealing with scammers. By staying alert, recognizing warning signs, and taking steps to secure your information, you can protect your refund and your peace of mind. If you think you’ve been targeted by a tax scam, do not ignore it. Report suspicious activity to PSECU at abuse@psecu.com and ReportFraud.ftc.gov.

Visit our Fraud Prevention page for more resources to help you stay ahead of fraudsters this tax season.