Tax scams are one of the most usual schemes that criminals cook up. These crooks steal your personal information for different intents, ranging from posing as phony IRS agents to taking money for fake charities, tax scams can take many forms and lure hardworking taxpayers all over the United States. With all these happening around, you may be wandering how you could possibly protect yourself and your information from being stolen, and if it already has been stolen, what do you do next. We shall be taking an overview on how to deal with these issues. Most Common Types of Tax Scams Identity thieves are always crafting new ways to steal your tax information, so make sure you’re conversant with the most common types of scams before filing your return. Phony IRS Phone Calls Phony IRS phone calls are the most widespread tax scam from people posing to be an IRS agent. Scammers will often try to cajole you into sending money to settle a fake debt by threatening involvement from law enforcement, such as police or immigration officers. It’s common for these fake agents to request your bank account information or request you send a payment via wire transfer or prepaid gift card. The important thing to bear in mind is that the IRS hardly contacts taxpayers by phone. The real IRS will always mail correspondence to taxpayers through the United States Postal Service and never request payments without the opportunity for the taxpayer to challenge their claims. Also, the IRS will never:

• Threaten to bring in law enforcement if you don’t meet their over-the-phone requests
• Request your credit card or debit card number over the phone
• Call about taxes owed without having first mailed you a bill

If you receive one of these phone calls, ask for the caller’s name, title, and phone number, and then hang up. Call the IRS immediately to report the suspicious phone call. Phishing Emails Just like phony phone calls, phishing is a type of tax scam where you receive emails that claim to be related with the IRS. They usually include links for you to click or files to download that may seem legitimate, but are intended to steal your personal information. Common phishing email subjects include:

• Claiming your tax refund through a clickable link
• Paying outstanding debt by providing your information through a website form
• Fixing a compromised bank account or credit card issue by giving away your personal info

The IRS never notifies taxpayers through email, and you should never open up any attachments in phishing emails in case a hacker has put a computer virus within the attachment. Fake Charities Organizations or individuals pretending as a charity will try to plead for donations from taxpayers in order to avoid paying taxes. Be careful of charities that have names alike to nationally recognized groups, and always ensure to use the IRS Exempt Organization tool to verify whether or not they’re legitimate if you’re suspicious of a charity scam. False Tax Preparers False tax preparers can be one of the most dangerous tax scams. This is because they have access to all of your personal information. Be sure to confirm that they are working with the IRS and to never hire a tax preparer who doesn’t want to see your records or receipts before filing. Tax Shelters Be alert about any person or organization marketing schemes to shield your money from taxation. Abusive tax shelters are prosecuted by the IRS and often steal taxpayer money as part of their illegal activity. Faking Income or Deductions Both of these IRS filling scams emanate from fraudsters who get your information and file a false return. Once the huge return enters your account, they steal it for their own despicable purposes. What to Do If you are a Tax Scam Victim If you mistakenly fall victim to one of these tax scams, immediately report it to the IRS. Ensure to:

• Fill out an IRS Identity Theft Affidavit (Form 14029) that provides all the necessary details for the IRS to open an investigation
• File a report with the police
• Contact your bank and credit card companies to let them know about the fraudulent activities so they can monitor your accounts
• Return any phony refunds that have already been deposited in your bank account to the IRS
• File a complaint with the Federal Trade Commission (FTC)

As with many other matters, the IRS can move meticulously with cases of identity theft. If you report tax fraud to the IRS and the scam is taking a vital financial impact on you, contact your Taxpayer Advocate Service to help settle your case more quickly. How to Prevent Tax Scams While there’s no certain way to stop IRS tax scams absolutely at the moment, there are several procedures you can take to avert it from happening. Before tax season rolls around, make sure you’ve enhanced your defenses against scammers by:

• File your return as early as you can. Thieves won’t be able to steal your refund if you already have it
• File taxes online through a protected Internet connection. The best device for e-filing is your personal computer and not a device that uses public Wi-Fi, such as a library computer.
• Use strong passwords to secure your information. If you have difficulty remembering your passwords, write them down in a journal instead of saving them digitally where hackers could discover them.
• Hire a legitimate tax preparer that is enrolled with the IRS. Always request their IRS Preparer Tax Identification Number to ensure they are not fake. For CPAs, check your State Board of Accounting to make sure they are qualified.
• Hang up on suspicious phone calls and ignoring emails that look like they may be a phishing scam.
• Keep track of tax documents in a secure manner. Either digitally store copies of all your paperwork on a portable hard drive or organize physical copies in a filing cabinet.