Tax Fraud

Tax-Related Identity Theft

Identity theft is the number one consumer complaint and the crime can easily escalate during tax season. The IRS is aware of several identity theft scams involving taxes or the IRS. In one, tax preparers allegedly used client information, such as Social Security numbers and financial data, to commit identity theft. In another, bank customers received fictitious letters and purported tax forms in an attempt to trick them into disclosing personal and banking data. These scams underscore the need to always be careful about revealing personal and financial information (in and out of tax season) and to make sure you select a reputable tax professional.

Tax Refund Phishing Scams

The Internal Revenue Service has issued a alert regarding an Internet phishing scam where consumers get an email informing them of an unclaimed tax refund. The email will look like it's from the IRS and it will ask whoever receives it to click a link which goes to a page where they can submit personal information such as their Social Security number and credit card information. The email may even say that the only way to claim the refund is by clicking the link in the email. This is a classic "phishing" scam meaning an unsolicited email directs you to submit your personal financial data. If you fall far it, a criminal can access your financial accounts to drain your funds, run up credit card bills, apply for loans or new credit cards and even file fraudulent tax returns. I thinks it's easy to say that if you fall for this one you'll be in a world of hurt.

1099 Form Scams

Another identity theft ploy used by identity thieves involves sending out official looking 1099 non-payroll forms via email. You'll be asked to click a link in the email and you'll be transported to the IRS site to fill in badly needed information. The site you arrive at will look like the real IRS site but under closer srutiny you may notice that there's a problem with the URL or web address.

Marketing Promotions

Some of the emails you may receive won't be from the IRS and won't be a phishing scam either. Some devious marketers are sending out emails designed to grab your attention since they appear to be tax-related. However, once you take a look it may be nothing more than a home mortgage application, new car loan offer or a way for you to consolidate your debt. These aren't your biggest worry in terms of fraud but they can certainly be annoying.

Some tips regarding the IRS refund and Phishing scams

The IRS does not ask anyone for personal or financial information via unsolicited email
Taxpayers do not have to complete special forms to recieve their tax refunds
Do not open attachments from emails purporting to be from the IRS because they may contain malicious code that could infect your computer
Contact the IRS directly at 800-829-1040 to determine if the IRS is trying to reach you about a possible tax refund

Keep in mind that as April 15 draws closer the frequency of the phishing scams increases.

Tax Fraud

Tax-Related Identity Theft

Tax Refund Phishing Scams

1099 Form Scams

Marketing Promotions

Some tips regarding the IRS refund and Phishing scams

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