How to Recognize and Report Latest Tax Scam Techniques
The Internal Revenue Service (IRS) has recently alerted taxpayers of an increase in tax scams, predominantly through email and text messages. These messages are primarily aimed at securing personal information through the promise of tax refunds and other deceptive offers.
Escalating Summer Tax Scams
One common scam in recent circulation involves claims about the third round of Economic Impact Payments, a topic that has been prevalent since 2021. Although the official stimulus payments were finalized over two years ago, the fraudulent scheme has persisted and evolved over time, tricking unsuspecting taxpayers with deceiving messages riddled with spelling errors and factual inaccuracies.
The scam involves an email message claiming the status of the “Third Round of Economic Impact Payments” is available. These emails attempt to entice people to click on a link, misleading them to a website designed to harvest personal information.
The Allure of False Employee Retention Credit Claims
Another prevalent scam observed by the IRS involves false Employee Retention Credit (ERC) claims. The ERC, also referred to as the Employee Retention Tax Credit or ERTC, is a credit related to the pandemic, with specific qualifying criteria.
Scam promoters use a variety of means, including online, social media, radio, unsolicited phone calls, and emails to lure people into claiming the ERC improperly. These promoters often boast about their company’s legitimacy and fail to discuss essential eligibility factors and tax implications. If an ERC is claimed inaccurately, it must be paid back, possibly with penalties and interest.
Other Active Scams to Watch For
Other active schemes include the “Claim your tax refund online” scam, which plays on the tempting idea of free or overlooked money and suggests people have missed getting their tax refund. Yet another scam involves text messages from seemingly official sources offering help with alleged tax return problems. The text messages, replete with misspellings and factual inaccuracies, ask recipients to click on a link.
Additionally, the IRS has warned of a new scam involving a misleading mailing that attempts to convince people they are owed a refund. The mailing arrives in a cardboard envelope from a delivery service and includes a notice about an “unclaimed refund.”
What to Do if You Suspect a Scam
If you suspect you have received a scam message, you should forward the email to phishing@irs.gov. If you believe you have fallen victim to such a scam, report the email to the same address, file a complaint with the Treasury Inspector General for Tax Administration, and visit IdentityTheft.gov and Identity Theft Central.
Staying Safe
The IRS advises taxpayers and tax professionals to stay alert to fake communications from scammers posing as legitimate tax and financial organizations. The IRS never initiates contact with taxpayers via email, text, or social media regarding a bill or tax refund. As a precaution, never click on unsolicited communications claiming to be the IRS, as this may be a ploy to install malware or ransomware on your system.
If you receive messages that seem to be from friends or family, but you suspect they might be compromised, always verify the sender’s identity through an alternate communication method. Utilize tools such as the Federal Communications Commission’s Smartphone Security Checker to protect against mobile security threats. By staying vigilant and informed, you can safeguard your information against these emerging tax scams.
Join the conversation at @coolbruthas, where we dissect cybersecurity threats and share tips to stay vigilant. Remember to always Stay Fresh, Stay True, and stay informed to navigate safely through the digital world.
