Scammers are very creative, cunning, and strikes anytime they wish. They even found innovative ways to steal your information and money during tax paying season, though this occurs mainly throughout the whole year. In order to not fall victim with these crimes, here are some ways to avoid tax scam pitfalls.
1. File Early and Properly
When you file later than intended, someone can easily use your name and information first. This is what we call identity fraud. The scammers gain money by getting your refund for themselves. So to prevent this, all you have to do is file on time and with the proper documentation. If your name is already out there, no one can steal it, as well as the refund you will get.
2. Do Not Give Out Your Information
Once the scammers have your name and Social Security Number, you are allowing them to blackmail you, steal your money, and access your other information. Most often than not, your personal data can be obtained by means of a simple phone call. Frauds will tell you that they are from the IRS and dupe you into thinking that you are in some kind of trouble. You can protect yourself by simply not believing this.
3. Beware Of Phishing
Ever get one of those emails that have a link? Well scammers nowadays are also using that to con people. They will send you a legit looking email that will make you think that it came from the IRS. Once you click on that link, your private information is as good as theirs. While the email looks convincing, keep in mind that the IRS does not contact people via such means.
4. Report Suspicious Activities
Any suspicious activities should be reported to the IRS immediately so it can be dealt with. Scammers may fail, but they will keep trying until they have successfully finished the job. Even if you were not conned, some other person may fall victim.
Tax scams can be avoided if you are educated in the subject matter and know what proper steps to take. Remember that you are going to pay the fine and may even get jail time if you allow yourself to be fooled, so take the necessary precautions to prevent this.