RECOGNIZING AND AVOIDING TAX SCAMS: A GUIDE BY CAMPAIGN FOR WORKING FAMILIES

Tax season is when many individuals and families seek help with their taxes, making it a prime time for scammers to exploit the unsuspecting. At Campaign for Working Families (CWF), we are committed to protecting you from tax scams. Here’s a guide to help you recognize the telltale signs of tax scams and learn how to avoid them.

Common Tax Scams to Watch Out For

  1. Unsolicited Contact: One of the most common signs of a tax scam is receiving unexpected communication from someone claiming to be from the IRS or another tax authority. This can come via phone, email, text, or social media. Remember, the IRS typically contacts taxpayers through official mail first.
  2. Pressure Tactics: Scammers often create a sense of urgency, threatening legal action or arrest if you don’t act immediately. The IRS will not demand immediate payment or threaten you with arrest without due process.
  3. Requests for Personal Information: Be wary of anyone asking for your personal information, such as your Social Security number, bank account details, or credit card numbers. The IRS will never ask for sensitive information via email or phone call.
  4. Unusual Payment Methods: Tax scammers may insist on payment through unconventional methods such as gift cards, wire transfers, or cryptocurrency. The IRS only accepts payment through traditional methods like checks, credit cards, and direct transfers from bank accounts.
  5. Suspicious Links and Emails: Phishing emails and fake websites are commonly used to steal personal information. Look for emails with urgent messages, grammatical errors, or suspicious links. Always verify the sender’s email address and avoid clicking on links from unknown sources.

    How to Protect Yourself from Tax Scams

    1. Recognize IRS Communication Methods: The IRS primarily contacts taxpayers through written notices sent by mail. Be skeptical of any phone calls, emails, or texts claiming to be from the IRS.
    2. Do Not Share Personal Information: Never give out your personal information or financial details to unsolicited callers or emails. If unsure, ask for a call-back number and verify it independently.
    3. Use Official Channels: Always rely on official IRS resources and trusted tax preparation services like CWF for your tax needs. Our free tax preparation services are designed to help you navigate tax season safely and accurately.
    4. Report Suspicious Activity: If you suspect you’ve encountered a tax scam, report it immediately to the IRS at IRS Impersonation Scam Reporting or contact us at CWF. Your report can help protect others from falling victim to scams.
    5. Educate Yourself: Stay informed about the latest scams by visiting the IRS website or other reputable sources. Knowledge is your best defense against scammers.

    Stay Informed and Stay Safe

    At Campaign for Working Families, we’re dedicated to helping you navigate tax season safely and efficiently. By staying informed about common tax scams and taking proactive steps to protect yourself, you can avoid falling victim to fraudsters.

    For more information and to access our free tax preparation services, visit CWF. Remember, when in doubt, always verify the legitimacy of any tax-related communication and seek help from trusted sources.