Beware of These 6 Tax Scams—And How to Stay Safe

Tax season is here, and while you're focused on getting the best refund possible, scammers are focused on stealing your money and personal information. They use sneaky tactics, impersonate the IRS, and take advantage of recent news to trick unsuspecting taxpayers.

The good news? You can protect yourself! Here’s a breakdown of the most common tax scams and how to avoid them.

🚨 1. Economic Impact Payment (Stimulus) Scams

Scammers love to prey on confusion, and they’re using the latest IRS stimulus payment announcement to their advantage.

✔️ The IRS recently announced automatic payments for certain taxpayers who didn’t claim their Recovery Rebate Credit for 2021.
✔️ Scammers are impersonating the IRS, contacting people via text, email, phone, and social media—claiming they can help process these payments.
✔️ They’ll ask for your bank account details or personal information—don’t fall for it!

💡 How to stay safe: The IRS will NEVER call, text, or DM you. If you qualify for a payment, it will be sent automatically via direct deposit or check. Always verify IRS communications at IRS.gov.

📞 2. Fake IRS Phone Calls

Scammers may call pretending to be the IRS, using fear tactics like:

🚨 Claiming you owe back taxes and must pay immediately.
🚨 Threatening arrest, lawsuits, or driver’s license suspension if you don’t comply.
🚨 Demanding payment via gift cards, wire transfers, or cryptocurrency (a clear red flag!).

💡 How to stay safe: The IRS does not call people out of the blue. If you get a suspicious call, hang up and report it to the IRS at IRS.gov.

📧 3. Phishing Emails & Fake IRS Websites

Phishing emails look real but are designed to steal your info. They often:

📌 Include IRS logos and official-looking language.
📌 Ask you to "verify" your Social Security number or bank info.
📌 Contain urgent warnings or offer unexpected refunds.
📌 Link to fake IRS websites that capture your login details.

💡 How to stay safe: Never click on suspicious links. The IRS does not email taxpayers requesting personal information. When in doubt, go directly to IRS.gov.

📜 4. Fake 1099 Forms & Refund Scams

Some taxpayers are receiving fake 1099 tax forms claiming they won lottery winnings, settlements, or refunds they never applied for.

📌 Scammers convince people to file false claims to get a bigger refund, then steal their personal info in the process.
📌 If you get a 1099 form for money you didn’t earn, it’s likely a scam!

💡 How to stay safe: Contact the IRS or the issuer directly before taking action on any unexpected tax forms.

🛑 5. "Ghost" Tax Preparers

Not all tax preparers are legitimate. Some fraudsters offer to file your taxes but disappear after charging you hefty fees—or worse, they steal your refund.

📌 Red flags include:
🚩 No signature on your return (legit tax pros sign as "preparers").
🚩 Promises of huge refunds that sound too good to be true.
🚩 Charging fees based on your refund amount (a major IRS violation).

💡 How to stay safe: Use a reputable, IRS-certified tax preparer. Check their credentials at IRS.gov.

💻 6. Social Media Tax Scams

Scammers are using TikTok, Facebook, and Instagram to spread fake tax advice—often encouraging people to file false claims for credits they don’t qualify for.

📌 If you see a "hack" that promises a huge refund, it’s likely a scam.
📌 The IRS is cracking down on fraudulent claims, and you could be penalized for filing false information—even if you were tricked.

💡 How to stay safe: Get tax advice from trusted professionals, not social media influencers.

🔒 Final Takeaway: Stay Alert & Protect Yourself!

🚨 The IRS will NEVER:
❌ Call, text, or email asking for personal info.
❌ Demand immediate payment over the phone.
❌ Threaten lawsuits or arrest.
❌ Ask for gift card or crypto payments.

Tax season is stressful enough—don’t let scammers add to it! If something feels off, trust your instincts and double-check with the IRS.

Questions about tax safety? Let’s connect! Whether you're buying a home, selling one, or just want to keep your finances secure, I’m here to help. 🏡💰✨


Original article: 6 Tax Scams and How to Avoid Them | Taxes | U.S. News

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