As tax season approaches, be aware of potential scams that threaten your hard-earned money. Scam artists often view seniors as easy targets for tax fraud due to their increased vulnerability and potential lack of familiarity with ever-evolving technology. Let's look at the most common tax scams that target seniors and households with seniors, and discuss simple tips to help avoid them.
The Most Common Tax Scams
Here's how scammers usually operate:
IRS Impersonation Phone Scams
One of the most common tax scams targeting seniors involves fraudsters posing as IRS agents over the phone. These scammers typically use aggressive tactics and threats of legal action to pressure seniors into making immediate payments for alleged tax debts. To identify a potential fraudulent call, be aware of the following signs:
- The caller demands immediate payment and refuses to allow time for verifying the information.
- The caller threatens legal action, arrest, or deportation if payment is not made immediately.
- The caller asks for personally identifiable information (SSNs, bank account numbers) or payment via gift cards or wire transfers.
If you receive a suspicious call, hang up immediately without providing any information. The IRS will never initiate contact with taxpayers by phone to demand immediate payment or ask for your personal information.
Email Phishing Scams
Phishing scams involve sending fraudulent emails that appear to be from legitimate sources, such as the IRS, tax preparers, or financial institutions, in an attempt to gain access to sensitive information. To spot a phishing email, look for these dead giveaways:
- The email contains grammatical errors or an unprofessional tone.
- The email requests personal or financial information, such as passwords or account numbers.
- The email contains links to unfamiliar or suspicious websites.
If you receive a suspicious email, do not click on any links, download attachments, or respond with any information. Instead, report the email to the IRS at phishing@irs.gov for further investigation.
Fraudulent Tax Preparation Offers
Some scammers pose as tax professionals to commit fraud or identity theft. To avoid falling victim to a fraudulent tax preparer, check their credentials and verify that they have a valid Preparer Tax Identification Number (PTIN) through the IRS's online directory. Be wary of preparers who promise large refunds, charge fees based on a percentage of your refund, or refuse to sign your tax return.
Identity Theft and Fraudulent Tax Return Filings
Identity theft is a growing concern for all taxpayers, but seniors can be particularly vulnerable. Scammers may use stolen personal information to file false tax returns and claim fraudulent refunds. Signs that your identity may have been compromised include receiving notices from the IRS about tax returns you did not file or income from unknown sources. Watch out for unauthorized transactions on your bank or credit card statements. If you suspect you may be a victim of identity theft, contact the IRS Identity Protection Specialized Unit at 1-800-908-4490 and file a report with your local police department.
How to Stay Safe From Tax Scams
To avoid falling victim to common tax scams that target seniors, stay updated on common scams and warning signs. Remember that the IRS will never contact you by phone or email demanding immediate payment or personal information. Monitor your financial accounts and credit reports regularly for signs of fraudulent activity. Report any suspected scams to the appropriate authorities, such as the IRS and local law enforcement.
What to Do if You've Been Scammed
If you or a senior loved one has been affected by a tax scam, take the following steps:
- Report the scam to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
- File a complaint with the Federal Trade Commission (FTC).
- Work with financial institutions, credit bureaus, and professionals to recover from any financial losses and credit rating damage, and to protect against future fraud.
We're Here For You
Protecting yourself from common tax scams that target seniors requires vigilance and education. By staying informed and taking proactive steps, you can help minimize the risk of falling victim to these malicious schemes.
We're not tax pros, but we're here to support you if you need assistance with daily tasks, self-care, and even light housework! If you live in Tulsa, McAlester, Broken Arrow, or Sand Springs and are seeking assistance with senior care, contact us at Senior Helpers Tulsa for compassionate and professional support.