Watch Out For Tax Scams

With tax season just around the corner, the Internal Revenue Service is urging taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud. During the tax season, there is an increase in scams that target residents via email, phone, and online.

One of the most common scams is an automated call where scammers leave urgent callback requests telling taxpayers to settle their tax bill. These fake calls generally claim to be a last warning before legal action is taken. Some of these calls could even come from a live IRS impersonator. They may demand payment on prepaid debit cards, iTunes and other gift cards, or wire transfer. The IRS says that these payment methods are a clear indication of a scam. Another scam to be aware of is phone calls regarding payment for Federal Student Tax to parents or student. They may even threaten to have the police arrest the student if not payed.

The IRS will never call to demand immediate payment using a specific payment method, they will usually mail you a bill if you owe any taxes. The IRS will never threaten to immediately bring in local police for non payment, nor will they demand that you pay taxes without giving you an opportunity to question or appeal the amount they say you owe. Finally, the IRS will not ask for credit or debit card numbers over the phone. If you get a suspicious call, do not give out any information and hang up immediately. If you think you may owe taxes call the IRS directly at 800-829-1040.