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Biggest Tax Scams

Don't Be a Victim of These 5 Tax Scams

Tax day is another way for fraudsters to scam you out of your money. The IRS releases a list of the top schemes people fall for every year, and here are some of the most common ones.

1. Identity Theft

The IRS has been finding a lot of identity theft cases in which the fraudster will file a return with a stolen identity and illegally claim a refund. The IRS has tips on what you can do to avoid this and solutions if you're currently facing this scam.

2. Telephone Scams

Some are receiving calls from people who claim to be working for the IRS in order to steal identities or money. If you received a call like this, don't give your information, and call the IRS directly at 1-800-829-1040 to resolve this.

3. Phishing

Keep in mind that the IRS doesn't contact people by email to request private information, so don't be fooled by any emails you see. This goes for all forms of electronic communication, such as texts and social media, as well.

4. Tax-Preparation Scammers

There are scammers out there who lure in victims by guaranteeing huge refunds. However, even if someone else is filing your return, the IRS says you're still legally responsible for it — you can end up being facing penalties for filing false claims and receiving false refunds.

5. Fake Charities

Watch out for fake charities, and make sure you donate to recognized charities so you can take advantage of the deduction come tax time. There are also other scammers that pretend to be working with the IRS to help disaster victims file for taxes, so watch out for them, too.

Source: Shutterstock
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