Tis the Season… for Tax Scams

There are only a few things for certain, and one is that tax season brings an increase in tax-related fraud and scams.

Back Taxes Scam

Have you ever received a telephone call, claiming you owe back taxes, or from a company stating they are from the “Tax Resolution Oversight Department”? If someone calls you out of the blue offering to help fix a tax issue – hang up, it’s a scam.

Here’s How the Scam Works:

• It starts with an unsolicited call from an official-sounding (but fake) government agency, such as the “Tax Resolution Oversight Department”. They say you haven’t paid your taxes and will connect you with a “Tax Resolution Officer” who can check your credit and help you apply for a “liability reduction program”. Unfortunately, those programs or offices do not exist within the government, and that’s your cue to hang up immediately.
• Other scammers will leave messages asking you to call back right away, or that this is an “urgent message”. It’s all part of the story to get you to release personal information to them, like your Social Security Number, or get you to pay an upfront fee for tax relief.

Stay Vigilant!

• Never give an unexpected caller personal or financial information. It’s most likely a scammer looking to take advantage of you, steal your identity and deplete your bank accounts.
• Do your research. Hang up and contact the IRS directly for trustworthy information about your situation. Visit IRS.gov to find their actual phone number, not one that a scammer provides.

IRS Flash Drive Scam

The IRS (Internal Revenue Service) flash drive scam combines physical mail delivery with digital exploitation. Scammers use the public’s knowledge of IRS communications while leveraging the agency’s recent shift toward digital processes to create fraudulent correspondence.

Here’s How the Scam Works:

• Scammers identify taxpayers who owe money or filed returns, often using data from previous breaches or public records.
• Fraudulent notices are mailed with official-looking IRS letterhead and formatting, creating an appearance of legitimacy.
• A flash drive is included in the mailer, with claims that it contains important tax documents, refund information or audit materials.
• When the flash drive is inserted into a computer, the drive automatically installs malware designed to steal personal and financial information.

Stay Vigilant!

• NEVER insert an unknown flash drive into your computer.
• If you receive a suspicious mailing like this, please ask your tax professional before taking action.

Remember, you can help prevent fraud by reporting it. You can report suspicious emails, texts, social media accounts, phone calls, and letters to help shut down scams and fraudsters trying to trick people into sharing their information.