Tax related scams on the rise this tax season – how not to a victim
The tax season can be a difficult time for both businesses and individuals alike. However, this year adds an additional challenge as there is an increased number of tax scams being reported targeting those who are filing their taxes. Whether this is your first time filing or you’ve been around the block multiple times, it’s important to know what threats exist so you don’t become a victim. In this blog post our experienced advisors, analysts, planners and consultants will explore some of these common types of fraud and how to protect yourself from them in order to successfully navigate the 2020 tax season unscathed.
Overview of common tax related scams
As tax season approaches, it’s important to be aware of the common tax-related scams that are out there. These scams range from phony emails claiming to be from the IRS to identity theft through fraudulent tax returns. It’s important to remember that the IRS will never contact you through email or social media and that any requests for personal or financial information should be treated with suspicion. Additionally, it’s wise to use caution with tax-preparation services that promise large refunds or offer to file your taxes for an unusually low fee and do not provide further information about filing dividends and other tax items. By keeping these tips in mind and staying vigilant, you can protect yourself from falling victim to a tax scam.
Signs of a potential scam to watch out for
With the rise of online transactions, it’s important to be vigilant against potential scams. One red flag to watch out for is when a sale or offer seems too good to be true. Scammers often use this tactic to lure unsuspecting victims into their traps. Another warning sign is when the seller insists on payment through unconventional channels, such as wire transfers or gift cards. Legitimate sellers will usually accept payments through trusted methods such as credit card or PayPal. It’s also wise to be cautious of unsolicited emails or phone calls from individuals claiming to be from a legitimate company asking for personal or financial information. By staying alert and educating ourselves on these common tactics, we can better protect ourselves from falling victim to scams.
How to protect yourself against tax fraud
Tax fraud is a serious crime that can wreak havoc on your finances and leave you with a hefty bill from the IRS. Fortunately, there are several steps you can take to protect yourself. First and foremost, be wary of unsolicited phone calls or emails claiming to be from the IRS or other government agencies. These are usually scams intended to steal your personal information or money. Additionally, keep copies of all important documents, such as tax returns, bank statements, and investment records, in a secure location. Finally, consider working with a reputable tax professional who can help you navigate complex tax laws and identify potential red flags. By taking these precautions, you can help safeguard your financial well-being and avoid falling victim to tax fraud.
Reporting suspicious activity and what happens next
In a society that values safety and security, it’s important to be aware of your surroundings and report any suspicious activity. Whether it’s an unattended bag at the airport or an individual acting oddly in a public space, reporting suspicious activity can potentially prevent harm and save lives. But what happens next once you report it? Depending on the severity of the situation, law enforcement officials may investigate the activity further or simply keep an eye out for any additional red flags during tax time. It’s important to remember that reporting suspicious activity is a proactive step in ensuring public safety, and should be taken seriously by all members of a community.
Resources available to taxpayers to help them stay informed
As taxpayers, it’s important to stay informed about the resources available to us. The Internal Revenue Service (IRS) offers a range of resources designed to help individuals stay up-to-date on tax-related information. One such resource is the Taxpayer Advocate Service (TAS), which offers help and guidance to taxpayers who are experiencing financial hardship or dealing with other tax-related issues. Additionally, the IRS website provides a wealth of information on tax-related topics such as filing requirements, tax credits and deductions, and taxpayers’ rights. By taking advantage of these resources, taxpayers can take control of their personal financial futures and stay informed about the latest tax-related news and updates.
Tips on ways to safely pay your taxes online
Paying taxes online has become increasingly popular in recent years, but it’s important to do so safely and securely. To ensure your personal information is protected, there are several tips to follow. First, only use secure websites that have a URL beginning with “https” and have a lock symbol in the address bar. Second, use strong and unique passwords and never use public Wi-Fi while making online tax payments. Third, keep your computer and antivirus software up-to-date to prevent any potential attacks. Lastly, always double-check the legitimacy of any email, text message, or phone call claiming to be from the IRS before providing any personal information. By following these tips, you can confidently and securely pay your taxes online.
In conclusion, it is important to be aware of the different types of tax-related scams that exist and always stay vigilant. Taking precautions such as choosing a secure payment method and reporting any suspicious activity are beneficial in helping you protect your taxes. Additionally, using resources like the IRS website can help you remain informed on ways to protect yourself against fraud. One way to avoid these pitfalls is to work with a personal wealth manager who can direct you to reliable tax processing resources. It is important to note that knowing how to identify signs of potential scam activities can not only help you avoid being a victim, but could also potentially save you time and money in the long run. So if you think you may have encountered a scam or have become a victim, don’t hesitate to report it – your vigilance may help prevent someone else from becoming victimized by fraudsters.
