Avoiding Scams During Tax Season

Every year, as the April deadline for filing tax returns approaches, there is an uptick in scams targeting taxpayers, particularly the elderly. The scams take a variety of different forms, but they share common goals: separating taxpayers from their hard-earned money or stealing their identities. Scammers accomplish this by either getting the taxpayer to make an immediate payment to them or by getting the taxpayer to disclose their personal information, such as social security numbers, bank account numbers, mother’s maiden name or credit card numbers. 

“The key to avoiding a scam is to carefully safeguard all personal information and never rush to make a payment,” said Joy Mullane, graduate tax program director at Villanova University’s Charles Widger School of Law. “Resisting the urge to make a payment or provide information can be particularly challenging when a taxpayer is receiving phone calls or emails from purported government officials who are either threatening dire consequences if a response is not received or, on the flip side, offering an additional refund. A good rule of thumb is to always be suspicious if you receive a call, email, or regular mail asking for personal information or immediate payment.”

Mullane says in all situations, when contacted, the individual should investigate to determine whether the request is a valid one. It’s almost important to see where it’s originating from.   

“When a request appears to be coming from the IRS, it most likely is not valid,” said Mullane. “The IRS does not send unsolicited emails, does not demand immediate payment, does not ask for payment to be made via wire transfers, prepaid debit cards or gift cards (which scammers often request), and does not threaten immediate arrest for nonpayment. On the IRS website, it confirms that they themselves initiate most contacts through regular mail, and provides that if a payment needs to be made it should only be made out to the “United States Treasury” or directly through its website.”

Mullane suggests tips like unlisting a phone number, opting out of unsolicited mail through the Direct Marketing Association’s opt out list and regularly checking credit reports as ways to deter scammers.

It's not just tax scams that everyone should be worried about that Mullane deems important.

• Disreputable tax return preparer scams: Taxpayers should also be careful in choosing a tax return preparer. To help taxpayers verify credentials and qualifications, the IRS has an online directory that includes helpful information for finding the right tax professional (https://www.irs.gov/tax-professionals/choosing-a-tax-professional).
• Social Security/Medicare scams – they have a lot of similar issues and remedies. I, personally, have been recently getting automated voicemail messages left on my cell phone telling me my social security number is about to be suspended. It all sounds so grave and serious; I understand how easily one could succumb.
• In-person visits (someone impersonating an IRS agent): In short, do not let people in your home without verifying their identity and that their badges are real. Real IRS agents carry two forms of I.D.

To speak with Mullane, email mediaexpets@villanov.edu or call 610-519-5152.