Consumer Watchdog: Holiday scams are out, tax scams are in

With the whirlwind of the holiday season out of the way, another season is about to get into full swing.

Yep, it’s tax time.

And clever cyber predators are still lurking — tax-related scams are becoming increasingly common. In addition to the phone scam in which callers impersonate IRS agents, in 2016 the IRS reported a 400 percent increase in phishing and malware incidents.

Identity theft is also a common problem, which the federal government hopes to prevent this year as the PATH Act takes effect. One provision of the act delays certain individuals’ refunds in order to review and prevent fraudulent filers from stealing taxpayers’ refunds.

Last year, the IRS launched its Security Summit in order to create more awareness about tax scams, identity theft and other issues facing taxpayers. As a result of its efforts, the IRS stated the number of reported incidents of identity theft were cut in half during the 2016 tax season compared to the 2015 season.

IRS.gov outlines all these potential scams and what taxpayers, businesses and tax professionals can do to protect themselves. Here are some tips to keep in mind.

1. Know how the IRS will contact you.

The IRS will not contact you via email, text message or social media, according to IRS.gov. The agency would also never threaten someone or demand payment over the phone. If this happens to you, hang up, take note of the number and report the incident to the police. Do not give out any financial information over the phone.

2. Make sure e-file sites you use are legitimate.

With e-file options rising in popularity, it’s important to make sure you’re using a secure program to protect against identity theft. Be careful what you click, and always check the URL of a website before proceeding with entering your sensitive data.

3. Look out for bogus tax-related emails.

The IRS website also warns of emails asking recipients to “Update your IRS e-file,” and the websites mentioned in the email are created to mirror the IRS site. Any links or attachments in the emails may lead to viruses or malware. The agency asks anyone who sees or becomes victim to this kind of activity to report it to [email protected].

For more information about IRS-related scams and how to protect yourself, visit the IRS.gov tax scam page at http://bit.ly/2bzWiYm.

Tax scammers have invented increasingly brazen ways to defraud consumers and even tax preparers. You can fight back by knowing the signs of fraudulent communications, reporting any you receive to the right authorities and staying up to date on your tax situation.

https://www.timesleader.com/wp-content/uploads/2017/01/web1_114603154-37890546f1cd4e56994c313582b951cd-1.jpg.optimal.jpgTax scammers have invented increasingly brazen ways to defraud consumers and even tax preparers. You can fight back by knowing the signs of fraudulent communications, reporting any you receive to the right authorities and staying up to date on your tax situation. Susan Walsh File Photo | AP Photo