We at B&J Bookkeeping in Houston are always looking to report the latest in tax related scams. We realize that tax return time is one of the busiest times of the year for these fraudsters. Even the IRS is aware of these types of scams and puts out a yearly collection of the worst of the worst. Some of these will sound familiar while others ring brand new to us. The regular scams have been disturbingly consistent and lead us to believe they are popular because they work. However, tax scammers have updated these tax return scams for 2017. Here are our top 5.
1. The IRS Phone Call Scam
These phone calls are made by scammers who impersonate the IRS and threaten whoever is on the other end of the phone. These threats can be in the form of massive fees and even prison time should they not pay up over the phone right then and there. This ongoing threat is often targeted at seniors and immigrants. The scammers will go a step further and threaten these people with confiscation of Social Security checks, deportation, and just about anything that will scare the them into reaching for a credit card. The one spot of good news is that late last year a huge call center in India responsible for many of these types of calls was raided and shut down. This doesn’t mean that this sort of scam has been stopped. We continue to urge all our readers to not engage with anyone over the phone claiming to be from the IRS. They make initial contact by mail, not phone.
2. The Phishing Scam
Wise to the fact that taxpayers are on to the IRS phone call scam, some of these fraudsters have taken to email phishing. This is where they will send you an official sounding email from the IRS, bank, credit card, or other official sounding agency. They ask you to take some sort of action regarding an urgent matter regarding your taxes, refund, etc. This is action is generally followed by asking that you click a link. This link will then open you up to a host of intrusions that can lead to malware installed on your computer, the theft of your personal information, and worse. Again, the IRS will not make initial contact via email, and scammers can make their email appear to have an “irs.gov” address. Do not click.
3. Insanely Large Tax Refund Promise
Anyone who promises you a huge or inflated tax refund should be approached with caution. An experienced professional can do lots to get you the best refund possible. However, it is impossible for one person or business to guarantee they can get you more than anyone else. This is a clear sign that they may be willing to break a few tax return rules, which will ultimately cost you more than it will save you. People who perform these tax return scams will ask you to sign a blank return, promises your large tax refund before even looking at your papers, and may even charge you a percentage of this large return.
4. Tax Return Preparation Fraud
Every year we are visited by our unfortunate neighbors who were victims of a tax return scam in the form of fraudulent tax return preparers. While the majority of professional tax professionals provide honest service, crooked ones look to take advantage of people’s trusting nature. They use your tax returns to commit refund fraud (ie by sending your check to their own account). They can also steal your identity theft, outright file your return incorrectly. In the meantime, they pocket their preparation fees, and other related scams. Be sure to check out your tax return pro via references. Be sure to also check Google, Yelp, etc. to avoid falling victim to one of these tax scams.
5.More Tax Return Scams for 2017
To see the list for yourself, go to the IRS Dirty Dozen tax scams (updated for 2017). They include items such as fake charities, excessive claims for businesses, falsifying income, and others.
Tax Return Scams for 2017 in Houston
If you would like to protect yourself from tax return scams or need help in bookkeeping and live in the Houston area, contact us.