NASHVILLE, Tenn. (WTVF) — It’s tax season, and scammers know this is an excellent time of year to strike. Swindlers will pose as tax preparers and IRS agents to steal your refund and identity.
Uncle Sam certainly knows some of our private information. When reporting how much you make, where you work, your bank account information, and, let’s not forget – that all mighty Social Security number – a lot is a risk.
“So, what we're finding in our scam tracker is that people are going online looking for a tax preparer, and people are telling them, hey, I'm a tax preparer, and they're losing their personal information,” said Better Business Bureau's Melanie McGovern.
The Better Business Bureau says -- do your homework if you plan to hire a pro.
“It's always a good idea to use somebody locally that you can see in person," said McGovern. "Check them out on the BBB website. Are they an accredited business? How long have they been in business? Do they have complaints? And if they do, were they resolved?”
All tax pros must have what’s called a Preparer Tax Identification Number. Hire someone you can contact throughout the year, not just during tax season. If you’re offered your refund the day you file, ask a lot of questions. It might be like a small loan with a big fee.
Beware of IRS imposters. An IRS agent will not call, text, email, or contact you on social media out of the blue. They may call you about outstanding debts, but the first contact with you will always be by mail, not phone or email. Scammers will try to scare you with a fake IRS badge number and threaten arrest if you don't pay immediately. Don’t buy it.
“If you do owe taxes, you will get a letter with a unique ID, a number to call," said McGovern. "There are some third parties that do collections on behalf of the IRS. Same thing, though; they won't call you right away. “
Some scammers want to steal your identity to file your return and collect your refund.
“Some people do get refunds in the thousands of dollars. So that's where this scam is so lucrative to the scammer is that they're getting your money, and you're not.”
To avoid tax ID theft, file as soon as you can.
If you file your own, use a trusted software program with a secure internet connection and ensure your computer has updated virus protection.
If you have a simple return, you can file it for free on the IRS website or you might be eligible to file for free on an IRS Free File tax preparation partner site. Generally, people who make $67,000 or less can get their taxes filed for free through the Volunteer Income Tax Assistance Program.
The IRS has a locator tool to help you find a clinic near you.
Do you have more information about this story? You can email me at jennifer.kraus@newschannel5.com.
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