5 Most Common Tax Season Scams to Avoid – Nevada Ranks No. 30 Losing $1.6 Million

1)        TurboTax: Fraudsters send emails pretending to be from TurboTax, asking recipients to update their account information or claiming there is an issue with their tax return. In another version, fake websites that mimic the official TurboTax website trick victims into sharing personal and financial information.

How to Avoid: Avoid third-party websites or advertisements offering TurboTax at a discounted price. Go directly to turbotax.intuit.com to use their software.

2)        Fake Accountant: They impersonate a CPA and promise unusually high tax refunds at exceptionally low prices. Of course, payment for these services are due up front, and once the “accountant” gets paid and has your personal information they disappear.

How to Avoid: Perform a reverse search to confirm the identity of the tax preparer using their email, phone number, or photo. If something seems too good to be true, it is.

3)        Spoofing IRS Phone Call: Victims receive a ‘spoofing’ phone call which makes the number appear as though it is coming from the IRS. They claim the victim owes money for unpaid taxes and threatens to fine them or arrest them if it is not paid.

How to Avoid: Visit IRS.gov directly to make any payments.

4)        Unclaimed Refund: Emails with a fake IRS logo tell victims they are owed more money and can immediately claim their tax refund by clicking a link and filling out the information. This is a ‘phishing link’ designed to steal personal information.

How to Avoid: The IRS never initiates contact by email, text messages or social media.

5)        Employee Retention Credit: The ERC is a tax credit for businesses that retained employees during COVID-19. Fake ads on social media claim they can help business owners get their ERC credit right away.

How to Avoid: Use a trusted tax preparer. Do not respond to an unsolicited third party.

If you believe you are a victim, please report it to the Treasury Inspector General Administration (TIGTA) and the Federal Trade Commission.