Tax Scams 2023 Are On Rise, What Can You Do?

Tax Scams
Tax Scams Needs To Be Avoided

Taxpayers in the United States are being warned to stay vigilant as tax scams have seen a sharp increase of 55% by 2023. In 2020 alone, the IRS reported losses of an estimated $2.3 billion due to tax-related fraud.

Tax fraud is a type of white-collar crime that involves using stolen or false information to claim a tax refund or avoid paying taxes. Tax scammers are often highly sophisticated and use sophisticated methods to steal personal information and money from taxpayers.

Get Saved From Tax Scams

Fortunately, there are several steps you can take to protect yourself from becoming a victim of tax fraud. Here are a few tips to keep in mind:

  • File taxes early. It’s important to file your taxes as soon as possible. The sooner you file, the sooner the IRS can identify any fraudulent activity or tax scams associated with your return.
  • Be wary of emails and phone calls. Scammers often use emails and phone calls to try to get your personal information or to trick you into paying taxes you don’t owe. If you receive an email or call claiming to be from the IRS, do not provide any information. Instead, contact the IRS directly.
  • Use an identity protection service. Identity protection services can help protect you from tax fraud by monitoring your credit report and alerting you to any suspicious activity.
  • File electronically. Filing your taxes electronically is a great way to reduce the chances of someone stealing your return by tax scams.

By following these simple tips, you can significantly reduce your chances of becoming a victim of tax fraud. It’s also important to remember that the IRS will never demand immediate payments, threaten you with arrest, or require payment via prepaid debit cards, gift cards, or wire transfers. If you suspect you’ve been a victim of tax fraud, contact the IRS immediately.