Is the IRS really texting you? No, it's one of many tax scams.

Is the IRS really texting you? No, it's one of many tax scams.
The do-it-yourself taxpayer popped a TurboTax CD into his computer. After two failed attempts to set things up, he spotted a message on the screen to call a phone number. He called it.
He thought he was taking the right steps to do his taxes but he walked right into a tech support scam. A scammer impersonating the service rep at Intuit told the man there appeared to be trouble with his computer — and then said he needed to take control of the computer to fix the problem. The scammer helped himself to $400 — which was pending on the consumer's bank card, according to a report made to the AARP Fraud Watch Network helpline in January.
"The red flag on this one is somebody asked to have remote access to his computer. Nobody needs remote access to your computer that you don't already have a trusted relationship with," said Amy Nofziger, director of victim support for the AARP Fraud Watch Network. As we're working our way through tax season, it's important to realize that tax scams aren't just limited to those phony IRS calls that claim you owed the government a lot of money.
The crooks use all sorts of strategies to get your cash. The uptick in tax-related complaints to the the AARP hotline early in 2023 is surprising this year, Nofziger said, noting the scams are hitting well before the April 18 deadline. "Criminals are still going after people's tax refunds and using the tax system to scam and manipulate people," Nofziger said.
Here's what scammers are doing to trick us: The Pop-Up Phone Number: Any time you go on a computer or a smart TV, Nofziger warned, there's a risk you'll see a phone number that's impersonating a legitimate business but is actually connected with scammers. Scammers are able to target us through any device connected to the internet. Con artists might insist you need to pay some sort of activation fee or fee to cover the service or fix a problem — or they're going to ask for remote access and try to then gain access to your bank account.
The Better Business Bureau warned in February that the BBB Scam Tracker has seen more reports about scammers catching people off guard with pop-ups on their smart TVs. "Their objective is to steal your personal information and money," the BBB said. One way to avoid a scam: Before you call that number, take time to cut and paste the number to do a Google search to spot any connection to scams.
Or look at the orginal packaging and call a customer service number on the box to see if there's an issue. Never let a stranger control your device remotely. More: Detroit rapper sentenced in multimillion-dollar tax fraud scheme No, the IRS isn't texting you about a refund Bogus emails and texts relating to taxes: Maybe, the email looks like it's from your tax professional.
Maybe, it looks like it's from the IRS or your state's tax agency. Maybe, it claims to be from a tax software company. It's likely not real.
Scammers are phishing to cause trouble. The text or email might suggest that you qualify for a refund, but you must click on a link and fill out a form to access it. Don't do it.
The IRS isn't sending out emails to alert you about your tax refund. The crooks want to steal your personal or financial information, including passwords, Social Security number and credit card numbers. Or they're trying to send an attachment that embeds malicious software and can harm your computer.
The IRS notes in an alert that the criminals may try to trick taxpayers with emails relating to refunds or ordering transcripts or even verifying PIN information. Some fake emails or phone calls even say your Social Security number is about to be cancelled if you don't take action. That's just not true.
Another tip: "IRS doesn’t require life insurance and annuity updates from taxpayers or a tax professional," the IRS stated. The Federal Trade Commission Consumer Sentinel Network data indicates there were 725,989 reports across the country in 2022 of imposter scams — and 22% of those reports indicated a financial loss. Victims reported losing nearly $2.
7 billion to imposter scams. The median loss was $3,995. More: What to know about the 2023 tax credit for clean vehicles if you're car shopping More: Tax season 2023: What exactly is the mileage rate? It's not just 1 number.
More: IRS processing returns faster in first 3 weeks — but average refunds down 14% Is that the real IRS web address? Getting tripped by the wrong website: One consumer reported going online to IRS. gov but somehow being redirected to something called an e-file app. Most likely, Nofziger said, the consumer ended up on a fake site, not the real IRS.
gov site. As part of the scam reported to the AARP Fraud Watch hotline, the person was asked to verify his name and Social Security number but then the e-file app locked up. The consumer already had used his credit card to pay $5 to address one tax issue.
The consumer said the card ended up having a charge of $55. It's easy to end up at a bogus sites that mirror the official IRS website. An online alert at TurboTax warns that some bogus emails or sites often mention "IRSgov.
” "The most telling sign that it’s a scam is the missing dot between 'IRS' and 'gov' in the web address," according to the TurboTax alert. Scammers love to create imitation websites using URLs that are just a letter or two off, the BBB warns. More: Tax Day in Michigan: 15 questions you might have on due date, refunds, more Watch out for bogus tax calls Annoying phone calls: Another consumer, Nofziger said, reported getting a call from "Jessica" who wanted to prepare his taxes.
But he knew that had to be a scam. And another caller reported getting a call from "Linda" who claimed to be with the IRS. "Linda" had news that the taxpayer was due a refund from the federal government for back taxes.
All the consumer needed to do was to go to Rite Aid to buy an eBay gift card for $199 and get that card activated. Yet if you do a Google search on the number that was part of this scam — 315-220-0324 — you see complaints that this phone number has been used to get other consumers to wire money or buy gift cards as part of a government grant scam. If you think you owe back taxes, call the IRS at 800-829-1040 or see IRS.
gov/balancedue. Shady tax preparers steal cash Avoid bad preparers : Taxpayers need to hit the pause button and rethink whether it's really in their best interest to pick a tax preparer after hearing glowing comments from a friend or seeing an ad on Facebook that promotes the maximum refund. About $1.
2 million was reported lost to tax preparer fraud in 2022, according to new data from the Federal Trade Commission. The FTC received 7,116 reports on taxpayer fraud, where the 9% of consumers reported losing money. The median loss was $228.
The top payment method was by debit card. Last year, a Detroit tax preparer pled guilty to a scheme that included creating business losses for tax filers from a non-existent business to generate bigger tax refunds. Some fraudulent returns create a fictitious business, say a lawn service or cleaning business, to trigger tax credits.
Taxpayers who report enough income, up to a certain point, can receive a larger refundable Earned Income Tax Credit and a bigger refund. Yet claiming losses also can reduce someone's income enough to put them within the income range allowed for the earned income credit, enabling them to claim the credit. Tax tip: You can't claim to run your own business if you don't have one.
“Dishonest preparers pop up every single tax season," warned Yvette Brooks-Williams, a senior stakeholder liaison at the Internal Revenue Service in Deleware, in a webinar on scams and tax related identity theft on Feb. 21. Crooks promise inflated refunds by claiming big tax credits when someone might not qualify.
No one can guarantee that you're going to get a tax refund, as all individuals face different tax situations. More: Detroit rapper sentenced in multimillion-dollar tax fraud scheme Don't panic if you owe money: Criminals continue to make aggressive calls posing as IRS agents to steal money, get you to buy them gift cards or trick you into handing over personal information. But typically, the IRS first initiates contact through the regular mail.
Brooks-Williams noted that non-English speakers who may have foreign sounding last names are often targeted by those impersonating the IRS and other government agencies, including intitiating fraud with phone calls. The scammer’s objective can be to make you panic and make you more likely to respond. The IRS isn't going to call to demand immediate payment using a prepaid debit card, gift card or wire transfer.
Make sure you get your refund: If you're getting a tax refund this season, the refund money should go into your bank account, not someone else's. If receiving a paper check, you should get that check sent to you, not your tax preparer. Some unscrupulous preparers have actually changed the direct deposit information on the return to reflect information for their own bank account, not the taxpayer's, said Christine Peters, a certified public accountant and chair of the small business practioners task force for the Michigan Association of CPAs.
Take time when reviewing your return to verify that the direct deposit information, she said, including the bank name, routing and account numbers. Another bad sign: A tax preparer who refuses to provide a copy of your tax return. Peters, who is a shareholder at Partyka & Co.
P. C. in Warren, said taxpayers need to understand that the IRS doesn't have the authority to regulate tax preparers without any legislation from Congress.
But the IRS does require those who are being paid to do tax returns to have a Preparer Tax Identification Number called a PTIN. A tax return should include that PTIN number on it. Be wary of a preparer who refuses to include the PTIN or sign a return.
You could be dealing with a preparer who has a troubled past, maybe someone who wasn't able to get a PTIN because of felony convictions relating to financial or tax fraud or someone who has other tax troubles. The IRS warns that a "ghost preparer" could hand you a printed return that the preparer didn't sign and then tells you to mail the return to the IRS. Research a preparer's history or customer complaints.
To search for tax return preparers via the IRS site, go to irs. treasury. gov/rpo for information.
You can also search for a Michigan CPA license at www. michigan. gov/miplus .
You can report issues, such as if someone stole your refund or indicated the return was "self-prepared" when it was not, by filing Form 14157 or Form 14157-A with the IRS. In Michigan, you can email a complaint to ReportTaxFraud@Michigan. gov .
Contact Susan Tompor: stompor@freepress. com . Follow her on Twitter @ tompor .
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