Ah, February—love is in the air, and Cupid may just have his arrow pointed toward you and a special someone. But Cupid has competition. It’s also tax season, and scammers are out looking for their special someone(s), too. That’s why it’s more important than ever to avoid common tax scams. As if taxes weren’t horrible enough on their own, criminals are devising new ways to trick us into tax scams, with horrific consequences.
According to IRS data, tax scams spike in January and February and intensify through April. Last year, scammers targeted numerous business owners by misrepresenting the Employee Retention Credit (ERC), charging hefty fees for assistance with applications—even for a credit many victims didn’t qualify for. So many business owners were attacked that the IRS set up an ERC withdrawal program to help those who realized they had unknowingly submitted fraudulent claims.
Popular Tax-Time Scams
Tax scams are particularly tricky because no well-meaning taxpayer wants to make a mistake and get in trouble with the government. Scammers and cybercriminals prey on our fear of compliance issues by posing as IRS agents, tax software providers or even colleagues in financial departments, with urgent messages demanding payment, or Social Security numbers.
It may be only February, but these scammers are likely already in your inbox. Take a few minutes to read about these common tax-time scams and what you can do to prevent them.
1. Phishing And Smishing Scams
Scammers love pretending to be the IRS to get your personal information. They’ll send fake e-mails or texts promising refunds or threatening legal action, hoping you’ll click on their links or share sensitive details. These scams don’t just target individuals—they often go after tax pros and businesses because those can give access to loads of valuable data.
How to prevent it: Never click on links or reply to unexpected messages claiming to be from the IRS. If something feels off, report suspicious e-mails to [email protected], and always verify messages directly with the IRS through official channels.
2. Online Account “Help”
Scammers are targeting taxpayers by offering help setting up an IRS online account. Their goal is to steal your personal tax and financial information, which they can then use for identity theft. These criminals may pretend to be “helpful” third parties, tricking you into handing over sensitive details like Social Security numbers or IDs, which they can use to file fake tax returns and steal refunds.
How to prevent it: Only create your online account directly through IRS.gov and avoid any unsolicited offers for third-party help. If someone reaches out offering to assist, it’s probably a scam.
3. Fuel Tax Credit Scams
The IRS is warning taxpayers about popular scams pushing Fuel Tax Credit claims, which are only available for off-highway business or farming use. Scammers will mislead you by fabricating documents or receipts for fuel to make false claims, often charging hefty fees in the process. While these scammers profit, you are left with the risk of facing IRS scrutiny and potential penalties.
How to prevent it: If you’re considering claiming a Fuel Tax Credit, make sure you’re eligible, as incorrectly claiming it could lead to serious consequences like fines or criminal charges. Always consult a qualified tax professional to ensure your claims are legitimate.
You Know The Saying: If It Sounds Too Good To Be True, It Probably Is
Many of these scams are plastered all over the Internet, often with promises of tax savings that sound too good to be true. But the old saying still rings true: If something seems too good, it probably is. These schemes might look tempting, but they can land you in hot water with the IRS and lead to serious legal trouble. This year, make tax season a little less miserable by learning how to avoid common tax scams and sticking to legitimate, proven methods. You can also check out the
If you want to keep your business safe from tax season scams, get in touch with our team. We can help with network security, phishing protection, and ongoing monitoring to catch threats before they cause damage.
