When it comes to taxes, the advice for people confused by theirs ins and outs is almost always “seek out the services of a professional” — amid a preponderance of new scams and schemes, the Internal Revenue Service (IRS) started out 2023 by warning filers to “understand who they're choosing and what important questions to ask."
But finding true professionals is equally important and, three months later, the agency is once warning against scammers who pose as professionals to get people’s private information. As part of its annual “Dirty Dozen” list of scams, the IRS is warning against a scheme in which fraudsters offer help setting up people’s IRS Online Account.
DON’T MISS: Almost 70% of Americans Are Worried About This Key Tax Issue
While the IRS Online Account is an easy way to file, setting it up does not require the kind of professional knowledge that actually filling out the return can. The fraudsters, according to the IRS, are trying to get access to one’s account in order to “run off with the taxpayer's personal or financial information.”
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‘New Ways To Steal Information’
“Scammers are coming up with new ways all the time to try to steal information from taxpayers,” IRS Commissioner Danny Werfel said in a statement. “[…They] are trying to convince people they need help setting up an account. In reality, no help is needed. This is just a scam to obtain valuable and sensitive tax information that scammers will use to try stealing a refund.”
The first red flag should be being asked for personal details such as one’s address, Social Security number or Individual Taxpayer Identification number before even starting to go over income documents. When in the wrong hands, this information can be used to “file fraudulent tax returns, obtain loans and open credit accounts.”
“People should be wary and avoid sharing sensitive personal data over the phone, email or social media to avoid getting caught up in these scams,” Werfel said.
This Is Why So Many People Are Worried About Taxes This Year
While this scam capitalizes on many people’s confusion about the tax-filing process, other common scams falsely create a sense of panic — at the at the end of January, the IRS warned of a new “vishing” (“voice phishing”) scam in which someone calls about nonexistent “legal action involving your social security number.”
Although scams arise every tax season, there has been more than usual at a time when many can expect to get a lower-than-usual return. Now that many of the credits put in place during the pandemic finally expired, the the average filer will get $326 less than they did in 2022.
A survey from consumer finance company Bankrate found that 69% of those who expect to receive a tax refund this year are worried about something — 33% fear it may be smaller this year (they are, most likely, right) and another 34% worry inflation will not take it as far as it needs to go.
This year, a growing number of people are also relying on their tax refund to improve their finances. While 67% said their tax refund would significantly help their financial situation in 2022, that number is now at 75%.
Another 43% said the refund is very important to their financial well-being while 28% of those getting one plan to use it to make credit card payments or otherwise bring down their debt.
