Tax Scams 2024: Voters need to maintain a state of constant vigilance in anticipation of Tax Day, as numerous schemes are designed to deceive and pilfer sensitive information.
Scammers’ methods become increasingly sophisticated annually; therefore, taxpayers must remain informed and take preventative measures. The following are some of the most prevalent tax schemes of 2024, along with advice on how to avoid becoming a victim.
IRS Issues Warning About Dirty Dozen Tax Scams
1. Phishing Scams
Phishing scams use fake IRS or other official emails or texts. While posing as tax information verifiers or tax refund mediators, scammers sometimes request logon credentials, Social Security numbers, and bank account information. To avoid marketing scams:
- Exercise caution when opening emails; examine the sender’s email address and suspicious URLs for grammatical errors to confirm their authenticity.
- Avoid clicking on links in unsolicited emails or messages. To access official websites, enter the URL into your browser and navigate there.
2. Phishing IRS Telephone Communications
Scammers frequently threaten taxpayers who fail to make immediate payments with imprisonment, deportation, or other legal action while impersonating IRS agents over the phone. The IRS will never:
- Demand immediate payment: The IRS will never request payment over the phone prior to mailing a statement.
- Threats of deportation or detention are not issued by the Internal Revenue Service in relation to taxpayers.
3. Theft committed by tax pros
Some deceitful tax preparers promote inflated tax refunds or charge astronomical fees in return for their services. To prevent tax preparer fraud:
- Concerning tax preparers, inquire: Verify credentials and perform a background check for any complaints or disciplinary actions.
- Verify the accuracy of your tax return and deposit your refund directly into your account, not the account of the tax preparer, prior to filing.
Added tax guidance
Cash-based babysitters and servers can immediately reclaim unclaimed revenue.
“A parent who entrusts you with the care of their child is likely to be deducting the cost of your service from their taxable income.” This needs alignment, argues Willetts. “You must be bonded as a household painter or small business.” The IRS will contact you.
Government agencies communicate, she said. Having $20,000 in income on your tax return and applying for an FHA-backed mortgage with $80,000 down will look odd.
Thomas Scott of Aprio warns small business owners who exclude data from audits.
“When it’s time to file their taxes, the business owner tends to estimate because they haven’t kept up with their income for the entire year,” Scott adds. “The majority of earned income has already been reported to the IRS on Form 1099, which flaws this strategy.” The IRS connects the owner’s return income and Form 1099s.
An employee or coworker might report you to the IRS for tax fraud if they are displeased with your behavior. The 2006 Whistleblower Program increased compensation from 15% to 30% of IRS collected funds.
ITR Refund Fraud Alert: Scammers Targeting Taxpayers with Deceptive Messages
