Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses tax scams, including how to spot them and how to avoid being conned.
Tax fraud and scams are growing in popularity and have even recently taken on newer forms. Taxpayers are often conned over text, phone, email, and even regular postal mail. Some taxpayers have even been scammed through social media. Tax criminals are becoming more creative in their methods so it’s vital to know how to spot tax scams.
Remember that the IRS will never ask for immediate payment. Some scammers have claimed to be IRS agents, demanding payments in the form of prepaid debit cards or gift cards. The IRS will also never threaten a taxpayer with violence or jail time. Scammers use these tactics to intimidate taxpayers in financial hardship. Finally, the IRS will not request any personal information or banking information. Do not give your information to anyone who claims to be with the IRS.
In some cases, you may be able to deduct tax losses that result from tax scams. However, nothing is guaranteed so it’s best to stay vigilant when it comes to your identity and personal information.
Tune in next Friday for another episode of “Ask Phil.” Next week’s topic: IRS notices!
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