US taxpayers are unwary victims of scams in the tax filing season, warns the Internal Revenue Service (IRS).
Tax filing starts from January 31 in the US, and the IRS is already warning taxpayers fraudsters are after their money.
Gangs are out to rip-off taxpayers with several dodges, says the IRS, which has issued a checklist of do’s and don’ts to fight off the scammers:
- Check any unexpected letter or email that looks like an official document from the IRS really is bona fide
- Hang up on bogus telephone calls offering refunds or warnings to pay overdue tax
- Delete emails asking for personal financial information from the IRS – the tax authority never sends requests by email
- The IRS does not communicate with taxpayers via Twitter, Facebook or any other social media network
- Attachments and links in unexpected emails are often lures that let thieves access your computer for passwords and financial information, so do not click on them
- Send any suspicious emails to [email protected] so investigators can track down the scammers
Identity theft
The IRS also warns that identity theft is on the rise and offers some tips on how to protect yourself against crooks:
- Don’t take your social security card or any documents with your social security number or tax ID out in case you lose them
- Don’t give your social security number or tax ID to anyone you do not know and trust
- Shred financial documents before you throw them in the garbage
- Get a copy of your credit report every year to make sure no one has taken out credit or a loan in your name
- Protect your computer with a password and keep financial information safe behind a firewall and install antivirus software. Keep the software up-to-date
- Keep passwords for online financial accounts and email secret and change them regularly
- Never give personal or financial information out over the phone unless you are sure of who you are talking to
Bogus web sites
Taxpayers should also look out for bogus websites passing off as the IRS.
British taxpayers have been warned about clone web sites that look like the HM Revenue & Customs (HMRC) web site but are really set up to capture their financial details.
“Most people are honest and straightforward in their dealings with taxpayers, but some see them as victims and tax filing as an opportunity to steal their money and identities,” said an IRS spokesman.
As a Canadian who has lived in Canada since I was a baby, I am more worried about the IRS with its FATCA scam. Apparently my US birthplace makes me a delinquent US taxpayer. Who’d have thunk it? That sure isn’t how Canada treats Canadians who leave Canada! Ask Ted Cruz!
Thanks FATCA for waking me up to the fact that although I have been ignorantly living my life as a 1st class Canadian citizen, I’ve been 2nd class all along. My Canadian savings earmarked for my kids university educations and my retirement are either ‘foreign trusts’ or ‘passive foreign income corporations’, and soon my bank up the street from where I live, will be reporting my criminal accounts to the IRS.