The 2018 deadline to file your taxes is a few weeks out and scammers will be trying to take advantage of you. Here are 5 things you should know.
1. Know what a scam looks (or sounds) like.
One of the oldest scams in the book is a phone call, where a person or robo-caller says you owe money to the IRS and if you don't pay by a certain time, you could be arrested, or deported, or give another threat.
"There are various derivatives of threats," explains Tiffany Dodson with Liberty Tax Service. "Drivers license revoked, business license revoked, deported for immigration services of you do not pay x-amount."
Dodson says that scammers will often look for credit card numbers or other personal information and they may even ask for a gift card. The bottom line is that this is not how the IRS operates and you shouldn't give your bank or personal information out to anyone on a call like this.
"Those things can be very handy to a scammer because they can use it to file false tax reports in the future, they could apply for credit and do a lot of damage to the persons credit and overall business reputation in the numbers," Dodson explains.
2. The IRS will never call you and demand money.
If you really owe taxes, the IRS would not contact you over the phone, on social media or through email. So, how would the IRS actually get in touch with you? The IRS says generally, they would send you a bill if you owed taxes. The IRS would not demand money on the spot and you'd be given a chance to appeal or question what the IRS says you owe. The IRS would also never threaten to bring in law-enforcement, arrest you for not paying or revoke licenses.
3. Don't click the link!
Scams can also come in the form of an email. Dodson says an email could be disguised as do-it-yourself tax software. If you download that software, it could come with a virus or be used as a way to steal personal information. Don't click the link! What Dodson says you should do is delete the email and report it to phishing@irs.gov.
4. The college-aged population and the elderly population are more at risk.
Scammers tend to target the elderly population, who might be more willing and trusting to give information over the phone, and also the college-aged population who might not have as much experience filing taxes. If you know someone who might be a target, be sure to go over the signs of a scam with them, and encourage them to hang up and call for help.
5. Don't call them back.
If you get a scam call, the best thing to do is just hang up the phone. You can report scams to the IRS and the FTC. And again, the IRS will never ask for your money or information over the phone or online. Don't share your information or give money to anyone trying to threaten you.