Tax experts warn against scams as tax season continues

COLUMBIA, Mo. (KMIZ)

The IRS has previously said that thousands of people lose millions of dollars and their personal information to tax scams every year.

Scams can include everything from emails, texts, and phone calls, to filing false tax returns. According to the IRS, scammers use a variety of methods to, "set up individuals, businesses, payroll, and tax professionals."

"When you're dealing with big money and lots of cash, the bad guys come into the system," Jackson Hewitts' chief tax information officer Mark Steber said. "We see all sorts of scams at this time of year, and there's no shortage even though we've gotten better as an industry."

The IRS warns against scams including:

• Pandemic-related email scams
• Phone scams
• Identity theft
• 'Ghost' tax return preparers

"Its kind of like your momma might have told you, if it sounds too good to be true, it's probably too good to be true," Steber said.

Steber said some of the key components to watch for when it comes to tax scams include any messages that may say -

• If you have a reported tax preparer say they "guarantee you a refund, overnight, come on we charge a low fee, but they won't sign it, that's a red flag."
  • Steber said tax professionals are required to sign and return tax refunds.
• Any phone calls, emails or texts from the IRS, law enforcement or the Department of Immigration.
  • Steber said any of those departments will not likely reach out over the phone.
  • The IRS particularly only mails information but will return phone calls if you reach out to them first.

"Anytime that someone's looking for data, anytime they're looking for information on your financial and personal information, you know, that's generally a huge red flag and a warning sign," Steber said.

Elder abuse was up 25% in 2021, according to Steber, and is one of the biggest reported scams. Fake tax returns are the second largest scam with the IRS reporting 443,000 fake tax returns being filed in 2019.

Scammers often target the elderly.

Steber said if you receive a message stating that your taxes have already been filed when you go to file your taxes, you may be a victim of fraud. He also said filing your taxes early will lock in your information with the IRS. But if you do find yourself falling victim to either a tax scam or tax fraud, Steber advises you to file a report with the IRS or a tax professional.

The IRS has multiple resources available to help victims report schemes and tax scams.