CPA in Irving, Texas warns about tax season scams

Consulting a CPA (Certified Public Accountant) when you have a question about a request or other notice from the IRS is the best way to ensure that you don’t fall victim to common scams targeted to individuals and businesses during the tax season. DL Long, Certified Public Accountant, PC in Irving, Texas can help you identify legitimate communications from the IRS and show you how to respond to them appropriately.

January through April is prime “phishing” season for tax scam artists trying to obtain personal and financial information from consumers in an effort to steal their identity. Phishing refers to the use of e-mail to fraudulently obtain personal and financial information. Because these scams typically increase in frequency during this time, consumers need to be even more vigilant during tax season to protect themselves against identity thieves.

How can you identify a phishing scam? It usually arrives in an e-mail urging you to visit a site where you are asked to enter personal and financial data, which is then used by identity thieves. After obtaining this information, thieves can run up charges on credit cards and apply for new loans, credit cards, and services in the your name. Because these activities can be done electronically from remote locations, it’s easy for scam artists to act before you are aware of the theft.

Common phishing scams
The most common phishing scams are e-mails that claim to come from the IRS or Treasury Department. The IRS warns about several common e-mail scams being used for identity theft. These e-mails employ several tactics to try and obtain personal information. Some try to convince consumers that they are eligible for a tax rebate or benefit from a government economic stimulus package or scare them with the threat of an audit. A third scam targets members of the financial community notifying them of tax law changes.

Tax refund e-mail
In one scam, an e-mail falsely claiming to be from the IRS informs recipients that they are eligible for a tax refund of a specific amount and prompts users to click a link in the e-mail to complete a refund claim form. By capturing the user’s personal information, the scam artist then accesses bank or credit card accounts. The IRS emphasizes that the only way to obtain a refund is to file a return. There is no separate form for refunds.

Tax audit e-mail
In another, the e-mail informs the recipient that his or her tax return will be audited. Making this e-mail even more attention-getting is the fact that it often addresses the recipient by name, an unusual characteristic of the typical e-mail scam, which is usually sent in mass mailings to potential victims by internet address only. You can safely disregard an e-mail of this type by knowing that the IRS does not send unsolicited, tax-account related e-mails to taxpayers.

Tax law change e-mail
A third variation of a phishing scam purporting to be from the IRS is an email addressed to businesses, accountants and “Treasury” managers. This e-mail instructs the recipient to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations, and IRAs and other retirement plans. An easy way to identify these e-mails as being fraudulent is the fact that the e-mail links it contains do not start with http://www.irs.gov/. All official IRS web addresses will begin with that URL.

How can you protect yourself?
Don’t take the bait! By knowing a few facts about how the IRS communicates with consumers, you can protect yourself from being a victim. Remember:

• The Internal Revenue Service does not send unsolicited e-mail to taxpayers.
• Official IRS web addresses start with http://www.irs.gov/.
• The only way to obtain a tax refund is to submit a tax return.
• Do not click on a link in a suspicious e-mail. If you want to access an IRS Web site, initiate contact by typing the IRS.gov address into your browser window, rather than by clicking on a link in an e-mail or opening an attachment.

For more information about how to protect yourself from phishing schemes, read the article “Protect Yourself from and Report Suspicious E-Mails or Phishing Schemes.” Also refer to the IRS web page “Tax Scams/Consumer Alerts” for a list of common scams frequently seen by the IRS.

If you believe you have received a fraudulent e-mail that claims to come from the IRS, you can forward it to phishing@irs.gov.  By forwarding the e-mail to the IRS, you can help them track the suspicious e-mail to its origins and shut down the scam.

To help ensure that you don’t fall victim to fraudulent tax schemes, work with a tax professional such as a CPA to answer any questions you have about your tax refund or dealings with the IRS. DL Long, Certified Public Accountant, PC can provide expert advice and guidance in changes to the tax law and interactions with the IRS. We can also help ensure that you are taking advantage of all the possible tax benefits available to you or your business.