Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
Better Business Bureau® Serving Greater Cleveland (BBB®) is warning consumers to look out for IRS impersonators and unscrupulous tax preparers during the upcoming tax season. These bad actors may lie about their credentials to get taxpayers’ personal information. Other times, they may cite information such as social security numbers and maiden names to gain their victims’ trust or shock them into compliance.
IRS impersonators typically obtain their victims through unsolicited phone calls but may also contact taxpayers through spoofed emails, text messages, or social media channels. Scammers also offer to help create a taxpayer’s IRS Online Account at IRS.gov. In reality, consumers do not need any such service to create an online account, and providing a third party with access to it will put the taxpayer at risk of identity theft. Taxpayers should always establish their accounts themselves at IRS.gov.
Scammers may also pose as tax preparers. Consumers should carefully vet and research any tax preparation service, software, or individual. Tax preparers must have an active preparer tax identification number (PTIN) through the IRS. Consumers can use the IRS’ searchable online tax preparer database to find the credentials of nearby individuals or companies.
Consumers should always be careful to whom they provide personally identifiable information (PII) , such as social security numbers and date of birth. This information can be used to file taxes and, in turn, steal refunds.
BBB has these tips:
- The best way to avoid tax identity theft is to file your taxes as early as possible. File before a scammer has the chance to use your information to file a fake return.
- In the U.S., jot down your Identity Protection PIN (IP PIN) from the IRS before you file your return. This is a six-digit number, which, in addition to your Social Security number, confirms your identity. It is important to note that you cannot opt-out once you get an IP PIN. You must provide the IP PIN each year when you file your federal tax returns. The IRS will provide your IP PIN online and then send you a new IP PIN each December by postal mail. Visit the IRS for more information about the program. Read BBB’s tips about the IRS PIN.
- The IRS does not initiate contact with taxpayers by email, text message, or social media to request personal or financial information. This includes requests for PINs, passwords, or similar access information for credit cards, banks, or other financial accounts.
- If you get tax information delivered electronically from your employer or other entity, treat that information carefully. Download it onto a password-protected computer.
- Only deal with trustworthy tax preparation services. For many people, major life changes, business ownership, or simply a lack of knowledge about the ever-changing tax laws make finding a trustworthy tax preparer a good idea. That said, not all tax preparers have the same level of experience and training. See our tips for finding the right tax preparer for you.
- Check out websites carefully and make sure you are accessing the real IRS or CRA website when filing your taxes electronically or inquiring for additional information.
- If you are the victim of tax identity theft in the U.S., contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov.
The IRS advises taxpayers who owe taxes or think they do to view tax account information online at IRS.gov or call the IRS at 800-829-1040. Visit bbb.org/all/taxtips for more information.
Consumers can file a complaint at BBB.org/Complaint. If individuals have spotted a scam (whether or not they’ve lost money), they can report those to BBB.org/ScamTracker. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected]. Have a scam to report? Report it to BBB.org/ScamTracker.
