Extension

 

Tax season has arrived and with that comes another opportunity for scammers to take your money. Awareness of scammers' unscrupulous schemes can help keep taxpayers from becoming victims.

 

While scammers work year-round, tax season is prime time for them, said Mengya Wang, Oklahoma State University Extension finance specialist.

 

“Although anyone can get scammed, older people tend to be more vulnerable, along with individuals new to paying taxes,” she said. “Scammers often use a sense of urgency, making people feel rushed into making a decision they might not otherwise. Your best line of defense is to remember the Internal Revenue Service will not call, text or email you. Any form of communication in these manners is not legitimate. The IRS communicates only through the U.S. Postal Service.”

 

A popular scam involves answering a phone call in which the caller indicates the taxpayer owes money that must be paid immediately to avoid being arrested or fined. The scammer then asks for bank account information to withdraw the payment.

 

Another ploy claims the IRS recalculated the tax return and the taxpayer is owed money. In this case, the caller asks to confirm bank accounts so the refund can be deposited. 

 

Wang said taxpayers should also be aware of fraudulent tax preparers. 

 

“If they offer an unusually low rate or base the rate on a percentage of the tax return, be cautious,” she said. “Other red flags include guaranteeing a large refund without fully reviewing your financial situation, asking you to sign a blank tax form or requesting fees to be paid upfront in cash – especially if they don’t provide a receipt.”

 

To help prevent being scammed, Wang suggests filing taxes as early as possible. This will help avoid the last-minute rush to finish everything by the April 15 filing deadline.

 

Some taxpayers may discover during the tax-filing process that their identity has been stolen. If this happens, file an Identity Theft Affidavit. This form alerts the IRS that someone has filed taxes using your information. Be sure to check with the credit reporting agencies and put a freeze on your credit.

 

The IRS offers legitimate sources for taxpayers to get help filing taxes. The Volunteer Income Tax Assistance and the Tax Counseling for the Elderly programs offer free help for qualifying taxpayers. More information on these programs is available online.

 

“No matter what time of year, consumers who are tempted to take action due to a phone call, text message or an email, take a pause,” Wang said. “Nothing is so urgent a decision must be made in that moment. Call someone and get a second opinion. Once you step back and consider everything, it’s much easier to see the whole picture and determine it was likely a scam. That little bit of extra time can save you money and protect your assets.”