BBB warns taxpayers of common tax scams this season

RALEIGH, NC (WWAY) — As tax season approaches, the Better Business Bureau is alerting taxpayers to common scams designed to steal money and personal information. Each year, scammers posing as the Internal Revenue Service target people with new variations of these schemes.

Here are a few common scams to watch out for.

IRS Impersonation Scams

Scammers often call, claiming to be IRS agents and demanding immediate payment for back taxes. These impostors threaten fines or arrest if the target does not comply, often requesting payment via prepaid debit cards or wire transfers. Others claim to issue tax refunds and request personal information, which can lead to identity theft. The real IRS will never demand immediate payment, require a specific form of payment, or ask for a credit card or debit card number over the phone.

Tax Identity Theft Scams

Fraudsters file fake tax returns using stolen Social Security numbers to claim refunds. Victims often discover the fraud when the IRS notifies them that multiple returns were filed under their identity.

Phishing and Mailing Scams

Scammers send emails or physical mail resembling official IRS correspondence. These messages often direct recipients to fraudulent websites designed to steal login credentials or request personal and financial information under the pretense of unclaimed tax refunds.

Tips to Avoid Tax Scams

The best way to avoid tax identity theft is to file your taxes as early as possible.

Verify IRS Communications: The IRS does not initiate contact via phone, email, text, or social media.

Watch for bad grammar and odd punctuation when reading emails and letters claiming to be from the IRS.

Use Trusted Tax Professionals: Research tax preparers through BBB.org to ensure they are legitimate.

Monitor Your Financial Accounts: Check credit reports and IRS account activity for signs of fraud.

Confirm Suspicious Contact: If unsure, contact the IRS directly.

If you believe you are a victim of a tax scam, report it to the IRS at 1-800-908-4490 and file a complaint with the Federal Trade Commission at ftc.gov/complaint.