Top 5 Tax Return Scams to avoid in 2023

As tax season approaches, it’s important for consumers to be aware of the common tax return scams that can put their personal and financial information at risk. Here are the top 5 tax return scams to avoid for consumers in 2023:

1. Phishing Scams: Scammers may try to trick taxpayers into revealing personal information by sending fake emails or text messages that appear to be from the IRS. These messages may ask for personal information, such as social security numbers, bank account numbers, or credit card numbers. It’s important to remember that the IRS will never initiate contact with taxpayers through email, text message, or social media.
2. Phone Scams: Scammers may also try to trick taxpayers into revealing personal information over the phone. They may impersonate IRS agents and threaten taxpayers with arrest or legal action if they don’t provide their personal information. Again, the IRS will never initiate contact with taxpayers over the phone and will never threaten arrest or legal action.
3. Return Preparer Fraud: Tax return preparers may take advantage of unsuspecting taxpayers by falsely claiming deductions or credits or by charging exorbitant fees. It’s important to choose a tax return preparer that is reputable and has a good track record.
4. Identity Theft: Scammers may try to steal taxpayers’ personal information by filing fraudulent tax returns in their names. To protect against identity theft, it’s important to safeguard personal information and check credit reports regularly.
5. False Promises of Free Money: Scammers may try to trick taxpayers into paying for services that promise to obtain large refunds or credits for which they are not eligible. It’s important to be wary of anyone who promises a refund or credit that sounds too good to be true.

To avoid falling prey to these scams, it is important to be aware of these common tactics and to protect your personal and financial information. Remember, the IRS will never initiate contact with taxpayers through email, text message, or social media, nor will they threaten arrest or legal action over the phone. If you suspect you are a victim of a tax scam, contact the IRS immediately, also you can consult a tax professional or attorney for guidance.