According to the Better Business Bureau, fraudsters are expected to return in full force during tax season, using phone calls, emails, texts, fake websites, and even “ghost” tax preparers to steal personal information, refunds, and money. In fact, taxpayers lost over $5.5 billion to tax scams in 2023 alone.
At GLM Accounting & Business Advisory, protecting our clients goes beyond preparing accurate returns. It includes helping you recognize red flags before a scam turns into a costly mistake.
Common Tax Scams to Watch For
Tax Identity Theft
This occurs when someone files a tax return using your Social Security number to steal your refund. Victims often don’t realize it until their legitimate return is rejected.
Scammers obtain information through:
- Phishing emails or texts
- Fake tax preparation services
- Data breaches or malware downloads
IRS Impersonation Scams
These usually start with a call, email, or text claiming to be from the IRS.
Red flags include:
- Threats of arrest or legal action
- Demands for immediate payment
- Requests for payment via wire transfer, prepaid debit card, or cryptocurrency
- Requests for sensitive information over the phone or email
👉 The IRS will never demand immediate payment, threaten arrest, or ask for credit card or debit card information over the phone.
Email & Text Phishing
Scammers send messages that look like official IRS communications, often directing you to:
- “Update your IRS account”
- “Fix an issue with your tax return”
- “Claim a refund”
“Ghost” Tax Preparers
These are unqualified or fraudulent preparers who:
- Set up temporary offices during tax season
- Promise unusually fast or large refunds
- Don’t sign your return
- Disappear if issues arise
Smart Ways to Protect Yourself This Tax Season
- File early. Filing as soon as possible reduces the chance that a scammer can file before you do.
- Work with a trusted tax professional. Always verify credentials and reputation.
- Be cautious with emails and texts. Never click unexpected links claiming to be from the IRS.
- Verify websites. Make sure you’re on the official IRS site when filing or researching.
- Ask about security. Your tax preparer should be able to explain how they protect your data.
- When in doubt, pause. Scammers rely on urgency. Taking a moment can save you thousands.
How GLM Helps Keep You Safe
At GLM Accounting, we take data security seriously. Our processes are designed to protect your information while ensuring your tax filings are accurate, compliant, and handled with care.
If you ever receive a suspicious tax-related message—or just aren’t sure if something is legitimate--reach out to us before responding. A quick conversation can prevent a costly mistake.
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