A Visual Guide to Identifying Tax Fraud and Fraud
Tax frauds are common this time of year, and knowing how to spot them can save you tons of money. This FTC infographic shows you how these scams usually work, what a valid IRS contact looks like, and what to do if you receive a fake IRS call.
Both this guide and NPR’s Planet Money point out that these scammers often use your fear or panic to manipulate you into giving them personal information or money. I recently experienced this myself: I got two calls from a robot and they told me that the IRS was suing me, and that I called back at a certain number to get more information on the case. This and many other messages used in tax scams sound intimidating, but there are two ways to find out if you are being cheated or not: First, the IRS will always contact you by mail first (not by phone or email). and they will not ask you to pay in a certain way (for example, bank account number or bank transfer). Check out the full infographic below to learn more and what to do if someone tries to trick you.
Another Tax Scam: IRS Impostors | Federal Trade Commission