At Adams Accounting Solutions, we believe part of our job involves keeping our clients aware of current tax scams. When we prepare taxes for our clients, whether they’re small businesses or individuals, we take great care to make sure everything is accurate and accounted for. It’s our job to help clients maximize their earnings whenever possible and avoid situations that may hurt their financial well-being.
Pay Attention to Red Flags
That’s why it concerns us when we see the IRS’ list of “Dirty Dozen” tax scams. This annual list is a run-down of the scams most frequently targeting tax-paying citizens. The IRS publishes this list to bring greater awareness to the issue and encourage people to remain vigilant. Unfortunately, the COVID pandemic has created an even bigger arena for scammers to operate in, and fraud is on the rise.
Be Scare Aware
These fraudsters are not solely focused on tax fraud; they’ll take any information they can get from you and use it to take your money if they can. It’s up to each individual to be on guard against this.
This year’s list isn’t out yet, but here are a few examples from last year’s list. It’s safe to say that these scams haven’t gone away in the ensuing months. To see the full 2020 list of the IRS’ Dirty Dozen tax scams, click here.
Phishing: A phishing scam is when someone posing as the IRS contacts you through fake emails or websites to get personal information. The IRS has seen a considerable increase in phishing schemes. Many of these schemes use words like coronavirus, COVID-19, and stimulus. Be wary of anything that looks suspicious. The IRS never initiates contact via email about a tax bill, refund, or Economic Impact Payment. Don’t respond or click on any links in these communications, and don’t give away any of your personal information, such as your social security number, bank account numbers, or your birthdate.
If in doubt about a communication, proactively call the IRS and ask about it. If it’s fraudulent, they’ll let you know. And they’ll want to know about it. The IRS is aggressively pursuing phishing criminals.
Threatening phone calls: Another tactic used by scammers is the threatening phone call. In this scenario, the criminal poses as an IRS employee and uses an ominous or urgent tone to instill fear in the victim. They may demand immediate payment of a bogus tax bill if the victim doesn’t respond immediately. Don’t provide any information. The IRS never demands immediate payment, threatens, asks for financial information over the phone, or calls about an unexpected refund or Economic Impact Payment.
Payroll and HR scams: Employers should be on guard against scams that attempt to steal Form W-2s or other employee information. One of the most common is the direct deposit scam. This occurs when a compromised email account is used to request that the employer change the direct deposit information for an employee’s payroll check to an institution controlled by the scammer. IT departments should monitor for this type of activity and report it to the FBI Internet Crime Complaint Center.
For the full list of trending scams, click here.
Choose a Reputable Accountant
Selecting the right person to do your taxes is paramount to your financial well-being. Your accountant is entrusted with sensitive personal information that should be closely guarded. Unfortunately, dishonest tax preparers appear every season, attempting to commit fraud by coercing taxpayers into doing things they shouldn’t do. By the time the IRS gets involved, it’s too late.
You won’t have that problem at Adams Accounting Solutions. We adhere to the rules and ethical standards set out by state and national regulatory institutions for our industry. Our reputation depends on the trust of our clients. If you need help with tax preparation this season, give us a call at 913-888-9100. We’re here to help!
