Protect yourself from these scams during tax season

It’s tax season again, and scammers are hunting for all the personal information used for filing taxes that is circulating this time of year.

Filing taxes can be stressful, and to make it worse, there are unscrupulous people who are trying to get their hands on your money.

This could happen over the phone, online or even in your tax preparer’s office, so it’s important to know just how you may be vulnerable in order to best protect yourself this tax season.

Make sure to remember these popular tax-season scams and keep your money and personal information safe.

Phishing (as in fishing for information) is most often done via e-mail when scammers will send out links to fake websites that look legitimate, (such as the IRS website) but are set up for the sole purpose of stealing your personal information.

Beware of e-mails from the IRS about refunds or tax bills, and remember the IRS will not contact taxpayers via e-mail regarding such matters.

One of the most popular and long-running tax season scams is the arrest scam, where individuals receive phone calls from con artists impersonating IRS agents who threaten arrest, deportation or license revocation if a payment isn’t made immediately.

Scammers will give fake badge numbers and even alter your caller ID to make it appear that the IRS is calling.

They will request immediate payment in the form of gift cards or wire transfer, which you should recognize as a big red flag.

Taxpayers are at greater risk for identity theft during tax season. When someone else files a fraudulent return with your name and Social Security number, it can take several months and a lot of paperwork to rectify the problem.

This is why it is important to be very particular when choosing a tax preparer this tax season, as some dishonest preparers use filing season to commit refund fraud and identity theft.

The BBB suggests starting with referrals and recommendations from trusted friends and family and then checking the BBB Business Reviews at BBBHouston.org before hiring anyone to file your taxes for you.

Taxpayers also should be suspicious of tax preparers who promise inflated refunds, especially before even reviewing any tax documents, or if asked to sign a blank return.

These dishonest tax preparers also might charge a fee that is based on the percentage of the refund, which means the bigger the refund, the bigger the payday for the fraudster no matter how dishonest the means.

Because taxpayers are legally responsible for what is on their return, fraudulent filing practices that yield big refunds can lead to huge bills from the IRS to pay back owed taxes, interest and penalties that you would have to pay out of pocket after your preparer has already taken their cut.

Be on the lookout for scammers this tax season, and call the BBB Education Foundation at 713-3416141 if you have any questions about suspicious tax scenarios.