Welcome to Extreme Investor Network, where we provide you with expert advice on all things personal finance. As the April 15 federal tax deadline approaches, scammers are ramping up their efforts to steal taxpayers’ personal and financial information. Last year, the IRS received over 294,000 complaints of identity theft, resulting in more than $5.5 billion in tax fraud.
As of its March 22 report, the IRS has processed 79.2 million federal returns out of an expected 167 million individual tax returns for the season. With less than two weeks left to file your return or request an extension, it’s crucial to protect yourself from potential scams.
At Extreme Investor Network, we understand the importance of safeguarding your financial information. That’s why we’re here to provide you with valuable tips on how to avoid common tax scams and protect your wealth:
Beware of unsolicited emails, texts, phone calls
Scammers often pose as legitimate tax professionals or financial organizations, offering to maximize your tax refund or assess your savings. Be cautious of emails, text messages, or calls from unfamiliar sources requesting personal or financial information.
Third-party offers to set up your IRS account
Be wary of schemes that promise to expedite your tax return process by setting up an online account with the IRS. Avoid providing sensitive information such as your Social Security number or photo ID to unknown parties to prevent potential fraud.
‘Ghost tax preparers’
Watch out for “ghost tax preparers” who fail to sign your return or provide their credentials. Always review your tax return before filing to ensure that the preparer’s information is accurate. Never sign a return without verifying the authenticity of the preparer.
Tips to avoid tax scams
- IRS will typically contact you via regular mail, not phone or email.
- Utilize the approved authentication process on IRS.gov for secure transactions.
Reporting tax scams
If you suspect you’ve fallen victim to a tax scam, report it to the appropriate authorities immediately. Notify the IRS of any unsolicited emails claiming to be from the agency, and contact the Federal Trade Commission if you’re a victim of identity theft.
At Extreme Investor Network, we prioritize your financial well-being and strive to equip you with the knowledge and resources to safeguard your wealth. Stay tuned for more insightful articles and tips on personal finance on our platform.
