20 Jan PROTECTING YOUR FINANCES: HOW TO SPOT AND AVOID TAX SCAMS THIS SEASON

Dear Valued Client,

With the 2026 tax filing season underway (returns accepted starting January 26), scammers are ramping up efforts to exploit taxpayers. The IRS and FTC have noted surges in impersonation calls, phishing attempts, and misleading social media advice. Falling victim can lead to stolen identities, drained accounts, or penalties from improper filings.

As your trusted CPA, we’re committed to keeping you informed and protected. Here’s what you need to know right now.

Key Warning Signs of Tax Scams

Scammers often impersonate the IRS or offer “too-good-to-be-true” refunds/credits. Watch for these red flags:

• Unexpected contact — The IRS never initiates contact via phone, email, text, or social media for unpaid taxes or refunds. Their first notice is always by mail.
• Urgent threats — Demands for immediate payment to avoid arrest, deportation, or asset seizure. Real IRS processes allow appeals and time.
• Pressure for sensitive info — Requests for SSN, bank details, credit card numbers, or gift cards/prepaid cards (the IRS never accepts these for payments).
• Promises of big refunds/secret credits — Especially via social media influencers urging false claims (e.g., misusing Forms W-2 or exaggerated Employee Retention Credits/Fuel Tax Credits).
• Spoofed caller ID — Calls appearing as official IRS or government numbers, or from fake agencies like “Tax Resolution Oversight Department.”

Common Tax Scams in 2026

1. IRS Impersonation Calls/Texts — Claiming back taxes owed; surging reports of voicemails like “final attempt to reach you” or fake “liability reduction programs.”
2. Phishing/Smishing (Email/Text Scams) — Fake IRS emails/texts with links/attachments stealing info or installing malware.
3. Social Media Misinformation — Bad advice leading to lying on returns or connecting with scammers promising hidden credits.
4. Fake Charities/Refund Schemes — Post-disaster donation pleas or “help” filing for unearned refunds.
5. Senior-Targeted Schemes — Repeated requests for money, often involving retirement withdrawals with tax consequences.

How to Protect Yourself

• Verify directly — If unsure, go to IRS.gov or call official numbers (e.g., 800-829-1040). Never use contact info from the suspicious message.
• Don’t engage — Hang up, delete, or ignore unsolicited contacts. Don’t click links or share info.
• Use secure channels — Create/view your IRS Online Account at IRS.gov for legitimate notices.
• Guard your data — Consider an Identity Protection PIN (IP PIN) via IRS.gov for extra security.
• For businesses/tax pros — Use multi-factor authentication and watch for spear-phishing targeting client data.

What to Do If You Suspect a Scam

• Report it:
  • Forward phishing emails to phishing@irs.gov (include details like “IRS Phone Scam” in subject).
  • Report calls/texts to Treasury Inspector General for Tax Administration (TIGTA) at tigta.gov or 800-366-4484.
  • File with FTC at ReportFraud.ftc.gov.
• If victimized — Contact IRS Identity Theft Hotline (800-908-4490), monitor your credit, and reach out to us immediately for help filing an identity theft affidavit (Form 14039).

Tax season is exciting for refunds and planning—but safety comes first. If you receive anything suspicious or have questions about your returns, please reply to this email or call our office. We’re here to verify, advise, and protect your interests.