IRS warns taxpayers about scams as the tax deadline approaches in 2023:

The IRS encourages taxpayers to safeguard their financial information as the new year begins. They inform taxpayers to be cautious of IRS impersonation fraud and other scams. The IRS has issued a warning to the public about potential unemployment scams. On January 23, the 2023 tax filing season will begin.

Different types of tax scams:

The scammers are preparing to take both your money and personal information. They call victims, pretending to be the IRS, and frighten or alarm them. You can receive scam emails, texts, or even knocks on your door from fraudsters. The Security Summit initiative has taken several actions to prevent identity theft. Partners in the Summit are still informing taxpayers about traditional tax season frauds. You can keep your documents like a check stub maker to keep yourself safe from tax scams. Let’s take a look at these.

Text message scams:

There was an increase in texts that claimed to be from the IRS. The taxpayers receive scam texts which mention COVID-19 and “stimulus payments.” The links in these communications lead to fake IRS web pages or other online resources. The IRS does not use text messaging to discuss personal tax matters. Additionally, the IRS won’t contact taxpayers via social media. In case of a scam text, a taxpayer must report the following information in an email to phishing@irs.gov.

Date, time, and time zone when they received the text message.
Phone number receiving the text message.

The IRS Urges everyone not to accept attachments or click links in unexpected text messages. Even if they come from the IRS or state tax offices, try not to click those links if you are suspicious.

Unemployment fraud:

The IRS warns employees about claims of unemployment for which they have yet to apply. There is an increase in false unemployment claims using stolen identities. Thieves are using these stolen identities to claim benefits. Unemployment benefits are income and are subject to taxation. States provide Form 1099-G and Certain Government Payments to beneficiaries and the IRS. It helps to record the amount of taxable compensation received and any withholdings. Any employee who receives a false or incorrect Form 1099-G should report it to the state agency. They can even ask for a revised version. Taxpayers can visit the DOL.gov/fraud page of the U.S. Department of Labour for more information. Individuals may be victims of jobless identity theft if they get any of the following:

Mail from a government agency about a payment or claim for unemployment benefits that they still need to submit. Besides, this might involve debit cards or unforeseen payments from any state.
An IRS Form 1099-G reflects unemployment benefits they didn’t expect. Unemployment benefits they did not get or benefits more than their records.
Their employer notified them that they’d gotten a request for details about an unemployment claim.

Email phishing scams:

To get taxpayers’ personal or financial information, the IRS needs to email them. The United States Postal Service sends regular mail to communicate. You should report an unsolicited email that claims to be from the IRS or a program connected to the IRS. Details are available on the IRS.gov Report Phishing and Online Scams page. The IRS will only contact a company under specific conditions. These occur when a taxpayer has an unpaid tax bill or an unpaid employment tax payment. The IRS may also need to visit a business as a part of a civil inquiry or during a criminal investigation. The IRS offers detailed instructions on identifying them when they knock on your door.

Phone scams:

The IRS never leaves any automated, threatening, or urgent messages. Many phone scams warn victims that an arrest warrant will be issued if they don’t call back. Criminals can “spoof” caller ID numbers to make them appear from any nationwide location. Thus, this makes it impossible for taxpayers to confirm the real call number. To trick taxpayers, scammers have impersonated federal agencies and other organizations.

The IRS warns about the fraudsters’ attempt to profit from taxpayers’ charity. Fraudulent schemes begin with unwanted contact through phone, email, or in-person. They use several strategies. Some pretend to be charities to get funds or private information from taxpayers. They act to operate for the IRS, assisting victims in filing casualty loss claims. Others run fraudulent charities and use phone calls to ask for donations.

Ten steps to protect sensitive information:

The Security Summit offers ten essential steps that everyone should remember. These steps will assist taxpayers and tax professionals.

Make sure your computer’s anti-virus software includes a function to block malware. Activate a firewall to stop intrusions.
Use security software on your PCs, tablets, and mobile devices, and make sure it’s up to date.
Avoid clicking on any links or attachments that seem questionable.
For online accounts, create secure, one-of-a-kind passwords. Use a phrase or sequence of words that are simple to remember, or use a password manager.
Whenever possible, use multi-factor authentication. This feature is available on many social media and email platforms. It makes account hacking more difficult for thieves.
Shop at websites where the web address starts with “HTTPS.” The “s” stands for “secure” because it refers to communications over a network. Check the browser window for the “padlock” icon as well.
Only do business via secure public Wi-Fi in settings like a mall. Consider the possibility of theft.
Secure your home Wi-Fi network with a password. Secure technologies, such as wireless door locks, are crucial as more houses connect to the internet. Identification thieves may use these as entry points.
Back up your data on both computers and mobile devices. Copy information from PCs or mobile devices to a cloud service or an external hard drive. This offers a crucial location to restore financial or tax data.
If you work from home, set up a VPN to connect to your place of employment.

Reporting an IRS impersonator:

You can report an IRS impersonator in the following ways:

You can report the call by dialing 800-366-4484.
Send an email to phishing@irs.gov with the subject “IRS Phone Scam” to report the phone number.
Forms are present on the page of the Treasury Inspector General for Tax Administration website. Under “IRS Scams and Fraud,” taxpayers should select the right option. They must follow the on-screen directions.