As we kick off tax season, the IRS has released their list of "Dirty Dozen" tax scams, forewarning tax payers about the top twelve tricks scammers and hackers are conning people with. Social media has created a new type of playground where many users are vulnerable, making it easier for scammers to carry out shams and tricks.
Your tax returns, financial information and bank statements may be safely locked in your home but technology and the Internet has created a whole new foreground that we should all be wary of. When filing your taxes, be as cautious and secure with where and who you are sharing your information.
The Internal Revenue Service released earlier this week this list of the top scams and schemes most common during tax season.
- Identity Theft
- Phishing
- Return Preparer Fraud
- Hiding Income Offshore
- "Free Money" from the IRS & Tax Scams Involving Social Security
- False/Inflated Income and Expenses
- False Form 1099 Refund Claims
- Frivolous Arguments
- Falsely Claiming Zero Wages
- Abuse of Charitable Organizations and Deductions
- Disguised Corporate Ownership
- Misuse of Trusts
Many of the schemes in this "Dirty Dozen" list are forewarning those who are trying to rip-off the government and the IRS. Taxpayers should pay attention and be cautious of identity theft and phishing scams.
As much as we all love to blast our personal information, what we are doing and what we plan on doing all over our social channels, we shouldn't be so naïve. Scammers and con artists scan social media sites to try and gain information that can help them either steal your identity or lure you into a phishing tricks.
Phishing, what is it exactly?
A phishing scam is specific to the Internet where users are duped by fake websites or emails that trick people to share private or financial information. Phishing and identity theft are often carried out hand in hand.
Don't ever share your information on an insecure site. And though an email or a website looks legitimate, make sure you are not getting rip-off. The IRS specifically states in their announcement that they will never reach out to get information for refunds or taxes.
Trust your instincts; if you are having second thoughts then there is probably a reason why. Try to work with the same tax preparer so you can build that trust or if you are filing your taxes yourself, use a program that is secure.
The Internet can be a dangerous place, especially with important financial information that involves your taxes. We at Hudson Horizons hope you are being smart and careful with where you file your taxes and how!