Guarding Yourself From Tax Scams – Things You Should Know!

Scammers are always seeking to take advantage of businesses, learn how to avoid schemes this tax season!

Stephanie Glanville | December 13, 2023 | Read time: 6 minute(s) | Current Events, Tax Tips | No Comments

The emergence of e-filing has certainly added value and security to the way we file taxes with the IRS and other regulatory agencies. However, often with the advancement of technology comes the enhancement of scams. In this case, digital scams can be a danger to taxpayers and businesses that are simply trying to maintain their IRS compliance.

With tax season right around the corner, now is the perfect time to brush up on the types of prevalent scams and the best practices for avoiding them and safeguarding your business.

Beware of Providers Claiming to be TaxBandits

They say impersonation is the highest form of flattery, but it is certainly the most common tactic for scammers to get your attention!

During the tax season (or anytime in general), you may come across suspicious emails or messages that may look like they were sent from TaxBandits.

Please keep in mind that there are certain requests that the TaxBandits team will NEVER make in an email. So all of the following are major red flags to alert you that you are not communicating with TaxBandits.

At TaxBandits, we prioritize the privacy and security of your personal information. We will never request your SSN, EIN, credit card, or bank information via email. If you receive a suspicious email, don’t click any links. Please forward it to support@taxbandits.com and delete it immediately.

Every email that is generated and sent by TaxBandits will contain a message similar to the one above, reminding you that you should not share any sensitive information by email. If there is no message like this in the email you receive that is an indicator that the email was not generated by TaxBandits but by someone else entirely.

The suspicious email may also contain irrelevant links. Never click any of them. Also, don’t open or download any attachments.

If you are still determining whether the email is legitimate or not, you can check the items listed below to confirm that. However, always err on the side of caution. Our team is always happy to confirm that an email was sent to you if needed.

The email address or the brand name may be misspelled.

Typically, these emails can contain fake offers or refund credits, requesting that you follow the links or download an attachment.

There may be typo errors in the email or it is not written in the style of legitimate TaxBandits emails.

If you find the email or message suspicious, please forward it to the TaxBandits team at support@TaxBandits.com.

Phishing vs. Smishing: Fraudulent Tactics

While scam emails are typically referred to as ‘Phishing’, there is also a rise in scamming through SMS (Text) messages that are sent to your smartphone. This has been termed ‘Smishing’.

Generally, this type of message comprises information that creates a sense of urgency. For example: “Your account is about to expire. Act now!”. It may contain a link requiring you to share your account information, such as email ID and password. Muck like with an email, you should never share this.

In addition to suspicious emails or text messages, you may also receive phone calls. If you receive a call or voicemail related to TaxBandits that seems suspicious, contact the TaxBandits support team at 704.684.4751 for clarification.

IRS Impersonations – What to be Aware of:

Some scammers take their scheme one step further and send an email or message claiming that they are the IRS and are reaching out about tax fraud or investigations.

Remember, the IRS will never contact you via email, and here is their official statement regarding that. If you receive this type of email, don’t panic; just forward it to phishing@irs.gov.

One of the most common scams that is currently circulating is an IRS notification claiming that you are owed an unclaimed tax refund. Don’t fall into this trap! Again, it’s important to remember that the IRS never contacts taxpayers via email, text, or social media regarding a bill or tax refund.

To find more information on IRS-related tax scams, check out here.

To learn more about TaxBandits security protocols, check out our Fraud Prevention measures and Security Policy

Conclusion

Tax scams and schemes can be intimidating, but as long as you are cautious and aware of the potential ‘red flags’, they can be avoided.

TaxBandits is here to help you enhance the accuracy and security of your IRS e-filing this tax season. Get started with us today to e-file Forms 1099, W-2, 1095, 94x, and more!