Post-Tax Season: A Prime Time for Scams
With the prime tax season coming to a close, most people are wrapping up their taxes or waiting on refunds. It’s also a time when scam activity tends to pick up, as fraudsters take advantage of the increased communication and general “tax season” noise.
The IRS has flagged a rise in more sophisticated (including AI-driven) scams this year. Here are a few tips on how to protect yourself.
Simple Rules:
- The IRS contacts you by mail first—NEVER by text, social media, or surprise phone calls.
- The IRS will NEVER demand a specific form of payment (especially gift cards or crypto).
- NEVER discuss your taxes over the phone with a caller you are not familiar with. If you do not recognize the caller’s number, let them leave a message. If the message is tax related, go directly to IRS.gov to check your account and get the official phone numbers to contact the IRS. ALWAYS review your return and confirm your bank information before filing.
Her are some of the most prevalent scams being utilized.
Common Scams:
- “Unclaimed refund” letters. They often arrive in cardboard envelopes, that mimic official IRS correspondence, to steal personal information and money. They falsely claim the recipient has an "unclaimed refund" and demand sensitive details to collect. Do not call the numbers provided, go to the IRS.gov website to find an official number to call.
- Refund status phishing texts and emails. These are communications—texts, emails, or calls—impersonating tax agencies to steal personal information or money by claiming there is an issue with your tax refund. These scams often use urgent, professional language to trick victims into clicking malicious links, downloading malware, or providing sensitive bank details.
- Aggressive collection calls (increasingly using AI) called vishing. They are highly sophisticated, targeted scams that use AI-generated voice cloning, automated data scraping, and high-pressure social engineering to steal money or sensitive personal information. These scams differ from traditional robo-calls by using realistic, cloned voices and tailored information, making them significantly more believable and effective.
- Social media “refund hacks”. These scams often promote "little-known" tax credits, or they may reach out on social media claiming they can recover the lost money for an upfront fee.
A little vigilance now can save a lot of headaches later. If you ever receive something suspicious, you can forward it to phishing@irs.gov, report it to the FTC Report Fraud portal and the FBI Internet Crime Complaint Center (IC3). If ever in doubt, feel free to reach out to a trusted family member, contact your CPA or notify the Elmwood team of any suspicious activity and we’re happy to review. Remember, slowing down your response, double‑checking sources, prompt reporting of any suspicious activity and working with a qualified professional can help you protect yourself.
While most people want to stop thinking about their taxes after the tax deadline, it can be the best time to make sure you aren't on track for next April. We are happy to review your tax return and discuss strategies such as Roth conversions, charitable giving via Donor Advised Funds, Qualified Charitable Deductions from your IRA, and Health Spending Account contributions to name a few. Let's ensure you are planning differently for next year.
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