Don't Fall For These Tax Filing Scams, PA Authorities Warn

With less than a month to go before the tax filing deadline, associated scams are reaching their peak. Federal and state authorities this week warned Pennsylvania residents to be on the lookout for the latest scams aimed at stealing your personal information and even your hard-earned money.

During a news conference Monday, Revenue Secretary Dan Hassell gave an overview of the most prevalent tax season scams this year. IRS Senior Stakeholder Liaison Richard Furlong Jr. was present and discussed the IRS’ "Dirty Dozen" list, an annual summary of the most common scams that peak during the filing season.

Last year, 2.7 million taxpayers filed their Pennsylvania tax returns in the final month before the deadline, according to information from the state Department of Revenue. “This is a good time for us to remind the public that filing now through our free online system can help prevent cybercriminals from stealing your personal information and filing a fraudulent tax return in your name," Hassell said.

In its "Dirty Dozen" campaign, the IRS highlights one scam on 12 consecutive week days to raise awareness. The campaign started March 4.

So far, the following six scam threats have been covered by the IRS:

Phishing schemes

The end goal of all phishing scams is the same: to steal personal information. Taxpayers are often victimized by a creative scheme that involves their own bank account. Residents should watch out for emails stating they're from the IRS, promising a big refund, or even threatening people. Don’t open attachments and click on links in emails. "After stealing personal data and filing fraudulent tax returns, criminals use taxpayers' bank accounts to direct deposit tax refunds. Thieves then use various tactics to reclaim the refund from the taxpayer, including falsely claiming to be from a collection agency or the IRS," information from the IRS said. Review these basic tips if you see an unexpected deposit in your bank account. Click here to read more on phishing schemes.

Phone scams

This scam involves unsolicited calls and voicemails with urgent callback requests from scammers claiming to be IRS officials. The scammers demand that the victim pay a "tax bill" by sending cash through a wire transfer, prepaid debit card or gift card. The phone scammers may alter or “spoof” their caller ID to make it look like the IRS or another agency is calling. Residents should remember the IRS will never call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. Click here to read more on phone scams.

Identity theft

Tax-related identity theft occurs when someone uses a stolen Social Security number or Individual Taxpayer Identification Number (ITIN) to file a fraudulent tax return claiming a refund. Click here to read more on identity theft scams.

Tax preparer fraud

It is important to choose carefully when hiring an individual or firm to prepare a tax return. "Though most tax professionals provide honest, high-quality service, a minority of dishonest preparers operate each filing season perpetrating refund fraud, identity theft and other scams that hurt innocent taxpayers," the IRS said. Click here to learn more on tax preparer fraud.

Inflated tax refund scam

Return preparers promising larger refunds than competitors or providing refunds substantially larger than taxpayers have routinely seen could be a warning sign. "Con artists promising overly large refunds frequently prey on older Americans and low-income taxpayers and those who don’t have a filing requirement. They may also victimize non-English speakers who may or may not have a requirement to file a tax return," the IRS said. Click here to learn more on inflated tax refund scams.

Falsifying income scam

The IRS warns taxpayers to avoid schemes that involve falsifying income, including the creation of bogus Forms 1099. "Con artists commonly use this trick as well as related scams designed to get taxpayers to erroneously claim tax credits they aren’t entitled to," the IRS states. Taxpayers should also be mindful of scams disguised as a debt payment option for credit cards or mortgage debt. This scheme usually involves the filing of a Form 1099-MISC, Miscellaneous Income, and/or bogus financial instruments such as bonds, bonded promissory notes or worthless checks. Click here to learn more on falsifying income scams.

Pennsylvania Taxpayers are encouraged to visit the Department of Revenue’s Padirectfile, a free state-only electronic income tax filing system. The state Department of Revenue reminds victims to contact the Fraud Detection and Analysis Unit at 717-772-9297 or RA-RVPITFRAUD@pa.gov.