How to avoid tax scams

Tax season is underway.

If you still haven’t filed your returns, you still have time. But the IRS wants consumers to be mindful when selecting a tax preparer. The IRS Criminal Investigators took part in 1,409 tax crime cases and found more than $5.5 billion in fraud.

Tax scams are going to be out there, so what do you look for?  

Phishing is one of the most common scams the IRS sees this time of the year. That’s when a scammer impersonates the IRS to trick taxpayers into providing personal information or money. These scams can take many forms – emails, phone calls, or even text messages.

The IRS has also seen an increase in dishonest tax preparers. They may claim they can get you a bigger or better refund.

We spoke with Harry Chavis, the special agent in charge of the IRS Criminal Investigation unit in Boston.

He says it’s important to carefully select a tax professional to prepare your return – some may not have the best intentions.

“They're going to come out of the woodwork -- some of the things that we see in addition to pop-up businesses that are operating out of a storefront as a return preparer. We're seeing an influx, of course, and folks reaching out on social media trying to entice you to come to them to prepare their tax return.”

Chavis reminds consumers that the IRS will reach out to taxpayers by mail first, rather than by phone or email.

There are several steps you can take to ensure that your tax return is accurately prepared and submitted.

Ask for their Preparer Tax Identification Number (PTIN). It's required for tax preparers who charge for their services and lets you know the preparer has registered with the IRS. The IRS has a directory where you can verify their PTIN and credentials.

Ask about service fees and avoid preparers who base fees on a percentage of the refund.

Never ever sign a blank return.

Most importantly, ensure the preparer signs the return and includes their tax ID number on it.

And remember, when you sign it, you are legally responsible for the information on your tax return – no matter who is helping you submit it.

Get referrals from friends and family. Once you have a few options, do some online research into the company or preparer and look for reviews or complaints.

You can report abusive tax preparers and suspected tax fraud to the IRS.

If you have questions over an unsolicited phone call, email, text message or letter that claims to be from the IRS, you can call the agency at 1-800-829-1040 or by visiting their website.