Tax Scams You Need to Avoid

Tax season can be a stressful time of year for many people. It’s important to be aware of everything, especially when it comes to the various tax scams out there. Sometimes, taxpayers can be taken advantage of. Here are some things to look out for.

The Top Tax Scams to Avoid

Fake Tax Preparer

Many people pay a company or an individual to pay their taxes. These are called “tax preparers.” Although they can be helpful in doing your taxes, it’s important to be aware of any fake ones.

Tax Relief Promises 

Additionally, be on the lookout for any suspicious offers of “tax relief” or “tax forgiveness”. Be cautious of scams that ask for personal information. You may also be asked for financial information that can be used for identity theft.

Taxpayers should also be aware of fake charities. Scammers may set up phony charities that appear to be legitimate. They may ask for donations and promise tax deductions. They won’t use the money for charitable purposes. Do some research to ensure your money is going to a legitimate charity. 

Identity Theft

One of the most common tax scams, is identity theft. Identity thieves may use stolen information to file false tax returns and collect refunds. They may also use the stolen identity card to open bank accounts or take out loans in your name. To protect yourself from identity theft, keep your Social Security number, bank account number, and other personal information secure.

Phishing Scams   

Phishing scams are another common tax scam. Scammers may send emails or create websites that appear to be from the IRS. These emails or websites may ask for personal information. This can include your Social Security number or bank account numbers. Don’t fall for these scams, as the IRS will never ask for this information via email or a website.

By watching out for these scams, you can protect yourself from becoming a victim of tax fraud. Keeping up to date on the latest tax scams is also important and it can ensure that you remain alert to any suspicious activity.

Get Cash with Advance Financial

Advance Financial offers a fast and easy solution to help you manage your finances. With competitive interest rates, flexible repayment terms, and no hidden fees, an Advance Financial line of credit provides the perfect balance of convenience and affordability. Ready to get started? Apply online or stop by one of our stores to learn more about our line of credit.