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Anytime that you are dealing with financial issues, you’ll need to be mindful of people who might try to scam you out of your money.
In this regard, tax scams take place at increasing levels.
Since paying taxes is something that everyone needs to do, you should be aware of the scams as they come about. Follow these tips so that you can avoid these issues.
Look out for These Tax Scams
You’ve probably heard a lot about credit card scams, but tax scams are taking off in popularity and frequency.
1. Phishing Scams
Be careful what you click.
With phishing scams, attackers trick you into clicking on something that funnels information to them. They will then use this information to get tax money out of you.
The main thing you can do is to be vigilant about your cybersecurity and making sure that you only open e-mails, files, and messages from trusted sources.
Make sure that you use proven software platforms like PayStubCreator, and steer clear of products from unproven or unknown developers.
2. Phony Tax Payment Arrangements
If you’ve ever had to sign a tax payment arrangement, you know that you generally will make payments through a third-party processor.
Many scammers will pose as legitimate companies to process your payment. Always check any company with the Better Business Bureau (BBB) and thoroughly research them before setting up any form of tax arrangements.
3. Ransomware for Taxes
Right now, ransomware attacks are one of the biggest forms of cyberthreat. With these attacks, hackers take over your systems and demand money for you to regain access.
The uptick in ransomware attacks these days is alarming.
In fact, ransomware attacks have gotten so bad that they are attacking entire municipalities. Most recently, attackers attempted to stick the city of Baltimore up for more than $100,000.
Right now, ransomware attackers are even targeting your tax money. Ramp up your cybersecurity so that you can avoid these threats.
4. Text Messages and Phone Calls Posing as the IRS
During tax time, you will start to get phony texts and voicemails from people posing as the Internal Revenue Service (IRS). Some of these messages will even be threatening.
They often explain that you have a lawsuit pending and that you need to call back before a certain time in order to settle it. Keep in mind that the IRS doesn’t call. They only correspond in written form.
If you get calls and texts, you can guarantee that it is a scam.
5. Fraudulent Tax Preparers
Finally, you definitely need to be aware that some people will even pose as phony tax preparers. You need to make sure that whoever handles your taxes is licensed and insured.
If they can’t present credentials, then look elsewhere.
Be Vigilant During Tax Time
As you can see, tax scams are prevalent, so you need to be vigilant. Take time out to do business with the best tax preparers, and avoid scams at all costs.
When you want to learn more about business and finance, don’t hesitate to reach out.