Get Ready for Tax Season with Rally Credit Union

It's that time of year again—tax season! Last year, the IRS processed over 140 million federal income tax returns, and this year is expected to be even busier. While tax season can be stressful, it's important to stay vigilant against scammers and fraudsters who are looking to take advantage of unsuspecting taxpayers. At Rally Credit Union, we're committed to protecting your financial well-being. Here are five common tax scams to watch out for this spring:

1. Phishing Scams

The IRS will never contact you via email, text message, or social media to request personal information. Scammers often pose as IRS agents on these platforms, claiming you owe back taxes and need to provide payment information. Remember, the IRS will only contact you through official mail.

2. Mailing Scams

Scammers know that the IRS primarily communicates through mail. One common scam involves sending letters that claim you have an unclaimed refund. These letters often come in cardboard envelopes marked "Unclaimed Refund" and may include fake IRS phone numbers and addresses. The biggest red flag? Requests for photos of your driver's license or other ID. The IRS will never ask for this.

3. Fake Charities

Scammers are aware that many people make charitable donations for tax deductions. They may pose as legitimate charities to solicit donations. To verify a charity's legitimacy, use the IRS's Tax-Exempt Organization Search (TEOS).

4. Impersonation Phone Calls

Fraudsters may call, pretending to be IRS agents, using fake names and identification numbers. They might claim you owe taxes and demand payment via wire transfers or gift cards. The IRS will never call you to discuss your tax situation or request payment through these methods.

5. Ghost Preparers

Tax season can be daunting, and some people turn to tax preparers for help. However, be wary of "ghost preparers" who prepare your tax return but refuse to sign it. They might include false information to increase your refund and take a cut. Always ensure your tax preparer signs your return.

Bottom Line: The IRS doesn't contact taxpayers by email, text, or social media to request personal or financial information. If the IRS needs to contact you, they will do so by mail.

If you've received a message from any of these channels, it's a scam. Do not click on any links or respond. The IRS also relies on victims to report scams or suspected fraud. You can call also call the IRS toll-free at 800-829-1040.

At Rally Credit Union, we're here to help. If you have any questions about financial education or our services, please don't hesitate to contact us. Stay safe and informed this tax season!