Every year, millions of dollars vanish into the hands of scammers preying on unsuspecting taxpayers. With the tax season in full swing, fraudsters ramp up their efforts, using phone calls, emails, and even text messages to deceive individuals into handing over sensitive information. Knowing what to watch for can mean the difference between protecting your finances and becoming a victim.

Common Tax Scam Tactics

Scammers are becoming more creative, but their methods often follow familiar patterns. Recognizing these red flags can help prevent financial losses and identity theft.

• Unsolicited IRS Communications: If you receive a call, text, or email claiming to be from the IRS, be skeptical. The IRS does not initiate contact this way.
• Urgency and Threats: Scammers often use fear tactics, claiming you owe money and will face legal action if you don’t pay immediately.
• Requests for Sensitive Information: Fraudsters may ask for Social Security numbers, bank account details, or login credentials to “verify” your identity.
• Fake Refund Claims: Some scams promise large refunds in exchange for upfront fees or personal data.

Real Experiences from Grand Junction Residents

Residents in Grand Junction, Colorado, have witnessed these scams firsthand. Julie Yancey, a local taxpayer, shared her approach: “If somebody calls me about my taxes, and I didn’t call them, then I know that’s a scam.”

Mark Wetzel, another resident, pointed out his strategy to avoid fraud: “I ignore phishing efforts on emails, things like that. Our taxes are filed electronically, so I’m not too worried about interception in the mail.”

The Growing Threat as Tax Day Nears

Tax scams spike as the filing deadline approaches. Scammers exploit last-minute filers who may be more vulnerable to pressure tactics.

Mary Speer, a Police Service Technician with the Grand Junction Police Department, highlighted a common scam: “They tell people they received too much or too little money and need to verify their information. Once they have access, they can drain accounts or commit identity fraud.”

She also advised taxpayers to be extra cautious as April 15 approaches. “The closer we get to Tax Day, the more scams we see.”

Steps to Protect Yourself

If you suspect a scam, here’s what you should do immediately:

• Cease Communication: Hang up the phone or ignore the email. Do not engage further.
• Verify Legitimacy: If the IRS needs to contact you, they will send a letter via U.S. Mail.
• Ask for a Reference Number: If someone claims to be from the IRS, request a reference number and verify it independently.
• Report the Incident: File a complaint with the IRS and the Federal Trade Commission at www.ftc.gov
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• Consult Local Authorities: If unsure, contact your local police department for guidance.

Safe Tax Filing Practices

Filing taxes online is convenient, but it comes with risks. Ensure you’re using a trusted website by checking for “.gov” domains or reputable tax preparation services.

For those preferring in-person filing, certified tax preparers and IRS-authorized services can offer a safer alternative.

With Tax Day set for April 15 this year, vigilance is key. Awareness and proactive measures can help keep your personal and financial information secure from scammers.