What is a Tax Fraud Scam?
Scammers may impersonate the IRS in order to obtain your personal information, file a fraudulent tax return and steal your refund. They may also try to trick you into making nonrefundable payments, or attempt to gain remote access to your computer and download malicious software.
How it Works
These scams utilize various methods for initiating contact, such as email, phone, text and social media, and are becoming increasingly sophisticated. Scammers may:
- Claim to be the IRS asking you to update or validate information using a fake login page, fake IRS website, fraudulent Google form or Sharepoint document, and more. They ask for personal information such as birthdate and Social Security number, that they can use to steal your identity.
- Claim there are false problems with your return or tax documents.
- Try to trick you into making immediate, nonrefundable payment(s) to a fraudulent IRS entity.
- Ask you to call a telephone number. Once on the call, they attempt to get you to download and install software to gain remote access to your computer so they can steal personal information or control your browser to make transactions on websites you are logged into.
What to Watch Out For
- Be suspicious of requests for personal information or payments sent to you through email, text, or social media claiming to be the IRS or U-M administrative units. The IRS does not initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. The IRS will never call to demand immediate payment, or call about taxes owed without first having mailed you a bill.
- Be suspicious of ads for tax filing services that promise you large or expedited tax refunds. Often they are scams to steal your personal information.
How to Protect You and U-M
- Participate in the IRS Identity Protection (IP) PIN Program and get an identity protection PIN that helps prevent others from using your Social Security number to file fraudulent tax returns in your name. The PIN is good for one year.
- If you file online, first take steps to secure your devices, data, and home network. This means setting strong passwords, backing up your data, choosing appropriate privacy and access settings, only connecting to secure networks, and more.
- File your taxes as soon as possible. This prevents criminals from filing under your name, and will get you your tax refund (if you are eligible for one) faster.
- Know your tax filing merchants. Use only Authorized IRS e-file Providers to file your taxes. If you're filing online, make sure that the website URL starts with https to indicate a secure connection.
- Stay informed of common identity theft and tax scams. See the most recent Safe Computing Phishing Alerts and stay up-to-date on tax scams and consumer alerts issued by the IRS.
- Be wary of requests to download and install remote access software to allow a person claiming to be a help desk agent to assist you. Do not allow anyone other than U-M IT support staff to access a U-M owned computer remotely.
If You Get Caught
- Report tax identity theft to the federal government and get a recovery plan. Visit the Federal Trade Commission's IdentityTheft.gov website. See information about Identity Protection: Prevention, Detection and Victim Assistance on the IRS website.
- Alert the appropriate state tax organization. In Michigan, contact the Michigan Department of Treasury.